Uber Posts Higher Revenue and Adjusted Profit as People Spend More on Rides

Adjusted earnings—a figure that excludes some expenses—was $665 million, up from $86 million a year earlier. By standard accounting measures, Uber had a net income of $595 million, down from $892 million a year ago. 

Analysts surveyed by FactSet on average had predicted revenue of $8.51 billion, a net loss of $323 million and adjusted earnings of $624 million. 

Uber’s gross bookings—the value of transactions made on the app—grew 19% during the quarter to $30.7 billion.

“We are entering the year with great momentum, with mobility demand accelerating and delivery remaining resilient,”

Dara Khosrowshahi,

chief executive of Uber, said in prepared remarks.

For the current quarter, Uber expects bookings of between $31 billion and $32 billion. Wall Street had forecast $31.17 billion.   

One of its closest-watched financial metrics, adjusted earnings, should come in between $660 million and $700 million this quarter, the company said. Wall Street was projecting $624 million. This figure strips out some expenses, such as stock-based compensation, that executives consider to be outside a company’s core operations. Uber has long pointed to it to signal a path to profits.

Uber shares have outperformed the broader market over the past 12 months, falling around 7% while the tech-heavy Nasdaq Composite Index has fallen 14%. 

It is a challenging time for some tech companies. While many flourished during the pandemic as life and work shifted more to the internet, they are now projecting slower growth ahead, spooking investors. Sales of personal computers and other gadgets are falling. Consumers are trimming their spending and business customers are tightening their budgets. 

Growth has cooled in recent quarters for Uber’s delivery arm, Uber Eats, which did brisk business during the pandemic. Last quarter Uber’s delivery business rose 21% year-over-year, after nearly doubling in some quarters earlier in the health crisis. 

A looming question for Uber is whether consumers, squeezed by inflation and worried about a possible recession, will continue to spend as much as they used to on food delivery and rides.

One potential upside to the tough economic environment: The company said it ended the last quarter with a record 5.4 million drivers and couriers. Uber and its ride-share rival

Lyft Inc.

had been grappling with a driver shortage until recently, an imbalance that had pushed ride prices to record highs.

Write to Sarah E. Needleman at [email protected]