Thursday, April 18, 2024

Creating liberating content

Oracle Corp’s (NYSE: ORCL)...

Oracle Corp (NYSE: ORCL) falls down to its knees, share dropped over 12.15%...

RTX Corp (NYSE: RTX)...

RTX Corp (NYSE: RTX) experienced a notable decline of -7.22%, amounting to $6.03...

GameStop Corp. (NYSE:GME) Quarter...

GameStop Corp. (NYSE: GME) to announce its second quarter fiscal 2023 results after...

Advanced Micro Devices (NASDAQ:AMD)...

Shares of Advanced Micro Devices (NASDAQ:AMD) drops 0.38% in afterhours in last trading...
HomeStock InsidersUber Technologies Inc.’s...

Uber Technologies Inc.’s (NYSE: UBER) Report Stands in Stark Contrast to Much of the Technology Sector

Uber Technologies Inc. (NYSE: UBER) inches up in pre trading session on Thursday as the company reported revenue that exceeded analysts’ expectations, indicating that rising inflation hasn’t deterred consumers from ordering more takeout or hailing a ride.

Revenue increased 49% to $8.6 billion in the fourth quarter, according to a statement issued by the San Francisco-based company on Wednesday. According to Bloomberg data, this exceeded the $8.5 billion forecasted by analysts. Gross bookings, which include ride hailing, food delivery, and freight, rose 19% to $30.7 billion, as expected.

“We finished 2022 with our strongest quarter ever, with robust demand and record margins,” said CEO Dara Khosrowshahi in a statement.

Uber’s report stands in stark contrast to much of the technology sector, which has seen behemoths like Microsoft Corp. and Alphabet Inc., as well as gig-economy rivals like DoorDash Inc. and Lyft Inc., lay off workers and scale back in response to a more uncertain economic outlook. Uber cut thousands of jobs in the early stages of the pandemic in 2020, but has recently stated that it has no plans for widespread layoffs. Uber’s headcount is expected to remain flat in 2023, according to Chief Financial Officer Nelson Chai during a conference call with analysts on Wednesday.

Earnings before interest, taxes, depreciation, and amortization were $665 million, exceeding the analyst consensus of $619.4 million. Profits were boosted by “significant reductions” in driver bonuses and higher-margin revenue from the food delivery advertising business.

Uber’s monthly active users increased 11% to 131 million, slightly less than what Wall Street expected. Nonetheless, total trips increased dramatically as customers requested rides more frequently. “The impact of the pandemic on our Mobility business is now well and truly behind us,” said Khosrowshahi. Uber’s ride-share bookings increased 31% to $14.9 billion, surpassing delivery bookings for the first time since the pandemic began.

The company reported that its ride-hailing driver base was at a “all-time high,” indicating that it has overcome a persistent driver shortage that resulted in higher fares and longer wait times for customers for much of last year. According to data from Gordon Haskett Research Advisors, which surveys ride-share prices in 30 US cities, the average price of an Uber ride was $13.91, 5% lower than last year, while Lyft fares fell 1%.

Uber Eats, the company’s food-delivery arm, generated $14.3 billion in gross bookings during the quarter, exceeding the $14.2 billion expected by analysts. According to D.A. Davidson analyst Tom White, the unit accounts for 47% of Uber’s total revenue, and newer services such as grocery, convenience, and alcohol delivery could help drive future growth.

According to Khosrowshahi, Uber’s subscription service, Uber One, doubled in members last year to around 12 million. The product has assisted Uber in retaining more customers and keeping them returning to order or hail a ride more frequently. Subscription members account for roughly 40% of delivery gross bookings in the United States.

Uber Freight, the company’s logistics arm, faces a more difficult outlook as the trucking industry slows. The division, which operates as an independent unit, connects trucking companies with those looking to transport loads. Uber Freight announced in January that it would lay off 3% of its workforce.

 

Oracle Corp’s (NYSE: ORCL) Cloud Business Faces Headwinds: What Lies Ahead

Oracle Corp (NYSE: ORCL) falls down to its knees, share dropped over 12.15% or $15.21 to trade at $111.50 in pre trading session on...

RTX Corp (NYSE: RTX) Updates 2023-2025 Outlook amid Engine Part Challenge

RTX Corp (NYSE: RTX) experienced a notable decline of -7.22%, amounting to $6.03 per share, bringing its current trading price to $77.45. The company,...

GameStop Corp. (NYSE:GME) Quarter Report: Resilience amidst Market Turbulence

GameStop Corp. (NYSE: GME) to announce its second quarter fiscal 2023 results after the market closes today. Shares were slightly down in the pre-trading...

Continue reading

Alphabet Inc. (NASDAQ: GOOGL) In Talks to Reduce European IT Jobs After ‘Disastrous’ Layoffs

Shares of Alphabet Inc. (NASDAQ: GOOGL) inches down in pre session on Thursday after big American IT businesses are suddenly discovering how hard it is to decrease personnel in Europe after announcing the greatest rounds of layoffs in their...

Apple Inc. (NASDAQ: AAPL) Unveils Appearance of Its First Retail Location in India

Shares of Apple Inc. (NASDAQ: AAPL) inches down in afterhours trading as many people rushed to get a glance of the store's black and yellow artwork, which was modeled after Mumbai's famous cabs, as the company unveiled the appearance...

Credit Suisse (NYSE: CS) and UBS Group AG (NYSE: UBS) In Flux after Probe into Credit Suisse Acquisition

Credit Suisse (NYSE: CS) and UBS Group AG (NYSE: UBS) shares revamp its position on Tuesday from previous session following the emergency merger of the two lenders was the subject of an inquiry by Switzerland's federal prosecutor. The prosecutor has...

Enjoy exclusive access to all of our content

Get an online subscription and you can unlock any article you come across.