Uber reports ‘strongest quarter ever’ while the rest of Silicon Valley stalls

Uber on Wednesday reported strong revenue growth in the final three months of last year, defying the slowdown that has plagued the rest of the tech sector.

The ride-hailing giant reported revenue of $8.6 billion for the quarter, beating Wall Street estimates and up 49% from a year earlier.

Its growth was fueled by an increase in ridership. The company said trips reached 2.1 billion during the quarter, an all-time quarterly high and representing an average of about 23 million trips per day.

In a statement accompanying the results, CEO Dara Khosrowshahi called it the company’s “strongest quarter ever.”

Uber shares rose 8% in premarket trading on Wednesday following the results.

In recent months, many of the tech industry’s biggest names have experienced a slowdown in sales as broader economic uncertainty forces advertisers and some consumers to reconsider spending. The tech industry, which boomed during the pandemic as people were forced to spend more time online, has also experienced a shift away from that behavior as people return to their offline lives.

However, the change appears to benefit Uber.

“Uber continues to see healthy growth as driver supply appears stable while the company capitalizes on the return of travel, office shifts, and other post-pandemic trends that have persisted in major cities,” he said. Wedbush Securities analyst Dan Ives said in a note after Uber’s results were released on Wednesday.

Uber expects growth to continue in the current quarter. The company predicts that its overall bookings will grow between 20% and 24% from last year. In a statement accompanying the results, CFO Nelson Chai said the company was set “for another record year.”

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