Uber CEO Dara Khosrowshahi speaks at a product launch event in San Francisco, California on September 26, 2019.
Filip Pacheco | AFP via Getty Images
Uber reported a third-quarter loss on Tuesday, but beat analysts’ estimates for revenue and showed a rise in bookings. Shares rose about 9% in premarket trading.
Here’s how the company did it:
- Loss per share: 61 cents
- Income: $8.34 billion versus the $8.12 billion expected by analysts, according to Refinitiv.
Uber reported a net loss of $1.2 billion for the third quarter, of which $512 million was attributed to the revaluation of Uber’s equity investments, the company said in a statement.
In a prepared statement, Chief Executive Officer Dara Khosrowshahi said Uber had a “strong quarter” and benefited from booming travel, easing quarantines and changes in consumer spending. He said October will be “the best month ever for the company for both mobility and total gross bookings for the company.” However, he cautioned that the company has learned not to take anything for granted after the last few years.
“With continued cost rigor, headcount discipline and a balanced approach to capital allocation, all supported by our leading technical and operational capabilities, we are well positioned to deliver increased profitability in the coming quarters,” Khosrowshahi said.
The company reported record adjusted EBITDA of $516 million, beating expectations of $440 million to $470 million and ahead of analysts’ 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 on a constant currency basis, and adjusted EBITDA of $600 million to $630 million.
Here’s how Uber’s largest business segments performed in the quarter:
Mobility (gross bookings): $13.7 billion, missing analyst estimates of $13.83 billion, according to StreetAccount.
Delivery (gross reservations): $13.7 billion, missing analyst estimates of $14.01 billion, according to StreetAccount.
Uber has relied heavily on the growth of its Eats delivery business during the pandemic, but its mobility segment outperformed Eats’ revenue in the first and second quarters as drivers began to travel more. That trend continued during the third quarter, as Uber’s mobility segment posted revenue of $3.8 billion, while delivery reported $2.8 billion.
Uber’s cargo business recorded $1.75 billion in sales.
The number of monthly active users of the platform rose to 124 million in the third quarter, which is 14% more than the previous year. During this period, 1.95 billion trips were made on the platform, which is 19% more than the previous 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 released a proposal that could pave the way for regulators and courts to reclassify gig workers as employees. The proposed rule could increase costs for companies like Uber, Lyft, Instacart and DoorDash that rely on contract workers to pick up shifts on their own time.
Companies have argued that flexible schedules are attractive to workers, but some labor experts and activists disagreed, saying companies use the contractor model to cut their own costs and deny workers important protections.
Uber has also had to contend with high gas prices and inflation, but CEO Dara Khosrowshahi told CNBC’s “TechCheck” in September that its supply side may actually benefit from an inflationary environment.
As costs rise and people pay more for essentials like groceries, he said they are also signing up to drive for Uber.
“If anything, 72% of U.S. drivers say one of the reasons they signed up to drive with 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.