Uber Technologies Inc (UBER, Financial) announced its financial results for the third quarter ended September 30, 2023, on November 7, 2023. The company reported substantial year-over-year growth in several key areas, including a 25% increase in trips and a 15% rise in monthly active platform consumers. Gross Bookings grew by 21% to $35.3 billion, with Mobility Gross Bookings up by 31% and Delivery Gross Bookings increasing by 18%. This growth in Gross Bookings was consistent on a constant currency basis, indicating underlying strength in Uber's core business segments.
Financial Performance Overview
Uber's revenue for the quarter grew by 11% year-over-year to $9.3 billion, with combined Mobility and Delivery revenue up by 21%. The company's income from operations turned around from a loss in the previous year to a profit of $394 million. Net income attributable to Uber was reported at $221 million, despite a $96 million headwind primarily due to net unrealized losses related to the revaluation of Uber’s equity investments.
Adjusted EBITDA for the quarter was $1.1 billion, a significant increase from the previous year, with the Adjusted EBITDA margin reaching an all-time high of 3.1% of Gross Bookings. The company's free cash flow was robust at $905 million, even after accounting for a $622 million cash outflow related to the payment of an HMRC VAT assessment. Uber ended the quarter with $5.2 billion in unrestricted cash, cash equivalents, and short-term investments.
Operational Highlights and Strategic Developments
Uber's CEO, Dara Khosrowshahi, highlighted the company's focus on improving the product experience for consumers and drivers, which has continued to drive profitable growth. CFO Nelson Chai emphasized the durability of Uber's growth and the significant earnings power underlying the platform. The company is making disciplined investments in growth opportunities to support long-term value creation for stakeholders.
Uber's platform saw significant operational highlights, including the expansion of Uber One, the launch of autonomous mobility partnerships, and the introduction of new features such as Group Rides and AI-powered conversational shopping experiences. The company also made strides in advertising, membership, and partnerships, further solidifying its position in the market.
Outlook for Q4 2023
Looking ahead to the fourth quarter of 2023, Uber anticipates Gross Bookings to be between $36.5 billion and $37.5 billion and Adjusted EBITDA to range from $1.18 billion to $1.24 billion.
Uber's strong performance in the third quarter of 2023 reflects the company's ability to leverage its platform to drive growth and profitability. With a focus on innovation and strategic partnerships, Uber is well-positioned to maintain its momentum heading into the busiest period of the year.
For a detailed analysis of Uber Technologies Inc (UBER, Financial)'s third-quarter financial results, including income statements, balance sheets, and cash flow statements, please visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Uber Technologies Inc for further details.
