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Uber reported third-quarter results on Tuesday that missed analyst expectations on the top and bottom lines, but showed strength in other areas such as gross bookings, which exceeded the company’s expectations from the second quarter.
Here’s how the company did it:
- Profit per share: 10 cents versus 12 cents expected by LSEG, formerly known as Refinitiv.
- Gain: $9.29 billion versus $9.52 billion expected by LSEG.
Uber’s revenue for the quarter rose 11% compared to the same quarter last year. In an interview with CNBC’s “Squawk Box” on Tuesday, CEO Dara Khosrowshahi said revenue growth would have been 8% higher, but the company reclassified certain incentive expenses for Uber Eats this quarter as counter-revenue instead of marketing costs.
The company reported net income of $221 million, or 10 cents per share, compared with a net loss of $1.2 billion, or 61 cents per share, in the same quarter last year. That includes a $96 million headwind from revaluations of Uber’s equity investments.
Shares of Uber fell less than 1% in premarket trading on Tuesday.
Uber CEO Dara Khosrowshahi speaks on stage during GE The Lean Mindset: The Pursuit Of Progress Event at Chelsea Industrial on September 6, 2023 in New York City.
Ilya S. Savenok | Getty Images Entertainment | Getty Images
In a prepared statement, Khosrowshahi said Uber’s third quarter was “very strong” and that he saw accelerations in the company’s gross bookings, trips and monthly active platform consumers. He added that the platform sees the continued benefits of consumers shifting their spending from retail to services.
“These results demonstrate that Uber continues to drive profitable growth at scale – and why we think we are well positioned for the journey ahead, in good or bad macro environments,” he said.
Khosrowshahi told CNBC that Uber does not do business in Israel or Gaza, so the company has not been directly affected by the ongoing conflict. He said the Middle East represents about 2% of Uber’s gross bookings.
Uber reported adjusted EBITDA of $1.09 billion, up $576 million year-over-year and above the $1.02 billion expected by analysts polled by StreetAccount. Gross bookings for the quarter came in at $35.3 billion, up 21% year over year and above the company’s expectations last quarter.
For the fourth quarter of 2023, Uber expects to report gross bookings in the range of $36.5 billion to $37.5 billion, compared to StreetAccount estimates of $36.5 billion, and adjusted EBITDA of $1.18 billion to $1.24 billion dollars.
Here’s how Uber’s largest business segments performed:
Mobility (gross bookings): $17.90 billion, up 31% year over year
Delivery (gross bookings): $16.09 billion, up 18% year over year
Uber’s mobility segment reported revenue of $5.07 billion, compared to $2.93 billion from delivery services. The freight business posted revenue of $1.28 billion this quarter, down 27% year over year. The figure also matches the $1.28 billion Uber reported last quarter when Khosrowshahi told CNBC that trucking has remained a challenging spot for the company in the wake of the pandemic.
“In tough times, bigger companies, smarter companies with the best technology can stand out. And I really think this is a time for Uber freight to differentiate itself,” he reiterated on Tuesday.
Uber’s number of monthly active platform consumers reached 142 million in the second quarter, up 15% year over year. 2.44 billion trips were completed on the platform during the period, up 25% year-on-year.
