Uber’s Q3 Results: Revenue Beats Expectations, Gross Bookings Miss

Uber released its third-quarter earnings on Thursday, showing a stronger-than-expected revenue but falling short on gross bookings. Pre-market shares dipped over 5% following the report.

Key Financial Metrics

Earnings per Share: $1.20, significantly exceeding the expected 41 cents by LSEG.

Revenue: $11.19 billion, surpassing the anticipated $10.98 billion.

Gross Bookings: Reported at $40.97 billion, below the $41.25 billion forecast by analysts from StreetAccount.

The company noted a net income of $2.6 billion for the quarter, a sharp increase from $221 million a year ago. This figure includes a $1.7 billion pre-tax benefit from unrealized gains related to equity investments.

Performance Highlights

Uber’s revenue saw a 20% year-over-year growth from $9.3 billion last year. Adjusted EBITDA reached $1.69 billion, marking a 55% increase year over year and slightly exceeding the expected $1.64 billion.

CEO Dara Khosrowshahi stated, “We are in the fortunate position of having strong performance in our core business, which allows us to make organic investments in new products and capabilities that will pay off for our platform over the long term.”

Looking Ahead

For the fourth quarter, Uber projects gross bookings between $42.75 billion and $44.25 billion, slightly below the StreetAccount estimate of $43.68 billion. The company anticipates adjusted EBITDA of $1.78 billion to $1.88 billion, compared to the expected $1.83 billion.

In terms of activity, the platform completed 2.9 billion trips during the quarter, a 17% increase year over year. Monthly active consumers reached 161 million, up 13% from 142 million in the same period last year.

Segment Performance Breakdown

Mobility Gross Bookings: $21 billion, a 17% year-over-year increase.

Delivery Gross Bookings: $18.7 billion, up 16% from the previous year.

The mobility segment generated $6.41 billion in revenue, exceeding the expected $6.31 billion. The delivery segment reported $3.47 billion, also above the anticipated $3.43 billion. Additionally, Uber’s freight business earned $1.31 billion, reflecting a 2% year-over-year growth.

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