Uber plunged as much as 10% pre-market! Q4 bookings surged but couldn't offset profit concerns, new CFO signals a push for Robotaxi | Earnings Report Insights

Uber released a mixed earnings report. Although total bookings in the fourth quarter grew strongly and exceeded expectations, market concerns were triggered by weak profit guidance and a sharp year-on-year decline in net profit. Meanwhile, the company appointed a staunch supporter of autonomous driving technology as its new Chief Financial Officer, clearly signaling a strategic shift towards further investing in the Robotaxi business.

The earnings report showed the company’s net profit in the fourth quarter was $296 million, a significant 96% year-on-year decrease. For the current quarter, Uber expects its adjusted earnings per share to be between $0.65 and $0.72, below the analyst consensus of $0.77 compiled by Bloomberg, and the midpoint forecast for adjusted EBITDA also missed the mark. Affected by this, Uber’s share price once plunged 10% in New York pre-market trading.

Alongside the earnings release, Uber announced that current VP of Strategic Finance and Investor Relations Balaji Krishnamurthy will replace Prashanth Mahendra-Rajah as CFO. As an executive who has long defended Uber’s autonomous driving strategy on social media, Krishnamurthy’s appointment marks the company’s increased investment in the highly scrutinized autonomous driving sector.

Despite concerns over the profit outlook, Uber’s bookings guidance is notably optimistic. The company expects bookings for the current quarter to be between $52 billion and $53.5 billion, exceeding market expectations. CEO Dara Khosrowshahi emphasized that, thanks to lower insurance costs and new product launches, the pricing environment is healthier, laying a foundation for revenue growth and margin expansion over the coming year. As of now, Uber’s stock decline has narrowed to 5%.

Weak profit guidance, robust core business growth

While profit forecasts put pressure on the stock price, Uber’s core business metrics remain solid. In the fourth quarter, the closely watched total bookings (including ride-hailing, food delivery, and driver and merchant revenues, excluding tips) grew 22% year-on-year to $54.1 billion, exceeding analyst averages.

This growth was driven by several new product initiatives the company launched during the quarter. The paid membership, Uber One, contributed more transactions, and the premium pre-booked rides for ski resorts capitalized on the peak holiday travel season. Moreover, the company added more affordable options, including expanding lower-priced shuttle service to all major airports in New York. The delivery business also saw strong growth over the holidays, setting sales records on Black Friday. By increasing non-food merchants and offering more regular discounts, Uber is working to win customers from competitors like DoorDash and Instacart.

CFO change signals autonomous driving strategy

Uber disclosed a major personnel change in the earnings report. Balaji Krishnamurthy, who has worked at Uber for more than six years, will be promoted to Chief Financial Officer. According to regulatory filings released Wednesday, current CFO Prashanth Mahendra-Rajah will step down on February 16 and stay on as senior financial advisor until July 1.

The new CFO, Krishnamurthy, is well known for advocating Uber’s driverless strategy on social media. He often defends the company’s autonomous driving plans against skeptics who question Uber’s ability to compete with rivals like Waymo and Tesla Inc. Uber has invested hundreds of millions of dollars in autonomous technology partners and has agreed to purchase Robotaxi fleets. This management change signals that Uber is betting its experience operating a profitable ride-sharing platform will enable it to secure a key position in the increasingly crowded autonomous driving ecosystem.

Expanding Robotaxi territory, countering ‘zero-sum game’ theory

To further advance the commercialization of autonomous driving, Uber announced it will expand Robotaxi services to several new markets, including Houston, Hong Kong, Madrid, and Zurich. Hong Kong will become Uber’s first Robotaxi market in Asia. The company plans to roll out driverless car services to over 10 markets worldwide in the next few years.

In its earnings presentation, Uber specifically countered Wall Street skeptics’ “misconception” that autonomous technology will hurt Uber’s business. The company reiterated that Robotaxi can stimulate growth across the entire ride-hailing industry—it’s not a zero-sum game. Uber pointed out that in Austin and Atlanta, where Waymo is integrated into the Uber app, trip growth outpaced its top 20 cities.

Uber also subtly highlighted limitations of rival Waymo. Uber noted that due to regulatory restrictions, in cities like New York, Boston, and Chicago, most trips and profits cannot be realized by driverless cars in the foreseeable future. In addition, Robotaxi operators generally do not serve non-wealthy areas such as Oakland. Uber especially emphasized the flexibility of human drivers, noting that during San Francisco’s power outage last December and the recent winter storms, when autonomous vehicles were hindered or removed from the platform, human drivers quickly met demand, ensuring customer experience.

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