Uber Technologies Inc. reported a profit of 23 cents per share for the fourth quarter of 2024, missing analysts’ expectations of 50 cents.

The company’s shares fell by 6% in pre-market, partly due to rising costs.

Total revenue rose by 20% year-over-year to US$11.96 billion, exceeding expectations.

However, costs and expenses rose 20.5% to US$11.19 billion, leading to lower-than-expected operating income of US$770 million.

Despite the profit miss, Uber saw strong revenue growth in key segments.

Ride-hailing revenue increased by 25%, while delivery revenue grew by 21%, both surpassing estimates.

Gross bookings for the quarter were US$44.2 billion, was aided by ongoing demand for office commutes and holiday deliveries.

Looking ahead, Uber estimates first-quarter gross bookings between US$42 billion and US$43.5 billion, slightly lower than analysts’ expectations due to currency fluctuations.

CEO Dara Khosrowshahi said  that Uber aims to improve demand in 2025 by providing competitive rates and controlling insurance cost increases.

Recent Uber developments