Uber Technologies Inc UBER CEO Dara Khosrowshahi delivered on his bombshell memo to employees back in May of last year, saying the rideshare giant would cut costs and treat hiring like a “privilege,” as the company was addressing a shift in investor sentiment.
What Happened: Uber issued its fourth-quarter earnings on Wednesday, widely beating consensus estimates.
The rideshare giant issued 29 cents per share on revenues of $8.6 billion, against an expected loss of 18 cents per share on revenues of $8.49 billion.
Khosrowshahi said the company recorded its strongest quarter ever, capping off its strongest year ever.
This came after Khosrowshahi’s memo back in May that “landed a bit like a lead balloon” to employees.
The email sent by the Uber CEO said the company was implementing a rigorous cost-effective strategy that would see a slash in spending on marketing and incentives and would treat hiring as a privilege as the tech industry was beginning to see widespread layoffs.
The spring 2022 memo preceded a larger wave of layoffs in the tech industry, with the ripples still being felt today.
Uber’s lean mindset positioned the company to mostly keep its headcount, with no plans for company layoffs in 2023.
The company expected the growth to continue in the current quarter. Uber forecasted its gross bookings would grow between 20% to 24% from 2022.
In a statement with the results, CFO Nelson Chai said Uber is set up “for yet another record year.”
UBER Price Action: Shares of Uber are trading 3.10% higher to $36.07, according to data from Benzinga Pro.
Read Next: A Q4 Earnings Tale: Will Robinhood Investors Be Rewarded With Riches Or Continue To Suffer From Stock's Poor Performance?
hoto: Courtesy of Uber
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.