Uber Technologies said on Wednesday it would focus on delivering profits this year, with earnings plunging through 2022 as a surge in demand for airport and office rides helped the company recover from the pandemic.
Shares of Uber rose nearly 4 percent in midday trading after the rideshare giant reported a surprise fourth-quarter profit and Chief Executive Dara Khosrowshahi reassured investors that the pandemic’s impact is “well and truly felt” at the company. I was behind”.
“Despite any macroeconomic uncertainty, I am more confident than ever in our prospects,” he said.
Uber forecast adjusted EBITDA, a profitability metric excluding certain costs, of between $660 million (roughly Rs. 5,450 crores) and $700 million (roughly Rs. 5,790 crores) for the first quarter, which averaged $593.06 million (roughly Rs. 5,790 crores). Well above analyst estimates. , 4,900 crore), according to Refinitiv data.
“They absolutely hit it out of the park … Profitable growth is very important in this environment,” said Tejas Desai, an analyst at Global X ETF.
The rideshare market is benefiting from normalization and rising car ownership costs, which is driving many people to opt for cab rides. Plus, 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 rise in January, leaving behind concerns of a lack of drivers signing up as demand surged.
“We clearly separated ourselves from our competitors on driver preference,” Khosrowshahi said.
Smaller Competitor’s Shares Lyftwhich is set to report results on Thursday, were down more than 4 percent.
UberIts revenue rose 49 percent to $8.61 billion (about Rs. 71,170 crore) in the fourth quarter, beating the average analyst estimate of $8.49 billion (about Rs. 70,170 crore). Rideshare revenue increased by 82 percent.
© Thomson Reuters 2023