Uber reported third-quarter revenue above analyst estimates, but missed expectations in both its mobility and delivery units. A jump in freight sales drove the beat, while the company pointed to fuel costs and driver availability overseas.
Uber reported revenue of $14.77 billion for the third quarter, against $14.69 billion expected by analysts in an LSEG compilation. The company still missed estimates in its two key businesses.
Freight carries the revenue beat
Revenue increased 10% from $13.47 billion a year earlier. Net income came in at $512 million, down 92% from a year earlier, when the company had a $4.9 billion benefit from a tax valuation release.
Earnings per share were 25 cents versus 96 cents expected.
The beat came from the freight division, where sales jumped 34% to $1.76 billion, topping the StreetAccount consensus of $1.49 billion.
Mobility and delivery trail estimates
Mobility, Uber's ride-hailing service, saw revenue decline 2% to $7.52 billion, missing the average estimate of $7.71 billion, according to StreetAccount. Food delivery revenue increased 23% to $5.49 billion, trailing the $5.51 billion average estimate.
CEO Dara Khosrowshahi said in prepared remarks that mobility performed slightly below expectations overseas. He said elevated fuel prices and tighter driver availability weighed on supply growth in several international markets, and that Uber is making targeted investments to strengthen driver supply.
Total bookings of $59.82 billion were about in line with the $59.83 billion average analyst estimate.
Driverless fleet and fourth-quarter outlook
Uber plans to have over 2,000 automated vehicles on its platform by the end of 2027, half operating in the U.S. and half internationally. It expects around 700 by the end of the year, adding Zoox and Motional robotaxis in Las Vegas this quarter.
On delivery, Uber is growing through acquisitions of Delivery Hero in Germany and ezCater in the U.S. Khosrowshahi said a recently expanded partnership with Costco is "tracking ahead of expectations."
For the fourth quarter, Uber sees overall bookings of $64.5 billion at the mid-point of its forecast, in line with the StreetAccount average estimate of $64.26 billion.
Source: CNBC
Trading involves risk.
Risk Disclaimer
