This past week, Uber announced a major company milestone: reaching their first full fiscal year of profitability since going public in 2019.
As of Wednesday morning, the San Francisco-based company Uber Technologies Inc. saw its stock price rise to $71.90, an all-time high
“2023 was an inflection point for Uber,” CEO Dara Khosrowshahi said in an earnings call.
During Uber’s last profitable stretch pre-IPO, the company was making money from investments, not from operations. However, the ride-sharing service is now making money from operations, too.
The company saw some promising trends in last year’s fourth-quarter earnings. Uber generated $1.43 billion in net income for Q4, translating to 66 cents per share, dramatically surpassing experts’ projections of 15 cents per share. Quarterly revenues hit $9.94 billion, whereas predictions averaged $9.75 billion.
Uber suffered during the COVID-19 pandemic due to low demand for ride-sharing services, but at the same time, the company saw a higher demand for the delivery app Uber Eats. Now,
This past quarter, rideshare revenues increased by 34% as delivery grew 6% over prior year metrics.
Daily average Uber trips are holding strong company-wide, Khosrowshahi. said
“Our audiences are larger and more engaged than ever, with our platform powering an average of nearly 26 million daily trips last year,” Khosrowshahi said.
The company saw $37.6 billion in gross bookings, a 22% increase from the prior year. In 2023, Uber generated $37.28 billion in revenue, and it turned a profit of $1.89 billion at 87 cents per share.
Moving forward, Uber aims to consolidate operations under core rideshare and delivery segments. They’ve already announced a plan to discontinue Drizly, the liquor delivery app, as part of their effort to drop their more peripheral services.
The Associated Press contributed to this article.