Uber Surges with 20% Revenue Growth but Forecasts Clouded by Strong Dollar Impact

Uber Technologies Inc. recently reported its fourth-quarter earnings, surpassing expectations with increased revenues driven by a surge in commuting and strong demand in its delivery segment during the holiday season. However, the company fell short of projections for current quarter bookings, aligning with broader U.S. corporate concerns over the impact of a strong dollar on upcoming quarterly performance in 2025.

Uber, a dominant player in the North American ride-hailing market, has been striving to convince investors of its potential for further growth. This involves expanding its user base to include more businesses and teenagers, as well as tapping into less saturated markets. The company reported a notable 50% increase in bookings related to returning office workers in the last three months of 2024, along with similar growth figures for its Uber for Teens service, now available in approximately 50 countries.

Overall, Uber's ride-hailing revenue rose by 25%, while delivery revenue saw a 21% increase, both exceeding expectations. Total revenue for the company grew by 20.3% year-over-year to $11.96 billion, surpassing the average analyst forecast of $11.77 billion. Net income was $6.88 billion, significantly boosted by a $6.4 billion tax valuation release.

Looking ahead, Uber projects its first-quarter bookings to range between $42 billion and $43.5 billion, factoring in a 5.5 percentage point impact from a strong dollar. The company anticipates adjusted EBITDA for the first quarter to be between $1.79 billion and $1.89 billion, slightly below the analyst estimate of $1.85 billion. CEO Dara Khosrowshahi highlighted intentions to drive growth by keeping customer prices competitive, intending only to pass on insurance cost increases, which are a major expense for ride-hailing companies.

Uber continues to position itself as a key contender in the autonomous taxi space, announcing that Waymo, a subsidiary of Alphabet, will launch its self-driving taxis in Austin, Texas, exclusively on Uber's platform next month. Meanwhile, Tesla CEO Elon Musk has indicated plans to test the company's autonomous vehicle technology in Austin beginning in June, though details on the rollout of a paid service remain unspecified.