Uber announced third-quarter results Tuesday that missed analysts’ expectations on the top and bottom lines but showed strength in other precincts, like gross bookings, which exceeded the company’s guidance from the second quarter.
Here’s how the company did:
- Earnings per share: 10 cents vs. 12 cents assumed by LSEG, formerly known as Refinitiv.
- Revenue: $9.29 billion vs. $9.52 billion expected by LSEG.
Uber’s revenue for the point was up 11% from the same quarter last year. In an interview with CNBC’s “Squawk Box” on Tuesday, CEO Dara Khosrowshahi said interest growth would have been 8% higher, but the company reclassified certain incentive spends for Uber Pack aways as contra revenue instead of marketing expenses this quarter.
The company reported net income of $221 million, or 10 cents per split, compared with a net loss of $1.2 billion, or 61 cents per share, in the same quarter last year. That incorporates a $96 million headwind from revaluations of Uber’s equity investments.
Shares of Uber closed up more than 3% Tuesday.
CEO of Uber, Dara Khosrowshahi, declares onstage during GE The Lean Mindset: The Pursuit Of Progress Event at Chelsea Industrial on September 06, 2023 in New York Bishopric.
Ilya S. Savenok | Getty Images Entertainment | Getty Images
In a prepared statement, Khosrowshahi said Uber’s third neighbourhood was “very strong” and he saw accelerations in the company’s gross bookings, trips and monthly active platform consumers. He added that the stage is seeing the continued benefits of consumers shifting spending from retail to services.
“These results demonstrate that Uber perpetuates to drive profitable growth at scale—and why we believe we’re well positioned for the journey ahead, in good or bad macro environments,” he spoke.
Khosrowshahi told CNBC that Uber does not do business in Israel or Gaza, so the company has not been directly bumped by the ongoing conflict. He said the Middle East represents around 2% of Uber’s gross bookings.
Uber publicized adjusted EBITDA of $1.09 billion, up $576 million year over year and above the $1.02 billion thought by analysts polled by StreetAccount. Gross bookings for the quarter came in at $35.3 billion, up 21% year over year and essentially the company’s guidance last quarter.
For the fourth quarter of 2023, Uber said it expects to report gross bookings between $36.5 billion and $37.5 billion, corresponded with StreetAccount estimates of $36.5 billion, and adjusted EBITDA of $1.18 billion to $1.24 billion.
Here’s how Uber’s largest trade 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 $5.07 billion in revenue, compared with delivery’s $2.93 billion. Its delivery business booked $1.28 billion in sales for the quarter, a 27% decline year over year. The figure is also in stripe with the $1.28 billion Uber reported last quarter when Khosrowshahi told CNBC freight has corpsed a challenging spot for the company in the wake of the pandemic.
“In tough times, larger companies, smarter companies with the most beneficent technology can stand out. And I do think this is a time when Uber freight can stand out,” he reiterated Tuesday.
The number of Uber’s monthly hyperactive platform consumers reached 142 million in the second quarter, up 15% year over year. There were 2.44 billion voyages completed on the platform during the period, up 25% year over year.