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Uber shares drop despite Q3 earnings, revenue beat

Published 10/31/2024, 07:14 AM
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Investing.com -- Uber Technologies, Inc. (NYSE: UBER) reported better-than-expected third-quarter earnings and revenue on Tuesday, but shares fell 6.3% as investors appeared unimpressed with the results.

The ride-hailing and food delivery giant posted adjusted earnings per share of $1.20, significantly beating analyst estimates of $0.37. Revenue came in at $11.19 billion, surpassing the consensus forecast of $10.99 billion and representing a 20% year-over-year increase.

Uber (NYSE:UBER)'s gross bookings, a key metric measuring the total dollar value of rides and deliveries, grew 16% YoY to $41.0 billion. Mobility gross bookings rose 17% to $21.0 billion, while Delivery gross bookings increased 16% to $18.7 billion.

The company reported income from operations of $1.1 billion, marking the first time it has surpassed $1 billion in quarterly operating income. Adjusted EBITDA jumped 55% YoY to $1.7 billion.

"We delivered yet another record quarter of profitable growth at a global scale, reflecting the strength of our platform, which now has over 25 million Uber One members," said CEO Dara Khosrowshahi.

For the fourth quarter, Uber expects gross bookings between $42.75 billion and $44.25 billion, representing 16% to 20% YoY growth on a constant currency basis. The company also forecasts adjusted EBITDA of $1.78 billion to $1.88 billion.

Despite the strong results and outlook, Uber's stock declined in early trading, suggesting investors may have been looking for even more robust growth or guidance.

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