Uber beats projections, posts first profit since it became public

Uber posted its first full-year profit since going public in 2019, marking the first time the ride-hailing company has made a profit from its business.

Uber announced Wednesday that it posted a net profit of $1.43 billion in the fourth quarter after recouping $1 billion in tailwinds from investments. confirmed in release. This is a significant increase from the $595 million the company reported in the year-ago period. CNBC points out.

The post beat Wall Street expectations, the Associated Press reported, citing analysts surveyed by Zacks Investment Research.

“2023 is a turning point for Uber, and we are confident that we can continue to generate strong, profitable growth at scale,” Uber CEO Dara Khosrowshahi said in a statement Wednesday. I’ve proven I can do it.” “Our audience is bigger and more engaged than ever, and our platform enabled an average of nearly 26 million trips every day last year.”

Uber’s revenue also rose 15% year over year to $9.9 billion, slightly above Wall Street’s forecast of $9.75 billion. Uber’s total booking value rose 22% year over year to $37.6 billion, the company said.

Uber had previously made a profit on the back of investments in 2018, its final year as a private company, but Wednesday’s post marks the first time the ride-hailing company, founded in 2009, has made a profit from its operations. It was the first time.

After years of prioritizing growth over profits, the company focused on cutting costs and strengthening its food delivery division, The Wall Street Journal and The Associated Press reported.

This post comes just weeks after Uber announced: Alcohol delivery app Drizzly is shutting down At the end of March, the focus will shift to the Uber Eats strategy.

According to the Associated Press, delivery revenue rose 6% and ride-hailing segment revenue rose 34%.

“Uber’s platform advantages and disciplined investment in new growth opportunities led to record engagement and acceleration in gross bookings in the fourth quarter,” said Uber CFO Prashant Mahendra Raja. said, adding that the company will announce more details about its “strategy and capital allocation plans” next week.

Uber Technologies stock hit an all-time high of $71.90 early Wednesday, according to the Associated Press.

The Associated Press contributed.