Uber Reports Third Quarter Results, Misses Expectations on Earnings and Revenue
New York City, NY – Ride-hailing giant Uber reported its third-quarter results on Tuesday, falling short of analysts’ expectations on both earnings per share (EPS) and revenue. However, the company did show strength in other areas, such as gross bookings, which exceeded guidance from the second quarter.
Earnings per share came in at 10 cents, lower than the expected 12 cents as projected by LSEG (formerly known as Refinitiv). Meanwhile, revenue for the quarter totaled $9.29 billion, missing the estimated $9.52 billion by LSEG.
Despite the disappointment in earnings and revenue, Uber’s financials did show improvement compared to the same quarter last year. Revenue was up 11% year over year, and the company reported a net income of $221 million, or 10 cents per share, in contrast to a net loss of $1.2 billion, or 61 cents per share, in the third quarter of 2022. However, these figures include a $96 million headwind from revaluations of Uber’s equity investments.
Following the announcement, Uber’s shares rose around 2% in premarket trading on Tuesday.
In a prepared statement, Uber CEO Dara Khosrowshahi expressed satisfaction with the company’s third-quarter performance. He highlighted the acceleration in gross bookings, trips, and monthly active platform consumers, noting that Uber is benefiting from a shift in consumer spending from retail to services.
Khosrowshahi stated, “These results demonstrate that Uber continues to drive profitable growth at scale—and why we believe we’re well positioned for the journey ahead, in good or bad macro environments.”
Uber also reported adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $1.09 billion for the quarter, exceeding analysts’ expectations. Gross bookings reached $35.3 billion, a 21% year-over-year increase and surpassing the company’s guidance from the previous quarter.
Looking ahead to the fourth quarter of 2023, Uber provided estimates for gross bookings between $36.5 billion and $37.5 billion, aligning with StreetAccount estimates of $36.5 billion. The company expects adjusted EBITDA of $1.18 billion to $1.24 billion.
Breaking down Uber’s business segments, the mobility division saw gross bookings of $17.90 billion, a 31% YoY increase. Meanwhile, the delivery division reported gross bookings of $16.09 billion, up 18% from the previous year.
The mobility segment generated $5.07 billion in revenue, surpassing the delivery segment’s $2.93 billion. Additionally, Uber’s freight business reported $1.28 billion in sales for the quarter, a 27% decline compared to the same period last year. This figure remained consistent with last quarter’s results when Khosrowshahi acknowledged the challenges faced in the freight sector.
Uber’s monthly active platform consumers reached 142 million in the third quarter, a 15% YoY increase. The platform also completed 2.44 billion trips during the same period, representing a 25% YoY growth.
Despite missing expectations in some key financial areas, Uber remains optimistic about its long-term growth potential. The company believes it is well-positioned to navigate various market conditions and continue delivering profitable growth on a larger scale.