Uber Technologies (UBER) shares surged higher Tuesday after the riding hailing group posted stronger-than-expected third quarter revenues and forecast firmer near-term profits a growth in its rides business offset a modest slowdown in food deliveries.
Uber said revenues for the three months ending in September rose 72% from last year to $8.34 billion, topping Street forecasts of an $8.12 billion tally, as gross bookings rose 26%, Uber said, with rides up 73% and food deliveries up 24%.
Uber's adjusted earnings for the quarter were $516 million, just ahead of the Street consensus of around $462 million, while its net loss narrowed 50% from last year to $1.21 billion.
Looking into the final months of the year, Uber said it sees adjusted earnings of between between $600 million and $630 million, well ahead of the Refinitv consensus of $569.4 million, with gross bookings rising between 23% and 27%.
“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 CEO Dara Khosrowshahi. “Even as the macroeconomic environment remains uncertain, Uber’s core business is stronger than ever.”
Uber shares were marked 13.25% higher in early Tuesday trading following the earnings release to change hands at $30.19 each, a move that would trim the stock's six-month decline to around 1%.
"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 CFO. “We remain focused on excellent execution and disciplined cost management to deliver on our growth and profitability commitments for the coming years.”
