Topline
Uber smashed expectations in its latest quarterly financials, with CEO Dara Khosrowshahi declaring it the ride-hailing company’s “strongest quarter ever,” as shares speed toward their highest price since last February.
Uber shares are down nearly 20% from its 2019 IPO.
Key Facts
Uber reported $8.61 billion in sales over the last three months of 2022, beating the analyst consensus of $8.51 billion according to Factset, and a net income of -$161 million in its core business, easily beating the consensus estimate of -$329 million.
The company booked $4.2 billion in revenue from its core ride-hailing business, $2.9 billion from its Uber Eats and Postmates delivery services and $1.5 billion from its Uber Freight trucking segment.
Perhaps most intriguing to investors was Uber’s vast improvement in a core profitability metric: The company reported $665 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) last quarter, up $579 million from the same timeframe in 2021.
Uber shares rallied 7.5% to $37.53 in early trading, and the stock is now up nearly 50% year-to-date.
Other gig economy stocks also rallied Wednesday, with Lyft and DoorDash each rising about 3%, with 65% and 30% respective gains year-to-date.
Crucial Quote
“We are seeing a leaner Uber finally hitting the inflection of growth and EBITDA levels the Street had only dreamed of a few years ago,” Wedbush analyst Dan Ives wrote in a Wednesday note to clients. Last quarter’s “monster EBITDA beat” was the “star of the show” in the report, added Ives.
Key Background
Launched in 2009, Uber quickly gained popularity and became one of the most successful start-ups of the 21st century, going public in 2019 at a roughly $80 billion valuation, the third-largest initial public offering ever. But investors soured on the company’s inability to turn a profit, with Uber shares down about 20% from its IPO price of $45, compared to a roughly 40% gain for the S&P 500 during the timeframe. Uber shares have gone for a wild ride in recent years, hitting an all-time high of $63 in February 2021 before sinking to as low as $19.90 last summer and then staging a steady comeback.
Further Reading
Gig companies are now obsessed with profits—not just revenue growth, says analyst (Yahoo Finance)
Uber by the numbers: A timeline of the company’s funding and valuation history (PitchBook)
Source: https://www.forbes.com/sites/dereksaul/2023/02/08/uber-tests-12-month-high-after-reporting-strongest-quarter-ever/