Shares of the ride-hailing company fell more than 8% in premarket trading after Uber said it expects its adjusted effective tax rate to range between 22% and 25% this year, News.Az reports, citing Reuters.
“Our ETR reflects our business with operations across 70+ countries, which results in a tax profile comparable to large U.S. multinationals with significant global operating presence,” Uber said.
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Trips increased 22% in the fourth quarter, as more consumers chose Uber’s lower-cost offerings, including shared rides and other affordable mobility products.
In November, the company said it was deliberately slowing the pace of margin expansion after proving over several years that its business model can generate profits at scale. Uber added that investments in affordability and low-cost products have helped accelerate mobility growth, even though they have weighed on near-term margins.
Uber expects first-quarter adjusted earnings per share to range between 65 cents and 72 cents, below analysts’ expectations of 76 cents. For the fourth quarter, the company posted adjusted earnings of 71 cents per share, missing estimates of 79 cents.
Last year, Uber said it would replace quarterly adjusted core profit guidance with adjusted earnings per share to provide investors with a clearer picture of recurring operating performance.
The company forecast first-quarter gross bookings of between $52.0 billion and $53.5 billion, above analysts’ estimates of $51.16 billion, according to data compiled by LSEG.
Uber Chief Executive Dara Khosrowshahi said improving pricing conditions and lower insurance costs should help support faster growth in the U.S. market and drive margin expansion later this year.
