Uber Q3 Profit Surges On Higher Trips, Sees Growth In Q4; But Stock Drops

(RTTNews) - Uber Technologies, Inc. reported Tuesday significantly higher profit in its third quarter as revenues beat market estimates, benefited by strong growth in trips. Bookings also were higher than last year, and the ride-hailing and food delivery company issued fourth-quarter outlook, expecting a growth.

Meanwhile, the shares were losing around 5 percent in the pre-market activity to trade at $95.28.

Dara Khosrowshahi, CEO, said, "Uber's growth kicked into high gear in Q3, marking one of the largest trip-volume increases in the company's history. We're building on that momentum by investing in lifelong customer relationships, leaning into our local commerce strategy, and harnessing the transformative potential of AI and autonomy."

For the fourth quarter, the company anticipates adjusted EBITDA of $2.41 billion to $2.51 billion, which represents 31 percent to 36 percent year-over-year growth.

Gross Bookings are projected to be in the range of $52.25 billion to $53.75 billion, representing growth of 17 percent to 21 percent from last year on a constant currency basis.

In the third quarter, Uber's bottom line totaled $6.626 billion or $3.11 per share, 154 percent higher than $2.612 billion or $1.20 per share last year.

The latest results included a $4.9 billion benefit from a tax valuation release and a $1.5 billion net benefit (pre-tax) from revaluations of Uber's equity investments, while the prior year's net benefit from revaluations was $1.7 billion.

Analysts on average had expected the company to earn $0.69 per share. Analysts' estimates typically exclude special items.

Adjusted EBITDA was $2.3 billion, up 33 percent year-over-year.

The company's revenue for the period rose 20.4 percent to $13.467 billion from $11.188 billion last year. The Street expected revenues of $13.26 billion for the quarter.

Trips during the quarter grew 22 percent year-over-year to 3.5 billion, driven by Monthly Active Platform Consumers or MAPCs growth of 17 percent and monthly Trips per MAPC growth of 4 percent from last year.

Gross Bookings climbed 21 percent from the prior year to $49.7 billion, or 21 percent on a constant currency basis.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.