Uber reported revenue for the third quarter that topped analysts’ estimates, but the company missed expectations in its two key businesses. Shares of the ride-hailing service rose more than 7% on Wednesday.
Here’s how the company did versus analysts’ estimates compiled by LSEG:
- Earnings per share: 25 cents vs. 96 cents expected
- Revenue: $14.77 billion vs. $14.69 billion expected
Revenue increased 10% from $13.47 billion a year earlier. The company reported net income of $512 million, down 92% from a year earlier, when the company had a $4.9 billion benefit from a tax valuation release.
Uber’s core mobility unit, which is its ride-hailing service, saw a 2% decline in revenue to $7.52 billion, missing the average estimate of $7.71 billion, according to StreetAccount. Revenue in the food delivery business increased 23% to $5.49 billion, trailing the $5.51 billion average estimate.
Total bookings of $59.82 billion were about in line with the $59.83 billion average analyst estimate, according to StreetAccount.
Uber’s revenue beat was due to growth in its freight division. Sales jumped 34% to $1.76 billion, topping the StreetAccount consensus of $1.49 billion,
Uber CEO Dara Khosrowshahi said, in prepared remarks ahead of a scheduled call, that the company’s core mobility segment performed slightly below expectations overseas.
“Elevated fuel prices and tighter driver availability weighed on supply growth in several international markets,” he said, adding that Uber is making “targeted investments to strengthen driver supply.”
In a CNBC interview, Khosrowshahi emphasized that Uber has “more demand” than supply, especially for its mobility services.
“We don’t want to raise prices on our customers,” he said, adding that the company is also doing what it can to avoid longer wait times. Uber is “investing significantly” in bringing more drivers on board in India, Brazil, and the U.S. to meet demand, he said.
Uber has also committed about $10 billion in capital to bring more driverless vehicles to its platform, the CEO said, through an array of partnerships and investments in companies including Rivian, Nuro, AVRide and others developing robotaxis and driverless trucks.
Near-term, Uber plans to have over 2,000 automated vehicles available on its platform by the end of 2027, half operating in the U.S. and half internationally. It expects to have around 700 available on its platform by the end of the year, adding Amazon’s Zoox and Motional robotaxis to its platform in Las Vegas this quarter.
Uber is also growing its delivery business through acquisitions of Delivery Hero in Germany and ezCater in the U.S.
In its Uber Eats business, a recently expanded partnership with Costco in the U.S. is “tracking ahead of expectations,” Khosrowshahi said. The company said Costco is now one of its top merchants in terms of gross bookings.
For the fourth quarter, Uber sees overall bookings of $64.5 billion at the mid-point of its forecast, in line with the average StreetAccount estimate of $64.26 billion.
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