Uber Reports Record Q4 2024 Revenue but Faces Investor Concerns Over Guidance
Uber Technologies (NYSE:UBER) delivered impressive Q4 2024 results, reporting an 18% year-over-year increase in gross bookings to $44.2 billion, driving a 20% surge in total revenue to $12.0 billion. This surpassed Wall Street expectations by $190 million, highlighting Uber’s continued expansion across mobility and delivery segments.
Key Financial Highlights
- Gross Bookings Growth: Increased by 18% year-over-year, reaching $44.2 billion.
- Revenue Performance: Total revenue jumped 20% to $12.0 billion, beating consensus estimates by $190 million.
- Adjusted EBITDA: Reported at $1.84 billion, slightly missing analyst expectations of $1.85 billion.
- Operating Income: Reached $770 million, falling short of the anticipated $1.15 billion.
- Net Profit: Surged to $6.9 billion ($3.21 per share), primarily due to a $6.4 billion tax valuation adjustment.
CEO Dara Khosrowshahi noted, “Uber ended 2024 with our strongest quarter ever, as growth accelerated across MAPCs, trips, and Gross Bookings.” He emphasized that the company enters 2025 with strong momentum, fueled by continued innovation and execution.
Investor Reaction and Q1 2025 Outlook
Despite Uber’s record quarter, investor sentiment was tempered by lower-than-expected Q1 2025 guidance:
- Projected Gross Bookings: Forecasted at $42 billion to $43.5 billion, with a midpoint of $42.8 billion, slightly below the consensus estimate of $43.5 billion.
- Adjusted EBITDA Guidance: Expected to range between $1.79 billion and $1.89 billion, with a midpoint slightly below analysts’ forecast of $1.85 billion.
Concerns over currency headwinds and slightly lower-than-expected growth projections contributed to a premarket decline of Uber’s stock by as much as 10%, before recovering to a 5% loss. In response, Lyft (NASDAQ:LYFT) also saw a 2.6% dip in its stock price.
Market Response and Strategic Outlook
Uber’s continued revenue growth and expanding market presence signal a strong long-term trajectory. However, near-term concerns around macroeconomic factors and booking guidance may impact short-term investor confidence. As the company advances into 2025, its focus remains on leveraging innovation and strategic execution to sustain momentum in both mobility and delivery sectors.
