Uber’s Q4 2024 Financial Results: An Overview

On Wednesday, Uber Smart Transport Services released its financial results for the fourth quarter of 2024, surpassing revenue expectations while providing cautious guidance for the upcoming quarter, resulting in a decline in its stock price as trading commenced on Wall Street.

Key Financial Highlights

• Earnings Per Share: $3.21, exceeding the expected $0.50.
• Quarterly Revenue: $11.96 billion, above the anticipated $11.77 billion.
• Net Income: $6.9 billion ($3.21 per share), compared to $1.4 billion or $0.66 per share in Q4 2023.

Despite the positive revenue performance, Uber shares faced a dip at the open of Wednesday’s trading session. Notably, Uber saw a 20% increase in quarterly revenues year-over-year, up from $9.9 billion during the same period in 2023.

The reported net income of $6.9 billion includes a significant tax adjustment benefit of $6.4 billion, along with a pre-tax interest gain of $556 million from the re-evaluation of stock investments. Total bookings during the fourth quarter reached $44.2 billion, surpassing analysts’ predictions of $43.49 billion.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter stood at $1.84 billion, a 44% year-over-year increase, aligning with analysts’ forecasts.

Guidance for Q1 2025

As for the first quarter of 2025, Uber projects total bookings between $42 billion and $43.5 billion, which falls short of the $43.51 billion consensus estimate. Furthermore, projected adjusted EBITDA ranges from $1.79 billion to $1.89 billion, slightly below the expected $1.85 billion.

“Our performance was supported by rapid innovation and execution on multiple fronts, including the significant opportunity presented by autonomous vehicle technology,” stated Uber’s CEO, Dara Khosrowshahi. “We enter 2025 with clear momentum and will continue to execute our long-term strategy.”

Innovation and Expansion Plans

In a notable development, Uber announced plans for the general launch of autonomous taxi services in Austin, Texas, through its partnership with Alphabet. Starting Wednesday, customers in Austin can register their interest via the Uber app to enhance their chances of securing a Waymo ride at launch.

User Engagement and Operational Statistics

During the fourth quarter, Uber marked 3.1 billion trips on its platform, reflecting an 18% increase year-over-year. The number of monthly active users reached 171 million, up 14% from 150 million in the previous year.

Segment Performance

The company’s key business segments demonstrated robust growth, with total bookings in the mobility sector amounting to $22.8 billion, an 18% rise year-over-year. Meanwhile, the delivery segment also reported total bookings of $20.1 billion, marking an 18% annual increase.

Uber’s mobility sector achieved revenues of $6.91 billion, surpassing expectations of $6.77 billion, while the delivery segment generated $3.77 billion, exceeding analyst projections of $3.66 billion. However, the logistics segment saw revenues hold steady at $1.28 billion, slightly below the expected $1.31 billion. Khosrowshahi has previously highlighted the shipping sector as particularly challenging, given consumers’ increased spending on services over goods since the onset of the COVID-19 pandemic.

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