Ride-hailing giant Uber Technologies reported fourth-quarter earnings that handily beat estimates while revenue and gross bookings edged by views amid improving driver supply. Uber stock wavered on the news amid high expectations.
On the stock market today, Uber stock fell in morning trading but clawed back. Further, Uber stock edged up 0.3% to close at 70.65.
Uber hosts an analyst day on Feb. 14. At the event, it may update plans for capital returns to shareholders. A share repurchase plan is one option.
"Given the company's current capital structure, a majority portion of annual free cash flow in the form of a buyback wouldn't surprise us and would be helpful," said RBC Capital analyst Brad Erickson in a report.
Gross Bookings Key Financial Metric
Uber earnings for the quarter ending Dec. 31 were 66 cents a share on an adjusted basis, up 127% from a year earlier. Investment gains boosted profits, the company said. Analysts had projected adjusted EPS of 16 cents.
Revenue climbed 15% to $9.9 billion, topping estimates of $9.76 billion.
Gross bookings grew 22% to $37.6 billion. That edged by estimates of $37.12 billion. Gross bookings are the total dollar value of fares charged to riders for transportation, food delivery and other services.
"In the quarter, both monthly active platform consumers (MAPCs) and monthly trips per MAPC hit all-time highs," said William Blair analyst Ralph Schackart in a report. "Trip growth of 24% grew faster than gross bookings. Gross bookings of $37.6 billion were in line with street expectations."
At Truist Securities, analyst Youssef Squali said in a report: "Total trips came in at a record high of 2.60 billion, up 24% year-over-year, and exceeded consensus expectations of 2.56 billion, showing that Uber is continuing to demonstrate healthy trip growth despite Lyft lowering its prices."
The company also reported adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA, of $1.3 billion. Analysts expected Uber to report EBITDA of $1.26 billion.
Free cash flow came in at $768 million in Q4, down from $966 million in the September quarter.
Uber Stock: Q1 Guidance Issued
For the first quarter of 2024, Uber expects gross bookings in a range of $37 billion to $38.5 billion. It forecast EBITDA of $1.30 billion at the midpoint of guidance. Analysts expected gross bookings of $37.43 billion and adjusted EBITDA of $1.26 billion.
Heading into the Uber earnings report, the stock had climbed 13% in 2024. Uber stock had advanced 105% over the past 52 weeks.
Uber stock's Relative Strength Rating score is at 97 out of a best-possible 99, indicating it is significantly outperforming the market.
Meanwhile, Uber stock holds an IBD Composite Rating of 87 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better.
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
