Uber Stock Dips Premarket As Q3 Gross Bookings Disappoint: Retail Reaction Mixed

Shares of Uber Technologies Inc ($UBER) fell over 9% in Thursday’s pre-market trading despite the firm reporting upbeat results as gross bookings failed to meet Wall Street expectations.

Uber reported a 20% year-over-year (YoY) growth in its revenue to $11.2 billion, beating an estimate of $10.98 billion. Gross Bookings grew 16% YoY to $41 billion versus an estimate of $41.25 billion. The company reported an earnings per share of $1.20.

Income from operations rose 169% YoY to $1.06 billion, crossing the billion dollar mark for the first time ever.

CFO Prashanth Mahendra-Rajah said Uber is on track to deliver 20% gross bookings growth on a constant currency basis for the full year.

“We remain committed to returning capital to shareholders through repurchases, while strategically investing in organic growth vectors that will position us to capture the significant opportunities ahead,” he said.

The company’s Mobility segment revenue grew 26% YoY to $6.41 billion, primarily driven by an increase in gross bookings due to an increase in trip volumes. The revenue margin for the segment increased 220 basis points to 30.5%. The Delivery segment revenue grew 18% YoY to $3.47 billion.

For the fourth quarter, the company expects gross bookings of $42.75 billion to $44.25 billion, which represents 16% to 20% YoY growth on a constant currency basis.

Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) is expected to come in at $1.78 billion to $1.88 billion, which represents 39% to 47% YoY growth.

Stocktwits users posted mixed reactions to the earnings announcement. One user expressed skepticism on the firm’s business model.

Another user, however, opined that revenue assumes more importance than gross bookings.

Before considering the pre-market slide on Thursday, Uber shares have recorded gains of over 36% on a year-to-date basis.

Also See: AbbVie Stock Jumps After Upbeat Q3 Earnings, Revised Guidance: Retail Sentiment Hits One-Year High

For updates and corrections email newsroom@stocktwits.com

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