Uber reports quarterly profit as demand approaches pre-pandemic levels

Ah Hussain

Uber Technologies Inc. reported its second quarterly operating profit on Wednesday as passenger demand approached pre-pandemic levels and the food delivery business turned profitable for the first time.

Shares rose 8.6% in after-hours trading.

While the company’s forecast for the first quarter was lower than Wall Street’s forecast as the Omicron coronavirus variable discourages travel, the president said Uber CEO Dara Khosrowshahi said business began to pick up in February.

While the Omicron variable began to impact our business in late December, mobility was already beginning to pick up, with total bookings up by

% on a monthly basis in the last week,” Khosrowshahi said in a statement.

in the last quarter of

, Uber reports $5.8 billion in revenue.

The California-based company reports adjusted earnings of 86 ) million dollars for the quarter ended 86 in December, compared to a loss on the same basis amounted to 86 million dollars last year and was well above analysts’ expectations. ) million in the fourth quarter.

Uber’s delivery unit, which is largely made up of the Uber Eats restaurant service, reported its first EBITDA-adjusted

$1 million, demonstrating Uber’s ability to scale its loss process in the face of strong competition.

Delivery emerged as one of its strengths The company’s main asset during the pandemic. Steady delivery bookings indicate that the recovery in flights has not been at the expense of food delivery, with consumers committing to service even as the economy reopens. Three times compared to last year. Airport trips are among the most profitable routes for Uber.

Uber also reported a net income of

million dollars, re-evaluating its stakes in Southeast-Asian Grab and Aurora Innovation Inc’s self-driving car, just one quarter after it reported a $2 billion net loss driven by its stake in Chinese transportation service Didi and stocks. – Compensation based.

Uber expected lower-than-expected adjusted earnings in the first three months of the year 2022, as the omicron coronavirus variable reduced travel demand in January.

Uber projected first-quarter adjusted earnings before interest, tax, depreciation and amortization, a measure that excludes one-time costs, primarily stock-based compensation, to range between 100 million dollars and 130 million dollars.

This compares with the analysts estimate of

. 57 million, according to Refinitiv data. From 27 a billion dollars to 27 a billion dollars, Uber’s forecast for total bookings also fell short of estimates. 27 26 Billion dollar.