Uber rides rebound and delivery bookings increase 128%, but revenue falls short of expectations


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Uber Technologies Inc. reported fourth-quarter and full-year results on Wednesday showing a continued recovery from the effects of the coronavirus pandemic, but it continued to lose money and its revenue fell short of expectations despite encouraging signs in both the early and early years. private trips as in delivery. Shares of Uber UBER, + 5.99% fell more than 3% in after-hours trading, after rising more than 6% in the regular session to close at $ 63.18, an all-time high.

Dara Khosrowshahi, chief executive of the San Francisco-based company, said his company is seeing a rebound in carpooling, though it varies by country and use case. He also said that Uber is recovering faster than taxis and traffic, and is gaining new passengers. “As markets come back, we see social use cases come back, 100% more year-over-year,” he said on the earnings conference call, during which he said some work-related travel has also returned, but not airport traffic. “This has changed the nature of some of our riders,” he added. “We are at 90 percent recovery in Brazil, but 30% of our great value riders haven’t even returned. So we’re seeing some pretty attractive signals. ”Khosrowshahi often referred to the“ power ”of Uber’s platform and brand, saying that it helped drive the company’s delivery business, which now has a user base of 5 million, up from 1 million last quarter. In addition to prepared food, Uber’s delivery now includes groceries, medications and other products. The company also recently announced the purchase of Drizly, the world’s leading and profitable alcohol delivery app. “In the United States, we’re growing at significant triple-digit rates,” he said. “We can’t say how we’re doing in the face of all our competition. [in delivery]. But we believe that we are more than just standing by ourselves. “Uber reported a loss in the fourth quarter of $ 968 million, or 54 cents a share, compared to $ 1.1 billion, or 64 cents a share, in the same period of the year. prior year. Its adjusted loss was $ 454 million, adjusted for share-based compensation and more. Revenues fell to $ 3.17 billion from $ 3.75 billion in the prior year quarter. Analysts surveyed by FactSet had forecast a loss of 53 cents a share on revenue of $ 3.45 billion. Gross reserves rose to $ 17.2 billion, up 16% from the previous quarter, gross delivery reserves increased 128% year-over-year and Gross mobility bookings (travel) fell 47% year-over-year. Fourth quarter travel revenue fell to $ 1.47 billion from $ 3.1 billion, a 52% decrease year-over-year. But income for deliveries increased 224% to $ 1.36 billion from $ 418 million in the prior year period. Freight revenue increased 43% to $ 313 million from $ 219 million in the fourth quarter of last year. Analysts surveyed by FactSet expected travel and delivery revenue of $ 1.76 billion and $ 1.49 billion, respectively. For the full year, Uber reported a loss of $ 6.77 billion, or $ 3.86 per share, compared to a loss of $ 8.5 billion, or $ 6.81 per share, in 2019. Revenue fell to $ 11.14 billion from $ 13 billion in 2019. Analysts surveyed by FactSet had expected a loss of $ 6.8 billion, or $ 3.87 per share, on revenue of $ 12.5 billion. Uber CFO Nelson Chai pointed to moves the company has made to try to adapt, including selling its autonomous vehicle business. Chai said he expects to deliver EBITDA profitability this year and “remains confident of breaking even sometime in 2021.” Shares of Uber are up nearly 23% so far this year. Like rival Lyft Inc. LYFT, + 4.79%, which reported fourth-quarter results on Tuesday, Uber’s stock has been on a winning streak lately, rising for nine of the past 10 days. Analysts have been optimistic about a rebound in private travel. “It’s clearly coming back, it’s just a question of how fast,” Forrester analyst James McQuivey told MarketWatch. “It’s very clear that we have hit rock bottom in terms of people’s discomfort with the pandemic.” Uber’s shares have also risen more than 80% since she and other concert companies persuaded California voters to pass Proposition 22, the measure that exempts them from having to classify their drivers and delivery workers as employees. as required by state law. When asked about the costs of providing additional salaries and benefits to drivers as promised in that ballot measure, Chai said the company has absorbed some of those costs, but has passed them on to consumers as well. See: Uber marks concert companies’ efforts to reform labor laws as’ IC + ‘Tony West, Uber’s chief legal officer, said in the call that as the company tries to expand the measure elsewhere, he is in talks with the legislators across the country. In response to a question about whether he is concerned about a lawsuit challenging the constitutionality of the measure in California, West said no. The California Supreme Court has declined to take the case, but West said he hopes the case will go back to a lower court.