Shares of Uber Drop After Company Misses on Guidance

Ride hailing giant Uber saw its shares fall on Thursday, after the company said that it would report around $5 billion in adjusted profit in 2024.

Unfortunately, this forecast is below the $5.7 billion analysts expect for 2024, according to Refinitiv data.

The company’s shares fell around 4% as Wall Street digested the miss, after being up as much as 5% earlier in the day.

Chief Financial Officer Nelson Chai made the announcement at the company’s first Investor’s Day.

“We think it’s a worthwhile target, could there be upside, absolutely, but let’s work on that target for now,” Uber Chief Executive Officer Dara Khosrowshahi said.

According to Chai, the company expects to also report gross bookings of between $165 billion and $175 billion in 2024.

That outlook compares to an adjusted EBITDA loss of $0.8 billion in 2021 and gross bookings of $90 billion. Refintiv Data showed that analysts had projected gross bookings of $169.73 billion.

In addition to the forecast, the company also revealed several strategies for growth and new business opportunities, including a plan to have at least five long-term autonomous vehicle partnerships in the U.S. in 2022.

Earlier in the week the company reported strong fourth-quarter results and issued first-quarter guidance.

Uber earned $0.44 a share on $5.78 billion in revenue, as revenue from delivery surged 77% year-over-year to $2.42 billion. The results topped the forecasts of Wall Street analysts, who estimated the company would lose $0.33 a share on $5.36 billion in revenue.

For its first quarter, Uber said it expects gross bookings to be between $25 billion and $26 billion, with adjusted EBITDA between $100 million and $130 million.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.