Uber delivers stellar Q4 results; set to be cash-flow positive in 2022

Published by MEXEM News

July 25, 2024 2:51 PM

(GMT+2)

Heading into Uber's (NYSE:UBER) fourth-quarter earnings report, investors were already bracing for an Omicron-related downturn in its Mobility segment. And although Covid impacted the ride-hailing giant's business, the company delivered stellar results on the heels of a recovering economy and returning demand for its services.

‍

Uber's gross bookings rose 51% year-over-year to $25.9 billion, including Mobility gross bookings and Delivery gross bookings of $11.3 billion and $13.4 billion, respectively.

‍

Adjusted EBITDA projections of between $100 million and $130 million equate to a sequential growth of 33% at the midpoint. More notably, after years of unprofitability, the Delivery segment generated positive adjusted EBITDA for the first time.

‍

The company, founded in 2009 and went public in 2019, has been under increasing pressure from investors to show it has a path to sustainable future profits.

‍

Last year, the company posted a loss of $774 million. Uber, however, said it is expecting adjusted EBITDA to be around $5 billion in 2024. According to Chief Financial Officer Nelson Chai, the company expects to be cash-flow positive by the end of this year, outlining new bookings and earnings targets for investors Thursday.

‍

It would mark the first time its underlying business generates more cash than it spends if Uber meets that goal.

‍

Quarterly revenue jumped 83% year-over-year to $5.78 billion, surpassing Street estimates of $5.34 billion. Similarly, for the full-year fiscal 2021, Uber's revenue advanced 57% to $17.45 billion.

‍

TURNING TO WALL STREET

‍

Analyst James Jee from Mizuho Securities has an optimistic view of Uber.

‍

He recently said that "On the upcoming Analyst Day, we believe that management would highlight long-term profitability given its strong position in Mobility and disciplined investments in Delivery." He added, "We expect the company could exit markets where it does not have category-leading positions for Grocery delivery and invest back in core markets to optimize its path to positive margins.”

‍

On Thursday, shares in Uber fell 6%.

‍

To invest in Uber's stock visit MEXEM.

‍

Ready to get started?

Start trading with the full package, from state of the art platform to free tool and favorable transaction fees.

JOIN US NOW

All investments involve risks, including the possible loss of capital

©️ MEXEM AFRICA (PTY) LTD (MEXEM AFRICA) is an authorized financial services provider (FSP 48325). All trades on the MEXEM AFRICA platform are subject to the legal terms and conditions to which you agree to be bound.

The MEXEM AFRICA platform enables users to invest in securities. MEXEM AFRICA acts as an agent for the issuance of whole shares, where the investor is the registered owner of those shares, entitled to dividends, participation in corporate actions, and all the economic benefits and risks associated with share ownership.

The availability of any share on the MEXEM AFRICA platform is based on various factors but is not an indication of value and does not mean that any share is an appropriate investment for you. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance.
‍
The availability of any share on the browse shares page does not necessarily indicate any contractual relationship between MEXEM AFRICA and the listed company or the payment of fees for services. Brand logos are owned by the respective companies and not by MEXEM AFRICA. The use of a company’s brand logo does not represent an endorsement of MEXEM AFRICA by the company, nor an endorsement of the company by MEXEM AFRICA, nor does it necessarily imply any contractual relationship. Further investment disclosures are available on the MEXEM AFRICA website.

Read our Forms & Disclosures.