Uber stock rises after quarterly earnings report announces 72% revenue growth
Uber Eats revenue increased by 24% during the third quarter
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Despite rising interest rates, inflation and a looming recession, Uber's quarterly earnings reported revenue growth that helped boost the company's shares by nearly 13% at the opening bell.
Uber reported total earnings for the third quarter of $8.3 billion, a 72% increase compared to the poor year of $3.8 billion. Moreover, the ride-sharing app saw the number of trips grow by 19% to 1.95 billion, totaling 21 million trips per day by the end of September.
The food delivery service, Uber Eats, also had a strong third-quarter performance with a revenue increase of 24% totaling to $2.8 billion.
"Our global scale and unique platform advantages are working together to drive more profitable growth, with gross bookings growth of 32% and record adjusted EBITDA of $516 million," said Dara Khosrowshahi, the company's CEO. "Even as the macroeconomic environment remains uncertain, Uber’s core business is stronger than ever."
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Uber CEO Dara Khosrowshahi praised the company's growth following the release of its third quarter earnings report. (Reuters/Anushree Fadnavis / Reuters)
However, the company did have a net loss of $1.2 billion for the quarter and did not meet expectations in other categories. Gross bookings totaled $29.11 billion instead of the expected $29.63 billion.
Mobility and delivery bookings, when combined, added up to $27.36 billion, which was slightly below Uber's expectations of $27.72 billion. Loss per share also stood at $-0.61 versus the estimated loss of $-0.17.
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"Strong demand for our offerings, better marketplace efficiency, and our asset-light platform helped to deliver adjusted EBITDA well above our guidance, even as foreign exchange and inflationary headwinds impact all global businesses," said Uber's CFO Nelson Chai in a statement.
"We remain focused on excellent execution and disciplined cost management to deliver on our growth and profitability commitments for the coming years," Chai added.