Uber CEO Dara Khosrowshahi speaks during a product launch event in San Francisco, California on September 26, 2019.
Philippe Pacheco | AFP via Getty Images
Uber reported a third quarter loss on Tuesday but beat analyst estimates for revenue and showed an increase in bookings. The shares rose about 9% in premarket trading.
Here’s how the company did it:
- Loss per share: 61 cents
- Revenue: $8.34 billion versus $8.12 billion expected by analysts, according to Refinitiv.
Uber posted a net loss of $1.2 billion for the third quarter, of which $512 million was attributed to revaluations of Uber’s equity investments, according to a company statement.
In a prepared statement, CEO Dara Khosrowshahi said Uber had a “strong quarter” and benefited from the travel boom, easing lockdowns and changes in consumer spending. He said October would be the “best month in company history for mobility bookings and overall gross company bookings”. However, he warned that after the past few years, the company has learned not to take anything for granted.
“With continued cost rigor, workforce discipline and a balanced approach to capital allocation, all supported by our industry-leading technical and operational capabilities, we are well positioned to generate growing profitability over the coming quarters,” Khosrowshahi said.
The company reported record adjusted EBITDA of $516 million, beating forecasts of $440 million to $470 million and beating analyst estimates of $457.7 million according to StreetAccount. Gross bookings for the quarter were $29.1 billion, up 26% year-over-year.
For the fourth quarter of 2022, Uber said it expects gross bookings to grow between 23% and 27% year over year at constant currencies, and adjusted EBITDA of 600 to 630 millions of dollars.
Here’s how Uber’s major business segments fared during the quarter:
Mobility (gross reservations): $13.7 billion, below analyst estimates of $13.83 billion according to StreetAccount.
Delivery (gross bookings): $13.7 billion, below analyst estimates of $14.01 billion according to StreetAccount.
Uber has relied heavily on growing its Eats delivery business during the pandemic, but its mobility segment has outpaced Eats revenue in its first and second trimesters as runners began to make more trips. This trend continued in the third quarter, with Uber’s mobility segment recording revenue of $3.8 billion while delivery brought in $2.8 billion.
Uber’s freight business made $1.75 billion in revenue.
The number of monthly active platform consumers rose to 124 million in the third quarter, up 14% year-over-year. 1.95 billion trips were made on the platform during the period, up 19% year-over-year.
Uber shares are down more than 36% so far this year. The stock fell more than 10% in October after Biden’s labor department posted a proposal it could pave the way for regulators and courts to reclassify gig workers as employees. The proposed rule could increase costs for companies like Uber, LyftInstagram and DoorDash who rely on contract workers to take their shifts during their free time.
Companies have argued that flextime is attractive to workers, but some labor experts and activists disagree, saying companies are using the contractor model to cut their own costs and deny workers important safeguards.
Uber also had to deal with high gas prices and inflation, but CEO Dara Khosrowshahi told CNBC’s “TechCheck” in September that its supply could actually benefit from the inflationary environment.
As expenses rise and people pay more for essentials like groceries, he said they are also signing up to drive for Uber.
“If anything, 72% of drivers in the United States say that one of the considerations for signing up to drive on Uber was actually inflation,” he said.
Uber will hold its quarterly conference call with investors on Tuesday at 8 a.m. ET.
— CNBC’s Lauren Feiner contributed to this report.