What happened
Shares of Uber Technologies (UBER -0.32%) jumped today after the ride-sharing leader issued a strong fourth-quarter earnings report and beat estimates on the top and bottom lines.
The stock closed up 5.5% on the news.
So what
The fourth-quarter reports showed that Uber's efforts to streamline the business and rein in costs seem to be paying off.
Gross bookings in the quarter rose 19% to $30.7 billion, driving revenue up 49%, or 59% on a constant-currency basis, to $8.6 billion. The discrepancy between bookings and revenue was due to a change in the business model in its U.K. mobility business and the acquisition of Transplace by Uber Freight. The revenue figure topped estimates of $8.48 billion.
Other key metrics also showed solid growth in the business as trips rose 19% to 2.1 billion and monthly active customers increased 11% to 131 million. Profitability also ramped up as adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped from $86 million to $665 million. On a GAAP basis, the company reported an operating loss of $142 million, and its adjusted earnings per share of $0.29 was well ahead of estimates of a loss of $0.18 per share.
CEO Dara Khosrowshahi said, "We ended 2022 with our strongest quarter ever, with robust demand and record margins. Our global scale and unique platform advantages position us well to accelerate this momentum into 2023."
Now what
COVID was a major setback for Uber, but the company now seems on track to make a full recovery. Looking ahead to 2023, it expects gross bookings to increase 20% to 24% on a constant-currency basis to $31 billion-$32 billion. It also called for adjusted EBITDA of $660 million to $700 million.
The company is also seeing promising growth in new businesses like in-app ads, which is expected to bring in $1 billion in revenue in 2023.
Management also said it was aiming to deliver a GAAP operating profit in 2023. That would represent a major milestone for Uber and should drive the long-suffering stock higher.
