Uber Turns In Big Revenue Beat, Says Era Of Growth At All Costs Is Over

Uber Technologies, Inc. UBER crushed expectations for fourth-quarter earnings, while losing less per share than expected.

The ride-hailing pioneer on Thursday reported quarterly revenue of $6.069 billion, topping the analyst consensus estimate of $4.06 billion by nearly 50%.

While the company continues to lose money, it reported quarter losses of 64 cents per share, better than the 68 cents per share loss the Street had forecast.

Uber has gone on a cost-cutting spree, laying off hundreds of front-office employees in October. The company also said bookings were up in the quarter by $4 billion to $18.1 billion, or 28% year over year.

Investors have mostly remained interested in Uber, with shares are up nearly 25% since the beginning of the year.

Other Highlights

Uber Rides and Uber Eats grew 20% and 73% year over year, respectively, on a constant currency basis.

• Revenue grew 37% year-over-year, or 39% on a constant currency basis, up from 30% in the third quarter of 2019.
• Net loss attributable to Uber Technologies, Inc. was $1.1 billion, which includes $243 million in stock-based compensation expense.
• Rides Adjusted EBITDA delivered a $742 million profit and 24.3% margin as a percentage of Rides revenue.

"We recognize that the era of growth at all costs is over," CEO Dara Khosrowshahi said in a statement. "In a world where investors increasingly demand not just growth, but profitable growth, we are well-positioned to win through continuous innovation, excellent execution, and the unrivaled scale of our global platform.”

Uber Stock Up

Shares rose 3% in after-hours trading to $38.25.

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Photo courtesy of Uber.