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Uber just reported its ‘strongest quarter ever’ amid a broader tech downturn

The ride-hailing and food-delivery giant reported revenue of $8.6 billion for the last quarter of 2022, which is up 49% year over year.

Uber just reported its ‘strongest quarter ever’ amid a broader tech downturn

[Source images: Austin Distel/Unsplash; Rawpxiel]

BY Jessica Bursztynsky2 minute read

Uber’s fourth quarter was its “strongest quarter ever,” CEO Dara Khosrowshahi said early Wednesday, suggesting the company has deflected the broader tech downturn.

The ride-hailing and food-delivery giant reported revenue of $8.6 billion for the last quarter of 2022, which is up 49% year over year. Uber said gross bookings, or the amount customers paid, were up 19% year-over-year to $30.7 billion. At the same time, trips in the quarter hit an all-time quarterly high of 2.1 billion, up 19% from the same time a year ago, when the omicron COVID-19 variant dampened travel.

The number of consumers who use the platform each month also gained 11% to 131 million. Adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization, was $655 million—up $578 million year over year.

“Mobility demand and supply are rapidly improving, and we expect the business to remain resilient in a downturn,” Khosrowshahi said in prepared remarks. Delivery has also proven to stay strong, he added.

The results, which were slightly better than what Wall Street expected, indicate that Uber has staved off broader macroeconomic concerns. Shares were up more than 7% in pre-market trading. Not including that early-morning boost, the company’s stock was up more than 37% year to date.

Uber enacted a number of cost-saving measures, including layoffs, early on in 2020, a time when many tech companies started spending rapidly to grow their businesses as consumers stayed home. Khosrowshahi then warned of a potential economic decline in May 2022, telling employees to decrease spending and focus on profitability.

“Our extensive cost actions in 2020 and 2021, combined with early caution on cost growth in 2022, have allowed us to drive operating leverage,” Khosrowshahi said in his prepared remarks. “Since Q2 2022, when we adopted a more cautious stance on costs, we have added headcount very selectively, numbering in the hundreds. We will maintain this rigor throughout 2023 and beyond to deliver healthy growth with minimal headcount additions.”

Uber provided strong guidance for the first quarter of 2023, saying it continues to see strong top-line trends in January. It expects Q1 2023 trip growth to exceed 20%, the company said. Gross bookings are also anticipated to grow 20% to 24%, or $31 billion to $32 billion. It also expects adjusted EBITDA to be between $660 million and $700 million.

“After a transitional year of growth and cost-cutting, 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 said in a research note after the earnings were released.

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ABOUT THE AUTHOR

Jessica Bursztynsky is a staff writer for Fast Company, covering the gig economy and other consumer internet companies. She previously covered tech and breaking news for CNBC. More


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