Uber reported third-quarter revenue that beat analysts’ estimates, but the company missed expectations in its two key businesses.
Here are the company’s results compared to analyst estimates compiled by LSEG:
- Earnings per share: 25 cents versus 96 cents expected
- Income: $14.77 billion versus $14.69 billion expected
Revenue rose 10% from $13.47 billion a year earlier. The company reported net income of $512 million, down 92% from the previous year, when it enjoyed a $4.9 billion profit from the release of a tax assessment.
Uber’s core mobility unit, its ride-hailing service, saw revenue fall 2% to $7.52 billion, missing the average estimate of $7.71 billion, according to StreetAccount. Food delivery industry revenue rose 23% to $5.49 billion, below the average estimate of $5.51 billion.
Total bookings of $59.82 billion were roughly in line with analysts’ average estimate of $59.83 billion, according to StreetAccount.
Uber’s revenue increase is due to the growth of its freight division. Sales jumped 34% to $1.76 billion, beating the StreetAccount consensus of $1.49 billion.
Uber CEO Dara Khosrowshahi said in prepared remarks ahead of a planned call that the company’s main mobility segment performed slightly below expectations overseas.
“High fuel prices and tighter driver availability have weighed on supply growth in several international markets,” he said, adding that Uber is making “targeted investments to strengthen driver supply.”
The company plans to have more than 2,000 automated vehicles on its platform by the end of 2027, with half operating in the United States and half internationally. It expects to have around 700 available on its platform by the end of the year, adding from Amazon Zoox and Motional robotaxis on its platform in Las Vegas this quarter.
Uber is also growing its delivery business through the acquisitions of Delivery Hero in Germany and ezCater in the United States.
In its Uber Eats business, a recently expanded partnership with Costco in the United States “exceeds expectations,” Khosrowshahi said. The company said Costco is now one of its top retailers in terms of gross bookings.
For the fourth quarter, Uber forecasts overall bookings of $64.5 billion at the midpoint of its guidance, matching StreetAccount’s average estimate of $64.26 billion.
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