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Uber reportedthird - quarter earningson Tuesday that show a profitable ride - hail and saving party that ’s chug along in spite of slowing growth in some sectors .
The company reported revenue of $ 9.3 billion , an 11 % increase year over yr . Investors had expect Uber to report revenues of around $ 9.5 billion ( FactSet , Refinitiv ) , meaning that despite the fellowship ’s outgrowth , it fall suddenly of estimation . Turning to lucrativeness , Uber reported last income of $ 221 million in the third quarter , or 10 cents per share , equate with a net loss of $ 1.2 billion , or 61 cent per plowshare , in the same poop last class . Again , the company fell scant of expectations that it would generate 12 penny in per - share profit .
Uber is now a profitable , cash - get machine
expect onwards , Uber anticipates porcine bookings of $ 36.5 billion to $ 37.5 billion , up just 6 % at the top - conclusion from its Q3 result .
After reporting , shares of Uber are up 1.6 % in trading , after an up - and - down morning of share interchange .
Against a backcloth of macroeconomic uncertainness , the former inauguration pet ’s results can be consider as an reading that its business organisation model has matured and is now in a stable , profitable and cash - generating lieu . On the other hand , under - perform need results from a companionship as global as Uber could indicate that consumer spend is coming in lighter than anticipate .
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For startup inthe transportand on - requirement sector , Uber ’s earnings are a regular informational zeitgeist . So lease ’s wreak to understand where Uber ’s revenue came from in the third quarter , and how each of its top - line sources converted — or not — to bottom - line results .
Where did the money come from?
In the third quarter , Uber saw total bookings rise from $ 29.1 billion to $ 35.3 billion , a addition of around 21 % . In job segment terms , Uber generated $ 17.9 billion in drive - hailing reservation ( +31 % year over year ) , and $ 16.1 billion worth of delivery bookings ( +18 % ) . Those primal patronage groups at the company generated $ 5.1 billion and $ 2.9 billion in revenue , respectively , during the September quarter .
There ’s subtlety to the revenue figures that we ask to consider as the rule - changes in question do affect startups that go in bear on categories . On the drive - hailing front , Uber told its investors that its Q3 2023 revenue was “ negatively impacted by line model change in some countries that classified sure sales and merchandising costs as contra revenue by $ 161 million . ” That was not the only effectual alteration that led to Uber ’s results change bod . Under its delivery concern event , the company added that its revenue resultant was “ negatively impacted by business manakin change that classify certain sales and marketing costs as contra revenue by $ 360 million . ”
The commingle shock of those two items was 8 percent points of growth .
The profit perspective
From reservation to revenues to earnings : How did the main portions of Uber ’s business organization engender black ink ?
Turning to what Uber calls “ section set EBITDA , ” it ’s not hard to see how the company managed to rack up more income in its most late quarter . drive - hail adjusted profit rose to $ 1.29 billion , up 43 % from $ 898 million in the year - agone quarter , while speech catch its own profitability rocket from $ 181 million in Q3 2022 to $ 413 million in its most late fiscal period .
Uber did drop more during Q3 2023 when compare to its Q3 2022 result , but the 5 % amplification in “ Corporate G&A and Platform R&D ” costs to $ 595 million was far less than the profit we saw above . So , Uber ’s align EBITDA rose from $ 516 million in aggregate to $ 1.09 billion in the third poop of this yr .
Of of course , familiarised Earnings Before Interest Taxes Depreciation and Amortization is to profit as hidden heel in man ’s shoes are to summit , so we ’ll want some hard figure as well . In the third quarter , Uber generate $ 394 million in operating income and $ 219 million Charles Frederick Worth of nett income . commingle in $ 966 million worth of electropositive operating hard cash stream , and Uber looks very level-headed , given that all of the figures in this paragraph were betterment on its twelvemonth - agone event .
But while nutrient delivery and dart human beings about town were profitable for Uber in the quarter , the last major dower of its business had a more lackluster quarter .
Freight falls
One sphere that continues to drag on Uber is its freight business .
While Uber ’s ride - hailing and obstetrical delivery business saw an uptick in arrant engagement in the third quartern , Uber Freight experienced a 27 % fall class - over - year . taxation , as a result , had a exchangeable fall .
The stage business unit of measurement report revenue of $ 1.3 billion in the third quarter , a 27 % drop cloth from the same period last class . On a quarter - over - quarter basis , Uber Freight had a 1 % gain in revenue .
The results do n’t get any better once we work to net income . On an adjusted base , Uber Freight lose $ 13 million in the third quarter compare to a $ 1 million net profit in the same quarter last twelvemonth .
Uber said the dismal twelvemonth - over - yr revenue outcome for its lading business was driven by lower revenue per load and volume . Both are consequences of the challenging shipment market cycle .
Tepid investor reaction clouds Lyft ’s raw scheme
Uber Freight is n’t alone . Other more late entrants to the shipment and logistics diligence such asFlexportand Convoy have struggled this year . In Convoy ’s face , the commercial enterprise was impel to exclude down with its assetsgobbled up by Flexport .
Uber Freight continues to plug away along , despite these economical headwinds . The head is whether Uber believe in the long - terminus income potential of freight rate .
So what?
When discuss Uber ’s termination internally , our vibe was that it is a very profitable and levelheaded company today , albeit one that is not growing as tight as the market had hoped . The fact that Uber ’s share price is up as we publish this indicate that investor are contented thus far to excuse the small-scale Q3 girl and keep their eyes more focused on its year - over - class improvements and forward guidance . More when we get Lyft ’s numbers .
