Uber Q3 Revenue Tops Estimates at $14.77 Billion as Gross Bookings Grow 20%, but Mobility Revenue Slips

UBER reported third-quarter revenue of $14.77 billion, up 10% from $13.47 billion a year earlier and ahead of the $14.69 billion analysts expected, according to LSEG figures cited by CNBC. Gross bookings grew 20% to $59.82 billion, roughly in line with the $59.83 billion StreetAccount estimate. Adjusted EPS came in at $0.88 against a $0.86 consensus, and adjusted EBITDA rose 31% to $2.96 billion. Shares rose more than 7% on Wednesday.

The beat came from freight rather than the core businesses. Freight revenue jumped 34% to $1.76 billion against a $1.49 billion consensus, while mobility revenue fell 2% to $7.52 billion, short of the $7.71 billion estimate, and delivery revenue rose 23% to $5.49 billion, just under the $5.51 billion estimate. The mobility revenue decline came even as mobility gross bookings rose 18% to about $29.5 billion, and Uber's earnings release said business model changes cut total revenue growth by 8 percentage points. CEO Dara Khosrowshahi said "elevated fuel prices and tighter driver availability weighed on supply growth in several international markets," adding that Uber has more demand than supply and does not want to raise prices.

On a GAAP basis the quarter looks weaker. Net income was $512 million, down 92% from a year earlier, when results included a $4.9 billion benefit from a tax valuation release. GAAP diluted EPS was $0.25, held down by a $476 million pre-tax loss on revaluations of Uber's equity investments, according to the company's release. That gap between GAAP and adjusted results is mostly accounting, but it explains why some headlines called the quarter a profit miss and others a beat.

For the fourth quarter, Uber guided gross bookings to $63.25 billion to $65.25 billion against a $64.29 billion estimate, and adjusted EBITDA to $3.13 billion to $3.23 billion against $3.15 billion. Investing.com reported that the Middle East conflict was a 75 basis point drag on third-quarter mobility bookings growth, with a 100 basis point hit assumed for the fourth quarter. On autonomy, Uber has committed about $10 billion to bring driverless vehicles onto its platform, expects around 700 available by the end of this year, and targets more than 2,000 by the end of 2027. Driver supply in international markets and the pace of the robotaxi rollout are the items to watch.