As you can probably imagine, mobility companies have suffered over the pandemic as people adapted to new home-based restrictions. Uber – a dominant name in the mobility industry, released its Q4 earnings after market close on Wednesday; illuminating that the company is starting to bounce back from travel cutbacks amidst Omicron fears. Currently, UBER stock is trading with a 5% gain in Thursday premarket.
The company reported an EPS of $0.44, and revenue of $5.78B, beating analyst revenue of $5.34B. Uber also reported a net income of $892M, including a $1.4B net benefit, pretax, relating to the company’s equity investments. Without this, Uber posted an adjusted loss of $0.26 per share, beating the Wall Street consensus of $0.35 per share. All in all, adjusted EBITDA came out at $86M.
Company revenue fell back on the reliance of Uber Eats during the tougher times of 2021, with food delivery now being incredibly popular. In Q4, revenue from the company’s mobility sector was posted at $11.3B, whereas revenue from delivery came out at $13.4B – up 24% year-over-year.
Uber CEO, Dara Khosrowshahi, expressed her confidence in the coming months:
“While the Omicron variant began to impact our business in late December, Mobility is already starting to bounce back, with Gross Bookings up 25% month-on-month in the most recent week”
With Omicron headwinds easing and airport bookings starting to recover, Uber should be ready for a return to traditional revenue patterns. Uber’s ultrafast delivery model provided a much-needed backbone for the company in a difficult time for mobility and travel, but as the company bounces back in the coming months; we can expect strong growth to follow.
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.