UBER - Uber slips even as Q4 results guidance beat company says expenses to slow

Uber Technologies ( NYSE: UBER ) shares slipped in early trading on Wednesday after the ride-sharing firm reported strong fourth-quarter results and guidance for the first-quarter, with the company saying it expects to see continued progress throughout the year while moderating expenses.

On the company's earnings call, CFO Nelson Chan said headcount for 2023 would be "relatively flat," after ending the year with around 29,000 employees.

CEO Dara Khosrowshahi said the company expects to see ordering and rides frequency continue to rise, as the company's initiatives to increase drivers on its platform have resulted in "very healthy" supply, he added.

Khosrowshahi also noted that Uber ( UBER ) is seeing trips on the U.S. west coast approach pre-COVID levels and added that the company is taking market share away from competitors in both ride-sharing and delivery.

Lyft ( NASDAQ: LYFT ), which competes with Uber ( UBER ) in ride-sharing, fell nearly 3% in early trading.

The 53-year-old Khosrowshahi also noted the company's advertising initiatives are seeing progress, as it is accelerating this year, with the likelihood that it generates $1B in revenue for the company this year.

In a note to clients, Wedbush Securities analyst Dan Ives said the results were an "impressive balance" of metrics as well as strong EBITDA.

"After a transitional year of growth and cost-cutting, we are seeing a leaner Uber finally hitting the inflection of growth and EBITDA levels the Street had only dreamed of a few years ago," Ives wrote.

Looking ahead to the first-quarter Uber ( UBER ) expects gross bookings to grow 20% to 24% year-over-year on a constant currency basis, between $31B and $32B and adjusted EBITDA is forecast to be between $660M and $700M .

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