Technology
Tuesday, November 7th, 2023 2:56 pm EDT
Key Points
- Uber’s Q3 2023 financial results missed analysts’ expectations, with earnings per share at 10 cents compared to the expected 12 cents and revenue at $9.29 billion, falling short of the anticipated $9.52 billion. Despite this, the company demonstrated strength in gross bookings, which exceeded previous guidance.
- Uber’s revenue for the quarter increased by 11% from the same period last year, with a reported net income of $221 million, or 10 cents per share. This marked a significant improvement from the net loss of $1.2 billion, or 61 cents per share, in the same quarter the previous year.
- Uber’s largest business segments, Mobility (gross bookings) and Delivery (gross bookings), performed well in Q3, with $17.90 billion and $16.09 billion, respectively. The company reported adjusted EBITDA of $1.09 billion, up $576 million year-over-year, and gross bookings for the quarter came in at $35.3 billion, reflecting a 21% year-over-year increase. For the fourth quarter of 2023, Uber expects gross bookings between $36.5 billion and $37.5 billion and adjusted EBITDA of $1.18 billion to $1.24 billion.
Uber reported its third-quarter results, which fell short of analysts’ expectations in terms of both revenue and earnings per share. The company earned 10 cents per share, missing the expected 12 cents, while its revenue of $9.29 billion fell short of the anticipated $9.52 billion. Despite these figures, Uber showed strength in gross bookings, which exceeded guidance from the previous quarter.
The company’s revenue for the quarter increased by 11% compared to the same period last year. Uber’s net income for the quarter was $221 million, or 10 cents per share, a significant improvement from the net loss of $1.2 billion, or 61 cents per share, during the same quarter in the previous year. This positive performance includes a $96 million headwind from revaluations of Uber’s equity investments.
In a prepared statement, Uber CEO Dara Khosrowshahi described the third quarter as “very strong,” highlighting growth in gross bookings, trips, and monthly active platform consumers. He noted that consumers are shifting spending from retail to services, benefiting Uber’s platform.
Uber reported adjusted EBITDA of $1.09 billion, surpassing expectations and representing a $576 million year-over-year increase. Gross bookings for the quarter amounted to $35.3 billion, a 21% year-over-year increase and higher than the company’s previous guidance.
Looking ahead to the fourth quarter of 2023, Uber anticipates reporting gross bookings between $36.5 billion and $37.5 billion, along with adjusted EBITDA in the range of $1.18 billion to $1.24 billion.
Key performance figures for Uber’s largest business segments in the third quarter were as follows:
- Mobility (gross bookings): $17.90 billion, up 31% year over year.
- Delivery (gross bookings): $16.09 billion, up 18% year over year.
- Freight business booked $1.28 billion in sales for the quarter, reflecting a 27% decline year over year.
Uber’s monthly active platform consumers reached 142 million in the second quarter, a 15% year-over-year increase. The platform completed 2.44 billion trips during the period, marking a 25% year-over-year increase.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/07/uber-earnings-report-q3-2023.html
