Uber Reports Q3 Earnings: Mixed Results Amid Accounting Changes and Strong Bookings Growth

Uber Technologies Inc. has released its third-quarter earnings report, delivering a mix of results that included lower-than-expected revenue and earnings per share, but an optimistic growth in gross bookings and profits from its core business segments. While the results fell short on some fronts, the company demonstrated strength and resilience in key performance areas, positioning itself confidently amidst the uncertainties of the global economy.

Financial Performance Highlights

Uber’s financial report provided insights into the company’s performance:

  • Earnings per Share: Reported at 10 cents, missing the 12 cents expectation by LSEG.
  • Revenue: Posted $9.29 billion against a forecasted $9.52 billion by LSEG.
  • Net Income: Marked at $221 million, a substantial recovery from a net loss of $1.2 billion in the previous year’s quarter.
  • Adjusted EBITDA: Reached $1.09 billion, surpassing analysts’ expectations of $1.02 billion.
  • Gross Bookings: Grew by 21% to $35.3 billion, outpacing the company’s projections.

Despite the modest earnings per share and revenue figures, the increase in gross bookings indicates a healthy demand for Uber’s services. The company’s CEO, Dara Khosrowshahi, highlighted the quarter’s success and future outlook, emphasizing the firm’s ability to thrive in various macroeconomic conditions.

Operational and Segment Analysis

Uber’s operational success was evidenced in several areas during the third quarter:

  • Mobility Segment: Achieved $17.90 billion in gross bookings, with a year-over-year increase of 31%.
  • Delivery Segment: Gross bookings reached $16.09 billion, up 18% from the previous year.
  • Freight Business: Recorded $1.28 billion in sales, despite a 27% decline from the last year.
  • Active Platform Consumers: Increased by 15% year-over-year, reaching 142 million.
  • Completed Trips: Surged by 25% to 2.44 billion trips across the platform.

The segment growth, particularly in mobility and delivery, reflects Uber’s robust operational capacity and adaptability to changing market demands. The CEO reaffirmed this by noting advancements in gross bookings, trip numbers, and consumer engagement on the platform.

Market Performance and Analysts’ Perspective

Uber’s stock exhibited resilience on the trading floor, closing up over 3% on Tuesday following the earnings announcement. Despite initial premarket dips, Uber shares have demonstrated a significant rally, surging more than 90% in the year to date.

The company’s stock’s relative strength hit a new high, indicating its strong performance against the market. Analysts maintained a positive stance on Uber, with CFRA Research analyst Angelo Zino upholding a buy rating and a target price, citing encouraging profitability trends, particularly in delivery margins.

Accounting Changes and Uber’s Strategic Adjustments

One of the focal points in Uber’s third-quarter report was the impact of accounting changes on revenue reporting. The reclassification of certain incentive spends for Uber Eats led to a lower reported revenue of $521 million for the quarter. However, Nelson Chai, Uber’s CFO, clarified that these were mere shifts in categorization with no real impact on operating income.

In detailing the accounting adjustments, Khosrowshahi noted that if not for the reclassification, revenue growth would have been 8% higher, demonstrating underlying business strength.

Uber’s Future Outlook

Looking forward to the fourth quarter of 2023, Uber provided positive guidance, expecting gross bookings to be between $36.5 billion and $37.5 billion, in line with estimates, and projecting an adjusted EBITDA of $1.18 billion to $1.24 billion. This outlook showcases Uber’s confidence in its business model and strategic positioning for continued profitability.

Global Operations and Market Reach

On the international front, the CEO indicated that Uber does not conduct business in Israel or Gaza and, therefore, remains unaffected by the conflict in those regions. Instead, the company’s global operations see the Middle East accounting for approximately 2% of Uber’s gross bookings, illustrating a diversified geographical presence.


Uber’s third-quarter report reflects a company navigating the economic challenges with strategic foresight and operational efficiency. While the revenue and earnings per share did not meet analysts’ expectations, the company’s strong gross bookings and net income signify its enduring appeal and growth potential. With the end of the year approaching, Uber stands prepared to capitalize on peak season demands and continue its trajectory toward expanded market leadership.

For more detailed financial data and market performance, interested individuals can refer to Uber’s investor relations website here.


More Posts

Send Us A Message