{"id":111447,"date":"2025-02-05T17:16:22","date_gmt":"2025-02-05T13:16:22","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=111447"},"modified":"2025-02-05T17:16:25","modified_gmt":"2025-02-05T13:16:25","slug":"uber-shares-drop-6-as-q4-profit-misses-estimates-and-q1-forecast-disappoints","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/uber-shares-drop-6-as-q4-profit-misses-estimates-and-q1-forecast-disappoints\/02\/05\/market-updates\/","title":{"rendered":"Uber Shares Drop 6% as Q4 Profit Misses Estimates and Q1 Forecast Disappoints"},"content":{"rendered":"\n

<\/h3>\n\n\n\n

Uber Technologies (NYSE:UBER) shares fell 6% premarket<\/strong> on Wednesday after reporting a lower-than-expected Q4 profit<\/strong>, with rising costs and a weaker Q1 bookings forecast<\/strong> overshadowing its revenue beat.<\/p>\n\n\n\n

Q4 Earnings Highlights<\/strong><\/h3>\n\n\n\n
    \n
  • Revenue:<\/strong> $11.96 billion<\/strong> (beat expectations of $11.77 billion<\/strong>)<\/li>\n\n\n\n
  • Adjusted EPS:<\/strong> $0.23<\/strong> (missed estimates of $0.50<\/strong>)<\/li>\n\n\n\n
  • Gross Bookings:<\/strong> $44.2 billion<\/strong> (above expectations of $43.45 billion<\/strong>)<\/li>\n\n\n\n
  • Total Costs & Expenses:<\/strong> $11.19 billion<\/strong> (\u2191 20.5% YoY<\/strong>)<\/li>\n\n\n\n
  • Operating Income:<\/strong> $770 million<\/strong> (missed estimates of $1.22 billion<\/strong>)<\/li>\n<\/ul>\n\n\n\n

    Segment Performance<\/strong><\/h3>\n\n\n\n
      \n
    • Ride-hailing revenue<\/strong>: \u2191 25% YoY<\/strong> (boosted by office commutes and business demand)<\/li>\n\n\n\n
    • Delivery revenue<\/strong>: \u2191 21% YoY<\/strong> (helped by strong holiday season demand)<\/li>\n\n\n\n
    • Uber for Business<\/strong>: \u2191 50% in Q4 bookings<\/strong> (boosted by return-to-office mandates)<\/li>\n\n\n\n
    • Uber for Teens<\/strong>: Now available in ~50 countries<\/strong><\/li>\n<\/ul>\n\n\n\n

      Key Concerns Impacting Stock<\/strong><\/h3>\n\n\n\n
        \n
      1. Lower Q4 Profitability<\/strong>: Despite strong revenue growth, higher costs (+20.5%) weighed on margins<\/strong>, leading to an EPS miss<\/strong>.<\/li>\n\n\n\n
      2. Weak Q1 2025 Forecast<\/strong>: Uber expects lower-than-expected gross bookings<\/strong>, with the strong US dollar impacting international revenue<\/strong>.<\/li>\n\n\n\n
      3. Rising Expenses<\/strong>: Insurance costs have been a significant burden for ride-hailing firms.<\/li>\n<\/ol>\n\n\n\n

        CEO Strategy for 2025<\/strong><\/h3>\n\n\n\n

        Uber CEO Dara Khosrowshahi<\/strong> aims to drive growth by:<\/p>\n\n\n\n

          \n
        • Offering better customer rates<\/strong> to retain users.<\/li>\n\n\n\n
        • Slowing insurance cost hikes<\/strong> to reduce financial strain.<\/li>\n<\/ul>\n\n\n\n

          Market Reaction & Outlook<\/strong><\/h3>\n\n\n\n
            \n
          • Investors are concerned about Uber’s profitability trends<\/strong>, despite strong demand growth<\/strong>.<\/li>\n\n\n\n
          • The company\u2019s cost-control measures and expansion into new markets<\/strong> will be closely watched in 2025.<\/li>\n\n\n\n
          • The strong dollar remains a headwind<\/strong> for international revenue.<\/li>\n<\/ul>\n\n\n\n

            With the stock down 6% premarket<\/strong>, Uber may need to convince investors that its growth strategy can improve profitability<\/strong> in the coming quarters.<\/p>\n","protected":false},"excerpt":{"rendered":"

            Uber Technologies (NYSE:UBER) shares fell 6% premarket on Wednesday after reporting a lower-than-expected Q4 profit, with rising costs and a weaker Q1 bookings forecast overshadowing its revenue beat. Q4 Earnings Highlights Revenue: $11.96 billion (beat expectations of $11.77 billion) Adjusted EPS: $0.23 (missed estimates of $0.50) Gross Bookings: $44.2 billion (above expectations of $43.45 billion) …<\/p>\n","protected":false},"author":9,"featured_media":69452,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[39,36],"tags":[7113,7826,516,6929],"class_list":["post-111447","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-global-stock-markets","category-market-updates","tag-earnings","tag-q3","tag-sp-500","tag-uber"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/111447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=111447"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/111447\/revisions"}],"predecessor-version":[{"id":111448,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/111447\/revisions\/111448"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/69452"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=111447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=111447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=111447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}