Uber released third-quarter financial results on Tuesday that exceeded revenue forecasts from analysts.
According to a company release, the company had a net loss of $1.2 billion for the quarter, of which $512 million was attributable to revaluations of Uber’s equity investments.
Uber
reported a loss for the third quarter on Tuesday, but revenue beat analysts’ expectations and showed a spike in bookings. In premarket trading, shares increased by about 7%.
Here is how the business fared:
Shares lost 61 cents each.
According to Refinitiv, Revenue was $8.34 billion compared to analysts’ expectations of $8.12 billion.
According to a press release from the company, Uber reported a net loss of $1.2 billion for the third quarter, $512 million of which was attributable to revaluations of Uber’s equity investments.
CEO Dara Khosrowshahi claimed in a prepared statement that Uber had a “strong quarter” and benefited from increased travel, fewer lockdowns, and changes in consumer spending. Although he cautioned that after the previous few years, the company has learned not to take anything for granted, he claimed that October is on track to be the company’s “best month ever for both Mobility and total company Gross bookings.”
“We are well positioned to deliver expanding profitability over the coming quarters,” Khosrowshahi said. “With continued rigour around costs, discipline on headcount, and a balanced capital allocation approach, all supported by our leading technical and operating capabilities, we are well positioned to deliver.
According to StreetAccount, the company reported record adjusted EBITDA of $516 million, exceeding guidance of $440 million to $470 million and surpassing analyst estimates of $457.7 million. Gross bookings for the quarter totaled $29.1 billion, an increase of 26% from the previous year.
According to Uber, it anticipates gross bookings to increase by 23% to 27% on a constant currency basis for the fourth quarter of 2022 and adjusted EBITDA to be between $600 million and $630 million.
Here is how Uber’s principal business divisions fared during the quarter:
Mobility (gross bookings): $13.7 billion, falling short of StreetAccount’s estimate of $13.83 billion from analysts.
Delivery (gross bookings): $13.7 billion, falling short of StreetAccount’s estimate of $14.01 billion from analysts.
Uber’s Eats delivery business saw significant growth during the pandemic, but as riders started taking more trips, its mobility segment’s revenue surpassed Eats in the company’s first and second quarters. The third quarter of 2018 saw a continuation of this pattern, with Uber’s mobility segment reporting $3.8 billion in revenue and delivery reporting $2.8 billion.
Sales for Uber’s freight division totaled $1.75 billion.
In the third quarter, there were 124 million active platform users, up 14% from the same period last year. During that time, 1.95 billion trips were completed on the platform, a 19% increase from the previous year.
So far this year, shares of Uber have decreased by more than 36%. After the Biden Labor Department issued a proposal that might allow authorities and courts to reclassify gig workers as employees, the stock fell more than 10% in October. Companies like Uber, Lyft, Instacart, and DoorDash that rely on contract workers to take shifts on their own schedules may see costs increase as a result of the proposed rule.
The businesses claim that flexible schedules are appealing to employees, but some labour experts and activists disagree, claiming that the businesses rely on the contractor model to cut costs while denying employees crucial protections.
Inflation and high gas prices have also been issues for Uber, but its CEO, Dara Khosrowshahi, said on CNBC’s “TechCheck” in September that the company’s supply side may actually be benefiting from the situation.
He claimed that as costs rise and people are forced to pay more for necessities like groceries, they are also deciding to drive for Uber.
In fact, according to 72% of American drivers, inflation was a factor in their decision to sign up to drive for Uber, he claimed.
Tuesday at 8 a.m., Uber will host its quarterly conference call with investors. ET.
