Uber Q3 2022 earnings

Uber Q3 2022 earnings

Uber CEO Dara Khosrowshahi speaks at a product launch event in San Francisco, California on September 26, 2019.

Philip Pacheco | AFP via Getty Images

Uber reported by a third quarter loss on Tuesday but it beat analysts’ estimates for revenue and gave strong guidance for the fourth quarter. Its shares were up about 15% early Tuesday morning.

Here’s how the company worked:

  • Loss per share: A loss of 61 cents compared to a loss of 22 cents expected by analysts, according to Refinitiv.
  • income: $8.34 billion versus $8.12 billion expected by analysts, according to Refinitiv.

Uber reported a net loss of $1.2 billion in the third quarter, of which $512 million was attributed to the revaluation of Uber’s equity investments, the company said in a statement. Revenues increased by 72% compared to the previous year.

In a prepared statement, CEO 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 company’s best month ever for mobility and the company’s total gross booking.” However, he warned that the company has learned after a few years not to take anything for granted.

“With continued cost rigor, headcount discipline and a balanced approach to capital allocation, supported by our leading technical and operational capabilities, we are well positioned to deliver growing profitability in the coming quarters,” Khosrowshahi said.

The company reported a record adjusted EBITDA of $516 million, beating estimates 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, as well as adjusted EBITDA of $600 million to $630 million. Analysts polled by Refinitiv expect $568 million in adjusted EBITDA for the fourth quarter.

Here’s how Uber’s largest business segments performed in the quarter:

Mobility (gross bookings): $13.7 billion, which fell short of analyst estimates of $13.83 billion, according to StreetAccount.

Delivery (gross bookings): $13.7 billion, which fell short of analyst estimates of $14.01 billion, according to StreetAccount.

Uber has relied heavily on growth in its Eats delivery business during the Covid pandemicbut its mobility segment outperformed Eats revenue in its first and second quarters as riders began to travel more. That trend continued during the third quarter, as the company’s mobility segment reported $3.8 billion in revenue, while shipping reported $2.8 billion.

Uber’s freight business generated $1.75 billion in sales.

The number of monthly active users of the platform rose to 124 million in the third quarter, an increase of 14% compared to the previous year. 1.95 billion trips were made on the platform during the period, an increase of 19% compared to the previous year.

Khosrowshahi told CNBC “Squawk Box“On Tuesday, the company recovered by 80 percent in terms of the number of drivers who returned to the service.

Uber shares are down more than 36% so far this year. Shares fell more than 10% in October after Biden’s Labor Department published a proposal it could pave the way for regulators and courts to reclassify gig workers as employees. The proposed rule could increase costs for companies like Uber, LyftInstacart and DoorDash who 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 disagree, saying companies use the contractor model to cut costs and deny workers important protections.

Uber also had to contend with high gas prices and inflation, but Khosrowshahi told CNBC’s “TechCheck” September that the supply side could actually benefit from an inflationary environment.

As costs rise and people pay more for essentials like groceries, he said they’re also signing up for Uber.

“If anything, 72% of US drivers say one of the reasons they signed up to drive with Uber was actually inflation,” he said.

CNBC’s Lauren Feiner contributed to this report.

#Uber #earnings

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