Uber Beats Q3 Earnings Estimates, Gross Bookings Growth Slows

Strong Demand Helps Uber Beat Estimates, Revenue Up 72%

Uber Technologies Inc. reported third-quarter earnings on Monday that topped analysts' estimates, as strong demand for its ride-hailing and food delivery services helped offset a slowdown in gross bookings growth.

The company reported adjusted earnings per share of $0.56, beating the consensus estimate of $0.43 per share. Revenue for the quarter came in at $8.34 billion, up 72% year-over-year and above the $8.13 billion analysts had expected.

Gross Bookings Growth Slows, Still Outpacing Pre-Pandemic Levels

Uber's gross bookings, which represent the total value of transactions processed through its platform, grew 28% year-over-year to $30.7 billion. This marked a deceleration from the 33% growth rate in the previous quarter and the 50% growth rate in the first quarter of 2022.

Despite the slowdown, gross bookings growth still outpaced pre-pandemic levels. In Q3 2019, gross bookings grew by just 14% year-over-year.

Mobility Remains Strong, Delivery Growth Moderates

Uber's ride-hailing business, known as Mobility, continued to perform well in Q3. Gross bookings in the Mobility segment grew by 32% year-over-year, driven by strong demand from both consumers and businesses.

The company's food delivery business, known as Delivery, saw more moderate growth. Gross bookings in the Delivery segment grew by 24% year-over-year, down from 35% growth in the previous quarter.

Uber Freight and Other Bets Continue to Expand

Uber's other businesses, including Uber Freight, Uber Health, and Uber Explore, continued to expand in Q3. Gross bookings in the Other Bets segment grew by 18% year-over-year to $1.3 billion.

Uber Freight, which provides a platform for shippers and carriers to connect, saw gross bookings grow by 27% year-over-year. Uber Health, which provides non-emergency medical transportation, saw gross bookings grow by 19% year-over-year.

Outlook: Uber Confident in Continued Growth

Uber's management expressed confidence in the company's continued growth during the earnings call on Monday. The company said it expects gross bookings to grow by 20-25% in the fourth quarter of 2022.

Uber also said it is focused on improving profitability and achieving positive free cash flow in the future. The company said it expects to achieve profitability on an adjusted EBITDA basis in 2024.

Conclusion: Uber Continues to Execute, Growth Remains Strong

Uber's third-quarter earnings report was a solid beat on both the top and bottom lines. The company's strong demand helped it offset a slowdown in gross bookings growth, and its other businesses continued to expand.

Uber remains confident in its continued growth, and the company's outlook for the fourth quarter of 2022 is positive. Uber is well-positioned to continue to execute its strategy and achieve its long-term goals.