Uber earnings quarter IV 2020

The Uber stock of the shipping and delivery company fell more than 3% after the bell on Wednesday, as the company achieved mixed results of earnings in the fourth quarter.

Here’s how Uber met expectations:

• Loss: 54 cents per share, compared to the expected 56 cents, according to a consensus of analysts surveyed by Refinitiv.
• Income: $ 3.17 billion compared to $ 3.58 billion expected on the Refinitive.

Overall, Uber lost $ 968 million based on GAAP in that quarter, an improvement from a year ago, when losses amounted to $ 1.1 billion. For all of 2020, Uber’s net losses amounted to $ 6.77 billion, an improvement of about 20% over a staggering loss of $ 8.51 billion in 2019.

Here’s how the largest Uber business segments evolved in the fourth quarter of 2020:

• Mobility (gross bookings): $ 6.79 billion, down 50% from last year.
• Delivery (gross bookings): $ 10.05 billion, up 130% from a year ago.

Earlier this month, the company announced plans to purchase the Drizly alcohol delivery app on demand, which the company plans to integrate into Uber Eats, its food delivery service. According to a statement from Uber, the transaction was valued at $ 1.1 billion in stock and cash combined. (Companies did not break down the part of the transaction made in stock against cash.)

In its update to shareholders on Wednesday, the company said Uber Eats restaurants topped 600,000 in the fourth quarter, with the addition of Union Square Hospitality Group units, Chipotle locations in the UK, Wings Etc. and more.

Uber deliveries include even more than hot meals at the restaurant. The company is expanding its non-food deliveries after acquiring Cornershop in Mexico for food and after working with retailers from H&M in Canada and Seiyu stores and department stores in Japan.

According to Edison Trends research, which evaluates transaction data from July 1, 2019 to October 13, 2020, Uber Eats food deliveries account for approximately 35% of the total US market after the company acquired Postmates. Uber Eats stays with DoorDash, but is more popular than previous food delivery leader Grubhub and emerging players like ChowNow and Slice.

Last quarter, Uber CEO Dara Khosrowshahi spoke about the company’s business and advertising business and said in some US cities that Uber is seeing recovery sparks after the pandemic.

Uber Pass and Uber Eats Pass had gathered over 1 million paying members at the time. Now, the company boasts more than 5 million members, according to the quarterly note sent by the company to investors.

On Wednesday, Uber executives are expected to update their shareholders on how much the pandemic is expected to limit the company’s mobility and travel business around the world and how its newer and newly acquired offerings are expected to impact profit and Uber prospects. The company is scheduled to begin the conference at 4:30 ET.

This is an evolving story … Please check again for updates.