Uber Tops Revenue Estimates at $14.8 Billion; Adjusted EPS Misses at $0.88

Uber Technologies (NYSE: UBER) reported third-quarter revenue of $14.8 billion, above the $14.67 billion analysts expected, and non-GAAP earnings of $0.88 per share, below the $0.90 consensus estimate, in an 8-K filed Wednesday, Nov. 4.

Revenue grew 10% from a year earlier, from $13.5 billion. Gross Bookings rose 20% to $59.8 billion, and trips grew 16% to 4.1 billion. Monthly Active Platform Consumers reached 215 million, up 14%. The company said business model changes reduced total revenue growth by 8 percentage points.

Segment results

Delivery revenue rose 23% to $5.5 billion, while Mobility revenue fell 2% to $7.5 billion. Freight revenue increased 34% to $1.8 billion. Mobility Gross Bookings grew 18% to $29.5 billion and Delivery Gross Bookings grew 22% to $28.5 billion.

GAAP diluted earnings per share were $0.25, compared with $3.11 a year earlier. The year-earlier figure included a $4.9 billion benefit from a tax valuation release. Third-quarter GAAP net income attributable to Uber was $512 million, which included a $476 million pre-tax loss from revaluations of equity investments.

Profitability and cash

Non-GAAP operating income rose 38% to $2.3 billion, or 3.9% of Gross Bookings, up from 3.4% a year earlier. Free cash flow was $2.5 billion, and unrestricted cash and short-term investments totaled $10.1 billion at quarter end. Uber repurchased $750 million of common stock during the quarter.

Chief Executive Dara Khosrowshahi said the company expects about 700 fully driverless vehicles on Uber by year-end and more than 2,000 in 2027.

Outlook and leadership

For the fourth quarter, Uber expects Gross Bookings of $63.25 billion to $65.25 billion, or growth of 18% to 22% on a constant-currency basis, and non-GAAP EPS of $0.95 to $0.99. The company said its outlook assumes a roughly 1 percentage-point currency headwind. The EPS range sits below the $1.00 average analyst estimate for the quarter ending Dec. 31.

In a separate filing item, the company said Jill Hazelbaker, President and Chief Corporate Affairs Officer, will step down on Nov. 30 for an external opportunity.

Uber shares closed at $66.60 on Tuesday, Nov. 3, giving the company a market value of about $136.03 billion before the filing.