Uber stock drops despite strong earnings: Uber stock falls despite strong earnings

Earnings per share beat expectations

Uber Technologies Inc. reported a wider-than-expected loss in the fourth quarter, but its revenue and earnings per share beat analysts' estimates. The company also said it expects to be profitable on an adjusted basis in 2023.

The ride-hailing giant reported a net loss of $595 million, or $1.72 per share, for the three months ended Dec. 31. That's wider than the $242 million loss, or 68 cents per share, that analysts had expected. However, Uber's revenue of $8.6 billion beat the consensus estimate of $8.4 billion.

On an adjusted basis, Uber reported earnings per share of 29 cents, beating the 26 cents that analysts had expected.

Revenue growth driven by mobility and delivery

Uber's revenue growth was driven by its mobility and delivery segments. Mobility revenue, which includes ride-hailing and food delivery, increased 23% to $4.8 billion. Delivery revenue, which includes Uber Eats and grocery delivery, increased 29% to $3.8 billion.

Looking ahead

For 2023, Uber expects to generate revenue of $39 billion to $41 billion, representing growth of 19% to 22%. The company also expects to be profitable on an adjusted basis in 2023.

Uber's stock price fell 4% in after-hours trading following the release of the earnings report.

Analysts: Uber is a long-term winner

Despite the stock price drop, analysts remain bullish on Uber. They believe that the company is a long-term winner in the ride-hailing and delivery markets.

"Uber is a long-term winner in the ride-hailing and delivery markets," said Dan Ives, an analyst at Wedbush Securities. "The company has a strong competitive position in both markets, and it is well-positioned to benefit from the secular tailwinds in these markets."