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Uber Q4 2022 earnings


MongiIG

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Uber is scheduled to report its fourth quarter (Q4) earnings after the market closes on Wednesday, the 8th of February, 2023.

 

BG_uber_driver_map_app_8776867.jpgSource: Bloomberg

 

 Tony Sycamore | Market Analyst, Australia | Publication date: Friday 03 February 2023 

When will Uber report its latest earnings?

Uber is scheduled to report its fourth quarter (Q4) earnings after the market closes on Wednesday, the 8th of February, 2023.

What should traders look out for?

In Q3 of 2022, Uber recorded a net loss of $1.2 billion, $512 million of which was attributed to revaluations of Uber’s equity investments. The company beat analysts’ estimate for revenue, which grew by 72% year over year to $8.3 billion, and reported adjusted EBITA of $516 million, exceeding its guidance of $440 - $470 million.

Uber CEO Dara Khosrowshahi noted that behind the strong performance, several tailwinds were in place, including “cities reopening, travel booming, and, more broadly, a continued shift of consumer spending from retail to services.”

With those trends expected to continue, Khosrowshahi provided upbeat guidance for Q4 and said he expected gross bookings to grow in Q4 by between 23% and 27% year over year (YoY) and an adjusted EBITA of $600 million to $630 million.

How does Uber measure its performance?

Uber has three main operating segments under which the company then measures its performance via the following metrics. Gross Bookings, Revenues and Adjusted EBITDA, all of which will be scrutinised for growth when the company reports.

The Mobility segment is Ubers flagship ride-hailing business which connects consumers with drivers. In Q3, Revenues grew by 73% to $3.8 billion YoY for an Adjusted EBITA of $898 million.

The Delivery segment provides a platform for consumers to search for food and either pick up the meal at the restaurant or have it delivered. In Q3, Revenues from this segment grew 24% YoY to $2.8 billion for an Adjusted EBITA of $181 million.

The Freight segment connects carriers with shippers on the Uber platform and provides upfront and transparent pricing. In Q3, Revenues grew 336% YoY for an Adjusted EBITA of $1 million.

 

Uberq4tony13223.png

 

Drilling down further the market will also be looking closely for:

  • An increase in the number of monthly active platform users (which grew by 14% YoY to 124 million in Q3)
  • An increase in the number of trips (which increased by 19% YoY to 1.95 billion trips in Q3)
  • The trend of drivers returning to drive for Uber continues. An estimated 80% of the drivers who left the service during the pandemic have returned
  • Uber One subscription adoption levels.

 

 

Uberq4tony23223.png

Uber Q4 earnings – what to expect

  • Revenue: $8.47 billion vs $8.34 (Q3 2022)
  • EPS: -$0.18c vs $-0.61c (Q3 2022)
  • EBITA: - $614m vs $516m (Q3 2022)

 

Uber sales revenue chart

 

Uberq4tony33223.pngSource: Trading Economics

Uber shares technical analysis

The share price of Uber fell almost 70% from the $64.05 high it traded to in February 2021 to a low of $19.90 in June 2022, the equivalent of $60 billion in shareholder capital being wiped.

Uber weekly chart

 

Uberq4tony43223.pngSource: TradingView

Uber has experienced better fortunes in 2023, as the share price surged by almost 27% above the downtrend from September's $34.33 high. A performance that left the Nasdaq's 10.62% in its wake.

Presuming Uber breaks higher above the downtrend can be sustained in the coming sessions, it allows for a test of the September $34.33 high before the $37.45 high of March 2022.

Mindful that a sustained break above a band of resistance at $37.45/$38.10 is needed to suggest that the rally from the June 2022 low of $19.90 is impulsive rather than a bear market rally.

Should Uber's share price fall back below the 200-day moving average, currently at $27.05, it would be an initial indication that the corrective rally is complete and that the downtrend has resumed.

Uber daily chart

 

Uberq4tony53223.pngSource: TradingView

Summary

Uber is scheduled to report its fourth quarter (Q4) earnings after the market closes on Wednesday, the 8th of February, 2023.

The market will be keen to see evidence of volume expansion in the metrics noted above, as well as guidance that the company can continue to grow despite the presence of higher interest rates and slower growth and a more competitive market place.

Uber daily chart

 

Uberq4tony63223.pngSource: TradingView

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