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A couple things in regards to Uber's latest earnings report
$UBER reported their Q4 2021 earnings report last Wednesday. While the reaction to it seemed minimal, after seeing articles like "Uber's business is over the pandemic slump" caught my attention.
In the article, here are a couple of positives they noted from the earnings report:
- revenue growth of 83% YoY
- despite the easing of restrictions, their delivery business continues to remain a vital part of people's lives
- the company has 118 million monthly active users on its platform, which is their highest amount to date (27% growth YoY)
- $892 million profit for the quarter itself (2nd most profitable quarter)
For context on the profit, how $AMZN reaped most of its profits from the $RIVN IPO is similar in effect to how $UBER reaped most of its profits from the $GRAB IPO.
Overall, Uber's profits are narrowing from 2020.
Now, let's check out the numbers.
From their financials, there are a couple of things to note:
- Overall, the company is growing fast
- Their delivery business continues to grow even as the pandemic restrictions subside
- The Freight business is gaining fast momentum and has already achieved significance in terms of the amount of revenue it generates
Now for the adjusted EBITDA numbers:
From the looks of it, Uber's delivery business finally made a profit. At the same time, Uber's Freight business is reducing its losses while growing its revenues.
Taking the bigger picture, the Delivery business was able to use economies of scale to break a profit. As for their Freight business, the economies of scale continue to look favorable. Hopefully, they will break even in the near future.
If I had to sum up the performance of the quarter, I say that there's a lot to be optimistic about.
CNN
Uber’s business is over the pandemic slump | CNN Business
Uber’s business is showing signs that it’s moving past the pandemic slowdown.
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