Uber Announces Record Rides Given While Stocks Drop

Uber Technologies Inc. just released its financial results for the third quarter of 2023, showcasing a strong performance across all key metrics.

Uber’s gross bookings marked a noteworthy increase of 21% year-over-year (YoY) to reach $35.3 billion. The growth was reflected in both its mobility and delivery services, with gross bookings of $17.9 billion (up by 31% YoY) and $16.1 billion (an 18% YoY increase), respectively. The company also documented impressive growth in daily trips, recording a YoY increase of 25%. This comes down to roughly 27 million trips per day, suggesting Uber’s customer base and market foothold are expanding.

Uber reported an 11% YoY growth in revenue, totaling $9.3 billion. The combined revenue from mobility and delivery services showed an even stronger growth of 21%, touching the $8 billion mark. Moreover, Uber’s income from operations demonstrated a significant rise, with an increase of $889 million YoY to reach $394 million.

Despite a pre-tax headwind of $96 million, primarily resulting from net unrealized losses due to the revaluation of Uber’s equity investments, the company still recorded a net income of $221 million. Uber also reported a YoY rise of $576 million in its adjusted EBITDA, totaling $1.1 billion. The adjusted EBITDA margin as a percentage of gross bookings also saw a positive shift from 1.8% in Q3 2022 to 3.1%, indicating a promising increase in profitability.

Uber recorded a net cash flow of $966 million from operating activities. After adjusting for capital expenditures, the free cash flow remained strong at $905 million, even after accounting for a $622 million cash outflow for HMRC VAT assessment payments. By the end of Q3, Uber presented an unrestricted cash balance, along with cash equivalents and short-term investments, totaling $5.2 billion and reflecting a robust liquidity position.

“Our relentless focus on improving the product experience for both consumers and drivers continued to power profitable growth, with trip growth accelerating to 25%. Uber’s core business is stronger than ever as we enter the busiest period of the year.”

Dara Khosrowshahi, Uber CEO

Uber’s “forecast fourth-quarter gross bookings and adjusted core profit above market expectations on Tuesday, betting that the holiday season would boost demand for its ride-hailing and food-delivery services,” according to Yahoo Finance.

Uber’s Q3 profit of $1.09 billion surpassed expectations, but its revenue growth fell short due to accounting changes. Despite difficulties throughout 2022, the company experienced gains from businesses’ return-to-office trend. Uber expects Q4 gross bookings to range from $36.5 billion to $37.5 billion. However, its Q3 revenue growth was its slowest since Q1 2021, rising only 11% to $9.29 billion. While its core ride-sharing services saw 33% growth, delivery revenue only rose 6%, missing the expected 16% increase.

This news led to a 1.7% drop in Uber shares.