TLDR
- Uber (UBER) posted adjusted earnings of 88 cents per share, beating the 86 cent estimate.
- Revenue rose 10% to $14.76 billion, above the $14.65 billion forecast.
- Delivery bookings grew 22%, while mobility bookings missed estimates.
- Q4 guidance came in slightly below analyst targets for earnings and bookings.
- Uber plans to invest up to $10 billion in robo-taxis.
Uber (UBER) stock edged higher in premarket trading Wednesday, rising 1.1% to $67.35. The move followed a third-quarter report that beat on profit and sales.
The stock slipped 0.1% in Tuesday’s session. It is still down 20% for the year through Tuesday’s close.
Adjusted earnings came in at 88 cents per share, above the 86 cents analysts expected. Revenue rose 10% to $14.76 billion, topping the $14.65 billion estimate.
Gross bookings climbed 20% to $59.82 billion. That landed a hair under the $59.83 billion forecast.
Delivery Creeps Up on Rides
Delivery bookings grew 22% to $28.54 billion. Mobility bookings rose 18% to $29.51 billion, short of the $29.8 billion estimate.
Freight bookings jumped 35% to $1.77 billion. Trips rose 16% to 4.06 billion.
Monthly active consumers grew 14% to 215 million. Stock-based compensation rose 27% to $591 million.
Adjusted EBITDA rose 31% to $2.96 billion. The margin on gross bookings widened to 5% from 4.5% a year ago.
Adjusted operating income was $2.3 billion. Uber also said the Middle East conflict trimmed mobility bookings growth by 75 basis points in the quarter.
Guidance Lands a Bit Light
For the fourth quarter, Uber expects gross bookings of $63.25 billion to $65.25 billion. Analysts were looking for $64.29 billion.
Adjusted earnings are guided to $0.95 to $0.99 per share, against an estimate of $1. Adjusted EBITDA is expected at $3.13 billion to $3.23 billion, versus the $3.15 billion forecast.
Uber assumes a 100 basis point hit to mobility bookings growth from the Middle East conflict in the fourth quarter. CEO Dara Khosrowshahi told CNBC that ride demand is outrunning supply.
Instead of raising prices, he said Uber will add vehicles. The company plans 700 driverless vehicles on its platform by the end of 2026, growing to more than 2,000 in 2027.
Uber expects tens of thousands of autonomous vehicles by 2030. It plans to invest up to $10 billion in robo-taxis, with $7.5 billion going to its own fleet and $2.5 billion to equity stakes in self-driving firms.
Uber has deals with Rivian and Lucid, and works with Alphabet’s Waymo in Phoenix and Atlanta. It also partnered with Nvidia on robo-taxis in 28 cities worldwide by 2028.
Last month, Uber said it would buy catering platform ezCater for $2.3 billion. In July, it launched a $14.8 billion takeover offer for Delivery Hero.
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