Uber achieves record revenue but gives disappointing outlook

In the fourth quarter of the previous year, Uber reported financial results that surpassed analysts' expectations for revenue. The company generated $11.96 billion, an increase of 20% compared to the same period in the previous year, when it recorded $9.9 billion. Despite this positive revenue performance, the adjusted earnings per share fell short of expectations, resulting in a 7% share price decline. Uber's net income soared to $6.9 billion, or $3.21 per share, largely due to a substantial $6.4 billion tax valuation benefit and gains from equity investments. Overall, the company experienced significant growth across its segments. Uber's mobility segment specifically reported revenue of $6.91 billion, which was 25% higher than the same quarter last year and well above the anticipated $6.77 billion. Additionally, the delivery segment achieved $3.77 billion, marking a 21% increase from the previous year. The logistics aspect of Uber, including its freight business, maintained steady revenue at $1.28 billion, consistent with the same quarter of the previous year. With 3.1 billion trips completed on the platform during the quarter and an increase in monthly active users to 171 million, Uber has shown consistent growth in its customer base. Looking forward, Uber projected a range of gross bookings between $42 billion and $43.5 billion for the upcoming first quarter, slightly below analyst expectations of $43.51 billion. The company also forecasted adjusted EBITDA between $1.79 billion and $1.89 billion, which is in line with general expectations but suggests a cautious outlook. CEO Dara Khosrowshahi emphasized the company's commitment to its long-term strategy as they also announced plans for launching robotaxi rides in Austin, Texas, in collaboration with Alphabet's Waymo. However, Khosrowshahi acknowledged that despite advancements, fully realizing the potential of autonomous vehicle technology would involve overcoming complex regulatory challenges and would likely take many years. Nonetheless, Uber believes that the autonomous vehicle market represents a substantial, trillion-dollar opportunity in the United States, indicating a focus on innovation for future growth. The positive revenue results, along with continued investments into technology and operations, underline Uber's effort to navigate the competitive landscape while planning for sustainable expansion.