Uber Finally Earns Profit After Going Public

Uber posted its first full-year profit since going public in 2019, and its stock hit an all-time high this week as strong bookings in the final quarter of the year pushed profit and revenue beyond Wall Street expectations, according to Michelle Chapman's report for the Associated Press (AP).

Uber has started making money from operations. I Photo: freestocks.org Flickr

Like its final year as a private company, the last time Uber turned a profit, it got a huge tailwind from investments that helped fuel profits, totaling $1 billion in 2023. The difference is that Uber has started making money from operations.

“Last year was an inflection point for Uber,” said CEO Dara Khosrowshahi in prepared remarks.

Revenue totaled $9.94 billion, beating Wall Street projections for $9.75 billion. Gross bookings surged 22% from the prior-year period to $37.6 billion. For the year, Uber posted a profit of $1.89 billion, or 87 cents per share, on revenue of $37.28 billion.

Uber and other ride-share companies struggled through the COVID-19 pandemic.

The company, whose stock recently joined the S&P 500 index, saw its ride-hailing business stymied as government lockdowns kept millions at home.

But Uber focused on cutting costs and, during the pandemic, building up a then-nascent food-delivery division, which has since become a major revenue driver. Uber’s ride-hailing service has gradually bounced back, and the numbers from the fourth quarter suggest both are trending in the right direction.

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