Uber Technologies Inc updated a disappointing mixed result on quarterly earnings after the bell on Wednesday.
Gross bookings for the last three months of 2020 came at $17.20 billion compared to the $17.35 billion anticipated on initial forecasts.
Uber Ride’s gross bookings experienced a 47% fall from the same period last year as localized mobility restrictions continue on key markets.
In a month on month analysis, the indicator fell by 10% before the holiday activities in December.
Similarly, the company recorded $0.54 losses per share compared to the $0.42 expected.
The relatively conservative fall from expectations came despite the renewed lockdowns in Q4 as the virus surged.
A disciplined execution together with the improvement in its delivery business provided support. Leading to an improved EBITDA of $161 million YoY during the period.
According to the ride-hailing platform’s chief executive officer Dara Khosrowshahi. The quarter provided a ground for the completion of portfolio revisions started in Q2.
Such a move is directed towards exploring opportunities in mobility and delivery sectors where 20 transactions, including acquisitions, were completed in 2020.
One important aspect which also provided the much-needed lift is Uber Eats. The venture garnered gross bookings of $10.05 billion, surpassing forecasts of $9.76 billion.
Food delivery service has experienced an unprecedented boom during the pandemic as brick-and-mortar facilities closed doors to dine-in options.
In guidance for 2021, the leader asserted commitment towards growing product offerings on cross-cutting ventures.
This strategy is envisioning an ecosystem-like mechanism where Uber can provide services whenever, wherever, and whatever its users need.
In the year, additional benefits are anticipated to make an appearance on its platform including the renewed focus on Uber Ride Pass and Eat Pass membership programs.
Still, Earnings Disappoint
Moreover, ancillary services such as alcohol distribution and pharmacy-related services are also expected to improve user loyalty and engagement with the brand.
Despite the well-constructed plans for the incumbent years, traders are still apprehensive about the lukewarm earnings performance.
With this, the firm’s shares fell as much as 2.5% in the after-hours following the release of the quarterly update.
Investors are comparing the results with that of its major competitor, Lyft, which beat analysts’ expectations on revenue.
On the other hand, its rival failed to perform better on the number of active riders, giving Uber some leverage on the segment.
Despite the lukewarm performance. Uber Technologies Inc asserted that it is still on the right track to achieving its profitability goal for 2021.