Uber reported its Q3 results Tuesday that did not meet analysts' expectations. In a prepared remark, CEO Dara Khosrowshahi claimed the quarter was "very strong" as they saw an increase in gross bookings, trips and monthly active platform consumers. Revenue for the quarter added up to $9.29 billion, an 11% raise year over year.
Uber announced its third-quarter results on Tuesday, which failed to reach analysts' forecasted top and bottom lines. However, gross bookings exceeded the previously stated second-quarter guidance. The EPS reported was 10 cents, lower than the 12 cents predicted by Refinitiv Market Research; revenue of $9.29 billion was also lower than the $9.52 billion expected. Revenue was, nevertheless, 11% higher if compared to the same quarter of the previous year. Speaking to CNBC’s “Squawk Box”, CEO Dara Khosrowshahi indicated that the higher number would have been 8% if the company decided to reclassify certain incentive spends for Uber Eats as marketing expenses instead of contra revenue. As for net income, it was recorded at $221 million or 10 cents per share, while the same quarter of the previous year had a net loss of $1.2 billion or 61 cents per share, including a $96 million loss from Uber's equity investment revaluations. The stocks of Uber were slightly decreased pre-market on Tuesday.
In a statement, Khosrowshahi declared Uber's third quarter performance as "very strong", with acceleration in gross bookings, trips, and monthly active platform consumers. According to him, the results showed that the company is capable of profitable growth at scale, regardless of economic situation. Although the Middle East contributes to roughly 2% of Uber's gross bookings, Khosrowshahi stated that the present conflict in Israel and Gaza has not impacted the business. In terms of financial figures, the company reported adjusted EBITDA of $1.09 billion (with analysts expecting $1.02 billion) and gross bookings of $35.3 billion (versus guidance of $34.5 billion last quarter). Uber expects to report gross bookings between $36.5 billion and $37.5 billion for the fourth quarter of 2023, along with adjusted EBITDA of $1.18 billion to $1.24 billion. According to reports, Mobility gross bookings increased by 31% year-over-year to $17.90 billion, while Delivery gross bookings surged 18% to $16.09 billion. However, the company's freight business saw a decrease of 27% year-over-year, reporting $1.28 billion in revenue for the quarter. Monthly active platform consumers climbed to 142 million this quarter, representing a 15% growth from the previous year, and 2.44 billion trips were completed, a 25% increase. Khosrowshahi shared with CNBC his belief that Uber can stand out in difficult times.
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