Uber Disappoints Despite Record Revenue, Outlook Disappoints

Company shares fall as profit outlook falls short of expectations

Ride-hailing giant Uber reported record revenue in its latest quarterly results, but its outlook for the current quarter disappointed investors, sending shares down in after-hours trading.

Uber reported revenue of $8.6 billion in the fourth quarter, up 49% year-over-year. This beat analysts' expectations of $8.48 billion. However, the company's adjusted earnings per share of 29 cents fell short of the 38 cents that analysts had forecast.

Uber's outlook for the current quarter also fell short of expectations. The company said it expects to generate revenue of between $8.9 billion and $9.1 billion, while analysts had forecast revenue of $9.3 billion.

The disappointing outlook was due in part to Uber's plans to invest heavily in its self-driving car program. The company said it expects to spend $1 billion on the program this year, up from $768 million in 2022.

Investors were also concerned about Uber's profitability. The company reported an adjusted EBITDA loss of $595 million in the fourth quarter, wider than the $474 million loss that analysts had forecast.

Uber's stock price fell more than 5% in after-hours trading following the release of the earnings report.

Analysts' reactions

Analysts were mixed in their reactions to Uber's earnings report. Some praised the company's strong revenue growth, while others expressed concern about its profitability and outlook.

"Uber's revenue growth is impressive, but the company's profitability is still a concern," said Dan Ives, an analyst at Wedbush Securities.

"Uber is investing heavily in its self-driving car program, but it's unclear when this investment will start to pay off," said Toni Sacconaghi, an analyst at Bernstein Research.

Conclusion

Uber's latest earnings report was a mixed bag. The company reported strong revenue growth, but its profitability and outlook disappointed investors. It remains to be seen whether Uber's investment in self-driving cars will pay off, but for now, the company's stock price is likely to remain under pressure.