Uber Beats Its Eats

Uber just delivered investors and traders a nice present start to November: a big +13% pre-market open on some positive earning data. 

Here are some highlights from Uber’s Third Quarter, via CNBC:

  • Mobility (gross bookings): $13.7 billion, missed analysts’ estimates of $13.8 billion
  • Delivery (gross bookings) $13.7 billion, missed analysts’ estimates of $14.01 billion
  • Loss per share: $0.61, missing analysts’ estimates of $0.22
  • Revenue: $8.34 billion, beating analysts’ estimate of $8.12 billion
  • Adjusted EBITDA: $516 million, beating analysts’ estimates of $457.7 million

Hugenormous revenue growth YoY of 72% was a big boon, especially with the adjusted EBITDA of $516 million – a record high. 

Rides sharing revenue beat the Uber Eats side of the business. And fears that inflation might be hitting its customers, so far, haven’t deterred people from seeking rides or food delivery. 

Interestingly, the rise in the cost of living has, um, driven more people to become Uber drivers. Uber reports that the number of their drivers returned to 2019 levels. 

Addressing questions and concerns that demands for rides and food delivery may cool off due to inflation, CEO Khosrowhahi said, It continues to be stable, et cetera, a little bit this quarter. And I think for Q4, we expect it to be stable to up a little bit as well. At this point, we’re not seeing weakness. We’re definitely watching out for it.

Investors thus far appear to be shaking off the net loss due to falling values in Uber’s Didi Global Inc (China), Aurora Innovation, and Grab Holdings (Southeast Asia) stakes. 

Q4 Outlook

  • Gross Bookings to grow from 23% to 27%. 
  • Adjusted EBITDA of $600 million to $630 million

At the time of writing, shares of $UBER remain positive for the day, though slightly off its high of $30.99 (+16.67%). With the NASDAQ down over 1%, we’ll have to see how Uber holds up before tomorrow’s interest rate decision.

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