(Reuters) -Uber Technologies Inc on Wednesday reported its second quarterly working profit as demand for its ride-hailing service approached pre-pandemic ranges and its meals delivery enterprise turned worthwhile for the primary time.
Shares had been up almost 6% in after-hours buying and selling.
The firm’s first-quarter outlook fell in need of Wall Street expectations as the Omicron coronavirus variant dampens journey, however Uber Chief Executive Dara Khosrowshahi stated enterprise had began choosing up into February.
“While the Omicron variant started to impression our enterprise in late December, mobility is already beginning to bounce again, with gross bookings up 25% month-on-month in the latest week,” Khosrowshahi stated in an announcement.
Uber’s earnings launch got here shortly earlier than the corporate’s first-ever investor day, to be held on Thursday in New York. Executives on Wednesday stated they would supply extra particulars on their long-term technique and the way Uber may increase its present enterprise.
For the fourth quarter of 2021, Uber reported $5.8 billion in income.
The California-based firm reported adjusted earnings earlier than curiosity, taxes, depreciation and amortization, a measure that excludes one-time prices, primarily stock-based compensation, of $86 million for the quarter ended Dec. 31, considerably forward of analyst expectations for $62 million.
That in contrast with a loss on the identical foundation of $454 million a yr in the past. It marked the corporate’s second worthwhile quarter because it first reported optimistic adjusted EBITDA within the third quarter.
Uber’s delivery unit, largely made up of its Uber Eats restaurant service, posted its first adjusted EBITDA profit of $25 million, exhibiting Uber’s means to scale the as soon as loss-making operation towards strong competitors.
Steady delivery bookings sign that the rebound in rides has not come on the expense of meals delivery, with shoppers sticking to the service even as the economic system reopens.
Uber executives advised traders on a convention name that the corporate was more and more capable of acquire new prospects for its Eats platform by way of its ride-hail enterprise because the firm merged its companies into one app.
“The diversification is admittedly coming into play,” Khosrowshahi stated, including that its enterprise remained resilient even throughout the Omicron wave because of delivery orders.
Khosrowshahi stated the corporate had to enhance its restaurant base within the U.S. suburbs to meet up with bigger delivery rival DoorDash.
Rides restoration within the fourth quarter was pushed by strong demand for airport journeys, which tripled in comparison with final yr. Airport rides are among the many most worthwhile routes for Uber.
Uber additionally posted web revenue of $892 million, as it revalued its stakes in Southeast-Asian Grab and self-driving firm Aurora Innovation Inc, only a quarter after it reported a $2.42 billion web loss pushed by its stake in Chinese ride service Didi and stock-based compensation.
The firm considerably elevated its advertising spend within the fourth quarter, upping gross sales and advertising bills by 36% on a quarterly foundation. Uber launched a number of massive Uber Eats promoting campaigns within the U.S. market on the finish of final yr.
Uber forecast lower-than-expected adjusted profit within the first three months of 2022, as the Omicron coronavirus variant dampened journey demand in January. Smaller U.S. rival Lyft Inc issued the same warning on Tuesday.
Uber forecast first-quarter adjusted EBITDA to be between $100 million and $130 million, in contrast with analysts’ estimates for almost $150 million.
(Reporting by Tina Bellon in Austin, Texas, and Nivedita Balu in BengaluruEditing by Ben Klayman and Matthew Lewis)
