Uber Technologies Clocks Strong Q4 Performance, CEO Terms It 'Profitable Growth At Scale'

Uber Technologies, Inc UBER reported fourth-quarter FY23 revenue growth of 15% year-on-year to $9.94 billion, beating the consensus of $9.76 billion. Uber’s GAAP EPS of $0.29 beat the consensus of $0.17. The stock price dropped after the results.

Revenue from Mobility grew to $5.54 billion, up 34% year-over-year, Delivery was $3.12 billion, up 6%, and Freight at $1.28 billion, which fell 17% year-over-year.

Gross Bookings grew 22% year-over-year to $37.58 billion, with Mobility Gross Bookings of $19.29 billion, up 29% year-over-year, Delivery Gross Bookings of $17.01 billion, up 19%, and Freight Gross Bookings of $1.28 billion, which fell 17% year-over-year. 

Trips grew 24% year-over-year to 2.60 billion, or 28 million per day. Uber’s Monthly Active Platform Consumers reached 150 million, up 15% year-over-year.

Margins: Uber clocked an Adjusted EBITDA of $1.28 billion, driven by Mobility. Adjusted EBITDA margin as a percentage of Gross Bookings was 3.4%, up from 2.2% in the fourth-quarter of FY22. 

Uber held $5.4 billion in unrestricted cash and equivalents and generated $768 million in free cash flow.

“2023 was an inflection point for Uber, proving that we can continue to generate strong, profitable growth at scale,” said Dara Khosrowshahi, CEO. 

Outlook: Uber expects first-quarter gross bookings of $37.0 billion to $38.5 billion and an adjusted EBITDA of $1.26 billion to $1.34 billion. 

The first-quarter consensus for revenue and EPS are $10.02 billion and $0.20.

Price Action: UBER shares traded lower by 1.73% at $69.25 premarket on the last check Wednesday.

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