December 3, 2022

Health & Fitness Journal

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Results of Uber Q3 2022

3 min read

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 a third-quarter loss on Tuesday, but it beat analysts’ revenue estimates and issued strong fourth-quarter guidance. Shares are up about 12% in premarket trading.

Here’s how the company did it:

Loss per share: 61 cents loss versus 22 cents loss expected by analysts, according to Refinitiv. Revenue: $8.34 billion versus $8.12 billion expected by analysts, according to Refinitiv.

Uber reported a net loss of $1.2 billion for the third quarter, of which $512 million was attributed to revaluations of Uber’s holdings, according to a company release. Revenue increased 72% year over year.

In a prepared statement, CEO Dara Khosrowshahi said Uber delivered a “strong quarter,” benefiting from booming travel, easing and shifts in consumer spending. He said October was the “best month ever for the company, both for Mobility and for the company’s overall gross bookings.” However, he warned that the company had learned in recent years not to take anything for granted.

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

The company reported record Adjusted EBITDA of $516 million, according to StreetAccount, beating guidance of $440 million to $470 million and beating analyst estimates of $457.7 million. Gross bookings for the quarter were $29.1 billion, up 26% year over year.

For the fourth quarter of 2022, Uber expects gross bookings to grow between 23% and 27% year over year on a constant currency basis and Adjusted EBITDA to be between $600 million and $630 million. Analysts polled by Refinitiv were expecting adjusted EBITDA of $568 million for the fourth quarter.

Here’s how Uber’s top business segments performed during the quarter:

Mobility (gross bookings): $13.7 billion, down from analyst estimates of $13.83 billion according to StreetAccount.

Delivery (gross bookings): $13.7 billion, down from analyst estimates of $14.01 billion according to StreetAccount.

Uber has relied heavily on growing its Eats delivery business during the pandemic, but its mobility segment outperformed Eats’ revenue in Q1 and Q2 as riders began making more trips. That trend continued in the third quarter, when Uber’s mobility segment posted revenue of $3.8 billion, while delivery posted $2.8 billion.

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

The number of monthly active platform users rose to 124 million in the third quarter, up 14% year over year. 1.95 billion trips were made on the platform during the reporting period, up 19% year-on-year.

CEO Dara Khosrowshahi told Health & Fitness Journal’s Squawk Box on Tuesday that the company has also recovered 80% of the number of drivers who have returned to service.

Uber’s stock is down more than 36% so far this year. The stock plunged more than 10% in October after the Biden Department of Labor released a proposal that could pave the way for regulators and courts to reclassify gig workers as employees. The proposed rule could increase costs for companies like Uber, Lyft, Instacart and DoorDash, which rely on contract workers to pick up shifts in their own time.

Companies have argued that flexible working hours are attractive to workers, but some labor experts and campaigners disagreed, saying companies are using the contractor model to cut their own costs and deny workers key protections.

Uber has also struggled with high gas prices and inflation, but Khosrowshahi told Health & Fitness Journal’s TechCheck in September that its supply side could actually benefit from the inflationary environment.

As spending increases and people pay more for essentials like groceries, they are also signing up for Uber.

“If anything, 72% of drivers in the US say one of the considerations when they signed up to ride Uber was actually inflation,” he said.

Uber will hold its quarterly conference call with investors on Tuesday at 8:00 a.m. ET.

— Health & Fitness Journal’s Lauren Feiner contributed to this report.

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