Uber reported third-quarter revenue that beat analysts’ expectations, but its two main businesses fell short of expectations.
The company’s performance relative to analyst expectations compiled by LSEG is as follows.
Earnings per share: 25 cents vs. 96 cents expected Earnings: $14.77 billion vs. $14.69 billion expected
Revenue increased 10% from $13.47 billion in the same period last year. The company reported net income of $512 million, a 92% decrease compared to the same period last year, when the release of a tax assessment resulted in a $4.9 billion profit.
Revenue from Uber’s core mobility division (ride-hailing) fell 2% to $7.52 billion, below the average estimate of $7.71 billion, according to Street Accounts. Food delivery business revenue rose 23% to $5.49 billion, below the average estimate of $5.51 billion.
According to street accounts, total bookings were $59.82 billion, roughly in line with the average analyst estimate of $59.83 billion.
Uber’s sales growth was driven by growth in its freight division. Revenue rose 34% to $1.76 billion, beating the StreetAccount consensus of $1.49 billion.
Uber CEO Dara Khosrowshahi said in prepared remarks ahead of a scheduled conference call that the company’s core mobility division’s international performance was slightly below expectations.
“High fuel prices and tight driver availability have weighed on supply growth in several international markets,” he said, adding that Uber was making “targeted investments to strengthen driver supply.”
The company plans to have more than 2,000 autonomous vehicles available on its platform by the end of 2027, with half operating in the United States and half overseas. It added that around 700 will be available on the platform by the end of the year. Amazon’s Zoox and Motional robotaxis will be introduced to the Las Vegas platform this quarter.
Uber is also growing its delivery business through the acquisitions of Delivery Hero in Germany and ezCater in the US.
In the Uber Eats business, Khosrowshahi said the recently expanded partnership with U.S.-based Costco is “performing better than expected.” The company says Costco is now one of its top merchants in terms of total bookings.
For the fourth quarter, Uber expects overall bookings to be $64.5 billion at the midpoint of the forecast, consistent with StreetAccount’s average forecast of $64.26 billion.
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