Uber Technologies Inc forecast higher-than-expected quarterly core profit and gross bookings and reported better-than-market holiday quarter results on Wednesday, helped by increased demand at its ride-sharing and food delivery businesses.
The company reported its first annual net profit as a public company as user retention improved, also helped by initiatives such as memberships, business travel and advertising.
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However, shares fell more than 1% as Uber delayed announcements related to its capital allocation plan until its investor day on February 14. Chief Executive Dara Khosrowshahi said in September that Uber was considering buybacks and dividends.
“Uber’s platform strength and disciplined investment in new growth opportunities led to record engagement and accelerated gross bookings in the fourth quarter,” Chief Financial Officer Prashanth Mahendra-Rajah said.
The company forecast adjusted earnings before interest, taxes, depreciation and amortization of $1.26 billion to $1.34 billion for the quarter ended in March, compared with expectations of $1.26 billion, according to London Stock Exchange Group.
Uber’s gross bookings forecast was $37 billion to $38.5 billion, higher than expectations of $37.33 billion.
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The outlook follows strong results in the seasonally strong October-December period. Revenue rose 15% to $9.9 billion and gross bookings rose 22% to $37.6 billion, beating Wall Street targets.
Fourth-quarter net income nearly tripled to $1.43 billion, as a revaluation of the company’s equity investments led to a $1 billion pretax net gain.
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Uber said revenue from its core ride-sharing business grew 34%, driven in part by “significant growth in travel” in Latin America and Asia-Pacific markets.
Delivery revenue rose 6%, while the segment’s gross bookings growth was the highest in two years.
“Management is no longer discussing the issue today, saying it will discuss capital returns more formally at the Investor Day,” said Brad Erickson, an analyst at RBC Capital Markets. He added, These plans are a top priority for investors.