Uber reported third-quarter results on Tuesday that fell short of analysts’ expectations for revenue and profit but showed strength in other areas, such as gross bookings, which exceeded the company’s second-quarter forecast.

This is how the company did it:

  • Earnings per share: 10 cents versus 12 cents expected from LSEG, formerly known as Refinitiv.
  • Revenue: $9.29 billion versus LSEG’s expected $9.52 billion.

Uber’s revenue increased 11% in the quarter 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 expenses.

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 year-ago quarter. This includes a $96 million headwind from revaluations of Uber’s stock investments.

Shares of Uber fell less than 1% in premarket trading on Tuesday.

Uber CEO Dara Khosrowshahi speaks on stage during the 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 an increase in the company’s gross bookings, trips and monthly active platform customers. He added that the platform continues to benefit from consumers shifting their spending from retail to services.

“These results show that Uber continues to drive profitable growth at scale – and why we believe we are well-positioned for the journey ahead, in good and bad macroeconomic environments,” he said.

Khosrowshahi told CNBC that Uber does not do business in Israel or Gaza and therefore the company is not directly affected by the ongoing conflict. He said the Middle East accounts for about 2% of Uber’s gross bookings.

Uber reported adjusted EBITDA of $1.09 billion, up $576 million from a year earlier and above the $1.02 billion expected by analysts polled by StreetAccount. Gross bookings for the quarter were $35.3 billion, up 21% year over year and above the company’s forecast for last quarter.

For the fourth quarter of 2023, Uber expects gross bookings to be between $36.5 billion and $37.5 billion, compared to StreetAccount estimates of $36.5 billion and adjusted EBITDA of $1.18 billion to $1.24 billion. Dollar.

This is how Uber’s largest business areas developed:

Mobility (gross bookings): $17.90 billion, up 31% year-on-year

Delivery (gross bookings): $16.09 billion, up 18% year-on-year

Uber’s mobility segment reported revenue of $5.07 billion, compared to $2.93 billion in delivery. The freight business reported revenue of $1.28 billion in the quarter, down 27% year-over-year. The figure is also in line with the $1.28 billion Uber reported last quarter, as Khosrowshahi told CNBC that freight transportation continued to be a challenging area for the company post-pandemic.

“In difficult times, larger companies, smarter companies with the best technology, can excel. And I think this is a time where Uber freight can stand out,” he reiterated on Tuesday.

Uber’s monthly active platform customers reached 142 million in the second quarter, up 15% year over year. During the reporting period, 2.44 billion rides were completed on the platform, an increase of 25% year-on-year.

Source : www.cnbc.com

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