Uber Technologies, Inc. reported better-than-expected fourth-quarter earnings and revenue on Thursday, but shares fell 2.6% in early trading despite the company's strong results and outlook.
The ride-hailing and food delivery giant posted adjusted earnings per share of $3.21, significantly beating analyst estimates of $0.49. Revenue grew 20% year-over-year to $12 billion, also topping expectations of $11.77 billion.
Uber (NYSE:UBER)'s gross bookings, a key metric measuring the total dollar value of rides and deliveries, rose 18% to $44.2 billion in Q4. The company reported 171 million monthly active platform consumers, up 14% from the prior year.
"Uber ended 2024 with our strongest quarter ever, as growth accelerated across MAPCs, trips, and Gross Bookings," said CEO Dara Khosrowshahi in a statement.
For the first quarter of 2025, Uber forecasts gross bookings growth of 17% to 21% YoY on a constant currency basis. The company expects adjusted EBITDA between $1.79 billion and $1.89 billion, representing 30% to 37% YoY growth.
Despite the strong results and guidance, Uber's stock declined 2.6% following the report. The company's CFO Prashanth Mahendra-Rajah stated, "We believe we remain undervalued despite these strong fundamentals, and plan to be active and opportunistic buyers of our stock."
Uber also announced it entered into a $1.5 billion accelerated share repurchase agreement in January as part of its previously announced $7 billion buyback program.
