Uber Q4 - A profitable 2023

Uber results out last week showed that it's reached a significant milestone - its first full-year operating profit since listing nearly five years ago.

The fourth-quarter operating income of $652 million comfortably exceeded forecasts. Additionally, Uber reported a net profit of $1.9 billion for 2023, compared to a staggering $9.1 billion loss in 2022. The success can be attributed to strong demand for ride-hailing and food deliveries, along with its burgeoning advertising business.

Uber's journey to profitability has been arduous, marked by steep losses and scepticism about its business model. However, as the world emerged from the Covid-19 pandemic, the company capitalised on thinner competition and cost-cutting measures.

They've announced a $7 billion share buyback, underscoring their newfound financial strength. This was very well received by the markets (+15% on the day).

Looking ahead, Uber expects gross bookings to rise to as much as $38.5 billion. They now have 150 million monthly active users.

Uber shares are up 125% in the past year to $81.39, racing past its IPO price of $45. The company is in good hands under the current management team.