WionDrive News Desk 
Uber Technologies has unveiled its forecast for quarterly core profit and gross bookings, surpassing expectations, and announced robust results for the holiday quarter, buoyed by heightened demand in its ride-sharing and food delivery sectors.
Uber recorded its first annual net profit since going public, attributed to improved user retention and successful initiatives such as memberships, corporate travel, and advertising.
The company’s upcoming investor day on February 14th promises discussions on capital allocation plans, igniting anticipation for potential buyback initiatives, prompting a nearly 2% surge in its shares.
CEO Dara Khosrowshahi, hinting at potential buybacks and dividends back in September, signalled the company’s intention to explore these avenues further.
Uber’s CFO, Prashanth Mahendra-Rajah, attributed the impressive performance to the company’s platform advantages and strategic investments in new growth opportunities, resulting in record engagement and accelerating gross bookings in the fourth quarter.
For the quarter ending March, Uber anticipates adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) ranging from USD 1.26 billion to USD 1.34 billion, aligning with analyst expectations.
Moreover, the company’s gross bookings forecast of USD 37 billion to USD 38.5 billion surpasses estimates, indicating continued momentum in its core businesses.
These forecasts follow robust results in the seasonally strong October-December period, with revenue surging 15% to USD 9.9 billion and gross bookings rising 22% to USD 37.6 billion, exceeding Wall Street projections.
Uber’s net profit nearly tripled to USD 1.43 billion in Q4, primarily driven by a USD 1 billion net pre-tax benefit resulting from the re-evaluation of its equity investments, culminating in a net profit of USD 1.89 billion for fiscal year 2023.
The ride-share business witnessed a remarkable 34% revenue growth, fueled by outsized trip growth in Latin America and Asia Pacific markets, while the delivery business recorded a 6% revenue increase, marking its highest gross bookings growth in two years.
Analysts, including Brad Erickson from RBC Capital Markets, noted that Uber’s commitment to addressing capital return plans at the investor day reflects management’s responsiveness to investors’ priorities, sparking optimism among stakeholders.
