Uber’s Q3 Results: A Mixed Bag
Revenue Growth Beats Expectations, But Gross Bookings Fall Short
Uber’s third-quarter results, released on Thursday, brought a mix of good and bad news for investors. While the company’s revenue growth exceeded Wall Street’s expectations, its gross bookings fell short of projections.
Revenue Up 20%, Net Income Soars
Uber’s revenue grew 20% year-over-year, reaching $9.3 billion. The company reported a net income of $2.6 billion, or $1.20 per share, a significant increase from $221 million, or 10 cents per share, in the same quarter last year. This surge in net income was largely due to a $1.7 billion pre-tax benefit from unrealized gains related to the reevaluation of its equity investments.
Gross Bookings Disappoint
However, Uber’s gross bookings of $40.97 billion fell short of the $41.25 billion expected by analysts. Despite this, the company’s adjusted EBITDA of $1.69 billion was up 55% year-over-year and slightly above expectations.
Strong Performance in Core Business
“We are in a 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,” said Uber CEO Dara Khosrowshahi.
Q4 Outlook: Cautious Optimism
For the fourth quarter, Uber expects gross bookings between $42.75 billion and $44.25 billion, slightly below StreetAccount estimates of $43.68 billion. The company anticipates adjusted EBITDA of $1.78 billion to $1.88 billion, compared with the $1.83 billion expected by analysts.
Segment Performance
Uber’s mobility segment reported $6.41 billion in revenue, up 26% from a year earlier, while its delivery segment reported $3.47 billion in revenue, up 18% from the year prior. The company’s freight business reported $1.31 billion in revenue for the quarter, an increase of 2% year-over-year.
User Growth Continues
The number of Uber’s monthly active platform consumers reached 161 million in its third quarter, up 13% year-over-year from 142 million. The company completed 2.9 billion trips on its platform during the period, up 17% year-over-year.
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