🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Uber forecasts robust Q4 after strong Q3 performance

EditorAmbhini Aishwarya
Published 07/11/2023, 12:40
© Reuters
UBER
-

Uber Technologies Inc . (NYSE:UBER) has reported a promising Q3 performance, with an 11% YoY increase in revenue to $9.29 billion, and a net income of $221 million. This marks a significant turnaround from the previous year's net loss of $1.2 billion. The company also saw growth in gross bookings, trips, and monthly active platform users, highlighting a consumer shift from retail to services.

Despite the positive performance, Uber's Q3 revenue did fall short of London Stock Exchange Group's (LON:LSEG) prediction due to a $96 million headwind from equity revaluations. The earnings per share were also slightly below expectations at 10 cents, compared to the anticipated 12 cents.

In premarket trading following the Q3 report, Uber shares experienced some fluctuations due to the revenue shortfall. The company reported earnings of $9.3 billion, which was less than FactSet's anticipated $9.5 billion.

However, Uber outperformed expectations in other areas such as gross bookings, which reached $35.3 billion, exceeding the consensus estimate of $34.6 billion. The company's adjusted EBITDA of $1.09 billion also surpassed StreetAccount's estimate.

CEO Dara Khosrowshahi attributed Uber's "profitable growth at scale" to the consumer shift from retail to services and expressed optimism about the company's future.

Looking ahead to Q4, Uber has forecasted gross bookings between $36.5 billion and $37.5 billion and an adjusted EBITDA from $1.18 billion to $1.24 billion.

Among Uber's segments, Mobility and Delivery saw YoY growth in gross bookings of 31% and 18%, reporting revenues of $5.07 billion and $2.93 billion respectively. However, the freight segment faced challenges with a 27% YoY decline in sales at $1.28 billion.

The platform reported 142 million monthly active consumers, marking a 15% YoY increase, and completed 2.44 billion trips during the quarter.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.