By Mackenzie Tatananni

Uber stock sank in premarket trading Wednesday as the ride-hailing service reported mixed fourth-quarter results.

Revenue of $12 billion for the December quarter rose 20% from a year earlier and surpassed Wall Street's calls for $11.8 billion.

While net income jumped to $6.9 billion in the fourth quarter, Uber said this included a $6.4 billion benefit from a tax valuation release and a $556 million benefit due to net unrealized gains related to the revaluation of its equity investments.

The ride-hailing platform also reported operating income of $770 million, which sharply missed analysts' calls for $1.15 billion.

Shares of Uber tumbled 4.9% to $66.35 in premarket trading.

For the current quarter, the company said it anticipates gross bookings to grow 17% to 21% from the prior year, translating to a range of roughly $42 billion to $43.5 billion. At the midpoint, the forecast was below analysts' expectations of $43.5 billion.

Uber forecasts adjusted earnings before interest, taxes, depreciation, and amortization between $1.79 and $1.89 billion, representing 30% to 37% growth. Analysts surveyed by FactSet expected $1.85 billion.

Lyft was down 3.3%. The rival ride-hailing app is scheduled to report earnings on Feb. 11.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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February 05, 2025 07:46 ET (12:46 GMT)

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