Uber quarterly results: net loss widened due to Didi investment
Uber (UBER) posted its first-ever adjusted profit, but its Q4 outlook weighed on shares immediately following the ride-sharing company's third quarter results.
Uber reported third quarter revenue of $4.85 billion versus Wall Street estimates of $4.4 billion. Gross bookings reaching an all-time high of $23.1 billion, up 57% year over year.
The company reported a loss per share of $1.28, much wider than what the street was expecting.
Uber's net loss widened to $2.4 billion in the third quarter, in part because of its investment in Didi (DIDI). The Chinese ride-hailing business's stock has tanked earlier this year amid regulatory crackdowns in China.
The company though reported its first adjusted EBITDA profit of $8 million for the quarter.
“While we recognize it’s just a step, reaching total-company Adjusted EBITDA profitability is an important milestone for Uber,” CFO Nelson Chai said in the earnings release.
The company's fourth quarter EBITDA outlook though came in below expectations. Uber expects an adjusted EBITDA of $25 million - $75 million versus Wall Street estimates of $98 million.
Broken down by segments, the company's delivery revenues were $2.24 billion, while ride hailing revenue was $2.2 billion.
Mobility Gross Bookings came in at $9.9 billion, a 67% increase from the same period last year.
Delivery gross bookings were $12.8 billion, a 50% year over year rise.
Over the summer, Uber's second-quarter results beat analysts' expectations on gross bookings, but the company saw steeper adjusted EBITDA losses than expected.
The company recently announced that Hertz Global (HTZZ) will make up to 50,000 Tesla (TSLA) electric vehicles available to Uber drivers in select markets who want to rent the cars by 2023. Hertz has already been working with Uber offering car rentals the past five years. The Tesla program will roll out nationally in the coming months.
Uber has also invested around $400 million in Aurora (AUR), an autonomous driving hardware and software company which went public on the Nasdaq (^IXIC) on Thursday via a merger with a blank check company.
Uber shares were up on Wednesday following competitor Lyft's (LYFT) better-than-expected quarter, with an adjusted profit of of $67.3 million.
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