Uber Q4 2021 Earnings Review: Surpassing Expectations and Strong Recovery

Uber delivered an impressive performance in Q4 2021, surpassing analyst predictions across key financial metrics.

Highlights

• Gross bookings reached $25.9 billion, outperforming market expectations.
• Gross bookings represent the total value generated from Uber’s diverse platforms including ride-hailing, delivery, and freight.
• Despite a late-December impact from the Omicron variant, Uber is rapidly recovering and continuing its post-pandemic growth trajectory.

Source: Analyst consensus from Visible Alpha

In-Depth Financial Analysis of Uber (UBER)

Uber Technologies, Inc. (UBER) announced Q4 FY 2021 earnings that significantly outpaced analyst estimates. This quarter marked only the second time in over three years that Uber reported positive earnings per share (EPS), defying expectations of a loss. The earnings included a notable $1.4 billion net gain from equity investments. Revenue surged 82.6% year-over-year, topping forecasts, while gross bookings across all business segments also exceeded projections. Following the announcement, Uber’s stock price climbed over 6% in after-hours trading. However, over the past year, Uber’s shares have returned -32.6%, trailing the S&P 500’s 17.3% gain.

Gross Bookings Growth

Uber’s gross bookings increased by 50.8% compared to the same quarter last year. This metric reflects the total dollar amount—including taxes, fees, and tolls—generated from Uber’s ride-hailing, grocery and food delivery, and freight services, providing a comprehensive view of the company’s operational scale. Gross bookings closely correlate with Uber’s revenue, representing the portion retained by the company.

During the height of the COVID-19 pandemic in 2020, Uber experienced declines in gross bookings, primarily due to reduced demand for ride-hailing services as lockdowns kept people home. However, growth in delivery services helped offset some losses. In 2021, as vaccination efforts progressed and restrictions eased, Uber’s gross bookings rebounded strongly. Although Q4 growth slowed compared to earlier quarters, it remained robust relative to pre-pandemic levels. The ride-hailing segment nearly returned to its pre-COVID scale, with a temporary dip caused by the Omicron variant late in December quickly recovering.

Specifically, ride-hailing gross bookings (Mobility) rose 67.0% year-over-year, making up about 43.8% of total gross bookings. Delivery bookings increased by 33.8%, accounting for roughly 52.0%, while freight bookings soared 245.7%, representing around 4.2% of total bookings.

Looking Ahead: Uber’s Q1 2022 Forecast

Uber projects Q1 2022 gross bookings to range between $25 billion and $26 billion. The company anticipates adjusted EBITDA between $100 million and $130 million.

Insights from the Earnings Call

During the post-earnings analyst call, Uber’s CFO Nelson Chai noted that Omicron-related impacts are expected to cause a quarter-over-quarter decline in mobility gross bookings for Q1 2022, while delivery bookings are forecasted to remain stable or grow slightly. Uber’s next quarterly earnings report is scheduled for release on May 3, 2022.

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