Shares of ride-hailing giant Uber were up about 12 percent in pre-market trading after the company reported better-than-expected revenue alongside strong guidance for the fourth quarter. The company reported a loss per share of 61 cents compared to the 22 cents that analysts estimated, according to Refinitiv. Revenue for the third quarter came in at $8.34 billion, beating the $8.12 billion that analysts had expected, according to Refinitiv. The company reported a net loss of $1.2 billion for the third quarter. According to a statement issued, out of this amount, $512 million went to revaluations of Uber’s equity investment. Revenue was up 72 percent year over year. According to a statement by CEO Dara Khosrowshahi, the company had a strong quarter and benefitted from the boom in travel, reductions in lockdowns, and a shift in consumer spending. According to him, October is tracking to be the company’s “best month ever for both Mobility and total company Gross bookings.” He, however, added that after the last few years, the company has learned not to take anything for granted. “With continued rigor around costs, discipline on headcount, and a balanced capital allocation approach, all supported by our leading technical and operating capabilities, we are well positioned to deliver expanding profitability over the coming quarters,” he said. Uber reported a record adjusted EBITDA of $516 million, surpassing guidance of $440 million to $470 million, and analysts’ estimate of $457.7 million, according to StreetAccount. In the third quarter, gross bookings were up 26 percent year over year at $29.1 billion. The company expects fourth-quarter gross bookings to experience a growth of between 23 and 27 percent year over year on a constant currency basis. It also expects an adjusted EBITDA of between $600 million and $630 million. Analysts, on the other hand, expect an adjusted EBITDA of $568 million for the fourth quarter, according to Refinitiv. Uber reported gross bookings for its mobility segment of $13.7 billion, slightly below analysts’ estimate of $13.83 billion, according to StreetAccount. Gross bookings for delivery also fell short of analysts’ estimate of $14.01 billion, according to StreetAccount. The company reported gross bookings for its delivery business of $13.7 billion. The company’s freight business booked $1.75 billion in sales. Uber also reported an increase in active users to 124 million in the third quarter. The number of active users on the platforms is up 14 percent year over year. 1.95 billion trips were completed in the third quarter, up 19 percent year over year. Uber’s CEO also added that the company had recovered 80 percent pointing to the number of drivers that have returned to its platform.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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