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Uber’s Third-Quarter Results Miss Analysts’ Expectations

Uber has released the results of its activities for the third quarter of this year.

Uber's Third-Quarter Results Miss Analysts’ Expectations

These results did not meet analysts’ expectations. At the same time, it is clear that, in general, the performance indicators of the mentioned company for the period from July to September are not absolutely and totally negative. The positive financial dynamic was recorded in many areas of Uber’s activities.

The company’s earnings per share amounted to 10 cents. At the same time, analysts at LSEG, formerly known as Refinitiv, predicted. that this indicator will be fixed at the level of 12 cents.

The company’s revenue in the last quarter amounted to $9.29 billion. This figure is 11% higher than the result for the same period in 2022. At the same time, the revenue volume is below the expectations of LSEG analysts. Experts predicted that the revenue figure would be $9.52 billion.

Uber CEO Dara Khosrowshahi, during a conversation with media representatives, said that revenue for the third quarter could have been 8% higher if the company had not begun to reclassify some expenses to stimulate the development of Uber Eats business in the period from July to September. The redirection of funding has led to a decrease in the amount of funds designed to implement marketing efforts.

The company’s net profit for the third quarter was fixed at $ 221 million. For the same period last year, Uber’s net loss amounted to $1.2 billion.

On Tuesday, November 7, the price of the company’s shares on the premarket showed negative dynamics. This indicator decreased by less than 1%.

Dara Khosrowshahi said that last quarter was a good period for Uber. According to him, an increase in the number of bookings and trips was recorded from July to September. Also in the third quarter, there was a positive trend in the number of monthly active users of the Uber platform. The head of the company stated that there are advantages for the brand’s business in the fact that consumers transfer costs from retail to services.

Mr. Khosrowshahi said that the company’s results for the third quarter are evidence that Uber continues to provide large-scale profitable growth. He also noted that the brand has good prospects regardless of what circumstances and conditions will shape the content of the macroeconomic situation.

During a conversation with media representatives, the head of Uber said that the company does not conduct business in Israel or Gaza, which is why the armed conflict in this region has not become a factor of direct influence on the brand’s results. According to him, the Middle East accounts for about 2% of the total volume of the firm’s bookings.

Uber reported adjusted EBITDA of $1.09 billion in the third quarter. A year earlier, this figure was fixed at $576 million. The result also exceeded the expectations of analysts who predicted EBITDA of $1.02 billion.

The total value of Uber customer orders for the period from July to September amounted to $35.3 billion. This figure is 21% higher than the result for the third quarter of last year.

The company expects that according to the results of its activities in the period from October to December of this year, gross bookings in the range of $36.5 billion to $37.5 billion will be recorded.

The total number of bookings in the third quarter brought the brand a profit of $17.9 billion. This figure is 31% higher than the result for the same period last year.

The head of Uber said that in difficult times, larger companies or smarter companies with better technologies can achieve results. In his opinion, the current moment is suitable for the success of Uber freight.

Dara Khosrowshahi, in his speech prepared for the conference call, said that the company’s advertising business continues to expand profitably, as the base of advertisers has grown by more than 70% pre-year.

Last quarter, Uber expanded the functionality of its app. This step was made to increase the company’s competitiveness in the sphere of food, where other large players are DoorDash and Instacart. Uber has implemented ordering capabilities in several stores.

As we have reported earlier, Uber and PayPal Extend Their Partnership.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.