Uber Technologies Inc’s (NYSE: UBER) third-quarter financial results came in a bit shaky at first look, but showed strength in bookings. Following the print, Uber CEO Dara Khosrowshahi provided insights on the quarter.
Uber CEO Breaks Down Q3 Earnings: Uber reported third-quarter revenue of $9.29 billion Tuesday, which beat the consensus estimate of $8.99 billion, according to Zenger News Pro. The company’s top-line results were up 11% year-over-year.
Tuesday on CNBC’s “Squawk Box,” Khosrowshahi said Uber’s revenue numbers would have been up an additional 8% if it weren’t for a reclassification of Uber Eats spending.
“We reclassified certain incentive spends for Uber Eats. These are promotions and price cuts that used to be classified as marketing expenses. We reclassified those as contra revenue,” the Uber CEO said.
Other metrics from the quarter show “the business is in great shape,” he added.
Gross bookings were a bright spot for the mobility company, growing 21% on a year-over-year basis. Mobility bookings were up 31% and delivery bookings were up 18%. Trips were up 25% and platform consumers climbed 15% in the third quarter.
Uber reported earnings of 10 cents per share, which missed analyst estimates of 11 cents per share, but was improved from a loss of 61 cents per share in the prior year’s quarter.
Uber is growing faster than the broader economy and outpacing competitors because its diverse platform gives the company a competitive advantage, the CEO said.
“Uber’s core business is stronger than ever as we enter the busiest period of the year,” Khosrowshahi said.
Goldman Sachs Sees Positive Trends At Uber: In a new note to clients on Tuesday, Goldman Sachs analyst Eric Sheridan noted that positive operating trends have continued into the fourth quarter.
The analyst predicted the combination of better bookings in Uber’s core operation and further progress on profitability would push investors to react favorably to the report. Uber shares were up 2.52% at $49.40 at last check.
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