Uber focuses on 2023 profits as pandemic pain eases
- The rideshare market is benefiting from a return to normal and a rise in car ownership costs, which is pushing many to opt for cab rides
- Uber’s revenue rose 49 per cent to US$8.61 billion in the fourth quarter, beating the average analyst estimate of US$8.49 billion
Uber Technologies said on Wednesday it would focus on delivering profits this year, after rounding off 2022 with blowout earnings as a surge in demand for airport and office rides helped the company rebound from pandemic lows.
Uber’s shares rose nearly 4 per cent after the rideshare giant reported a surprise fourth-quarter profit and chief executive Dara Khosrowshahi reassured investors that the impact of the pandemic was “well and truly behind” the company.
“Despite any macroeconomic uncertainty, I’m more confident than ever in our prospects,” he said.
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Uber forecast adjusted EBITDA, a profitability metric that excludes some costs, between US$660 million and US$700 million for the first quarter, well above the average analyst estimate of US$593.06 million, according to Refinitiv data.
“They absolutely knocked it out of the park … Profitable growth in this environment is very important,” said Tejas Dessai, an analyst at Global X ETFs, which has Uber in several of its funds.
The rideshare market is benefiting from a return to normal and a rise in car ownership costs, which is pushing many to opt for cab rides. At the same time, more drivers are signing up as they look for new sources of income.
Khosrowshahi said active drivers on the platform reached an all-time high in the fourth quarter and continued to grow in January, putting behind worries of a shortage of drivers signing up as demand jumped.
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“We have clearly separated from our competitors on driver preference,” Khosrowshahi said.
Shares of smaller rival Lyft, which is scheduled to report results on Thursday, were down more than 4 per cent.
Uber’s revenue rose 49 per cent to US$8.61 billion in the fourth quarter, beating the average analyst estimate of US$8.49 billion. Rideshare revenue surged 82 per cent.
It earned 29 cents per share, while analysts had estimated a loss of 18 cents.
