Omicron’s shock subsides, Uber revised up Q1 earnings forecast, stock price soared more than 6% at opening

Uber, the world’s leading ride-hailing platform, revised up its fiscal forecast for the first quarter of 2022 on the 7th, citing that the impact of the Omicron epidemic is fading faster than expected. Encouraged by the optimistic financial forecast, Uber’s stock price rose more than 6% in early trading, but it was weak at the end and closed down 4.22%.

According to CNBC, The Wall Street Journal and other foreign media reports, according to Uber’s filing with the U.S. Securities and Exchange Commission (SEC), it is expected that adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter of 2022 will be between $130 million to $150 million, better than the original forecast of $100 million to $130 million.

Uber said that the demand for ride-hailing and food delivery increased significantly in February. The number of ride-hailing orders (Trips) returned to 90% in February 2019, and the total bookings (Gross Bookings) also returned to 95% in February 2019. . Gross bookings are the total value of Uber’s ride-hailing and delivery orders (in US dollars).

Uber CEO Dara Khosrowshahi said: “Demand continues to grow steadily, whether traveling, commuting or overnight trips, reflecting consumers’ desire to get out and about. In fact, total bookings from airport transfers jumped more than 50% in February compared to January. , we are preparing for the upcoming peak tourist season, which is expected to be one of the strongest on record.”

Airport transfers are one of Uber’s biggest beneficiaries. In 2021, 11% of Uber’s total bookings came from airport transfers, up from 15% in 2019, according to SEC filings.

Shares of Uber fell 4.22% to close at $28.57 on the 7th as a surge in oil prices triggered a sell-off in the stock market. Uber shares have fallen 46.30% in the past 12 months.

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