Uber Delivers Solid Earnings, But Tepid Q4 Guidance Sends Stock Lower

• In Q3, the company’s revenue increased 20% to $13.5 billion. 
• While revenue from the company’s delivery segment rose 29% to $4.5 billion in the quarter, revenue from the mobility segment grew 20% to $7.7 billion, even as freight division revenue remained flat year-on-year.
• Adjusted EBITDA rose 33% to $2.3 billion in the quarter, above an analyst estimate of $2.27 billion.
   

Uber Technologies, Inc. (UBER) reported a stronger-than-expected third-quarter earnings, but a soft forecast for the forthcoming quarter weighed on investor sentiment, sending its shares lower in the pre-market session.

The ride-hailing firm now expects gross bookings in the fourth quarter to be between $52.25 billion and $53.75 billion, representing a year-over-year growth of 17% to 21% on a constant currency basis.

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) in the busiest quarter of the year is expected to be $2.41 billion to $2.51 billion, representing 31% to 36% growth. This is, however, marginally below the $2.49 billion expected by Wall Street analysts.

Q3 Numbers

In the third quarter, the company’s revenue increased 20% to $13.5 billion, driven by a 21% rise in gross bookings to $49.7 billion, primarily due to growth in the company’s mobility and delivery businesses. This is higher than the $13.3 billion expected by analysts, according to data from Fiscal AI.

Trips in the quarter grew 22% to 3.5 billion, marking the largest trip volume increase in Uber’s history outside the post-COVID-19 rebound, CEO Dara Khosrowshahi noted.

While revenue from the company’s delivery segment rose 29% to $4.5 billion in the quarter, revenue from the mobility segment grew 20% to $7.7 billion, even as freight division revenue remained flat year-on-year. The company is now expanding its delivery business with partnerships with more grocery and retail merchants.

Uber's adjusted EBITDA rose 33% to $2.3 billion in the quarter, above an analyst estimate of $2.27 billion.

How Did Stocktwits User React?

Uber shares slipped 7% in the pre-market session at the time of writing. On Stocktwits, retail sentiment around Uber stayed within the 'bullish' territory over the past 24 hours, while message volume rose from 'high' to 'extremely high' levels.

UBER stock is up by 65% this year and by about 36% over the past 12 months. 

Read also: Tesla’s China-Made EV Sales Reportedly Drop 10% In October, Lowest Since May

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