While Uber slightly missed analyst expectations for its third-quarter 2023 financial results, the delivery, freight and rideshare provider posted growth in active users and gross bookings, boosting its share price from the low 40’s to approximately $50/share.
Overall, Uber reported net income of $221 million in Q3, a huge swing compared to a net loss of $1.2 billion in the same quarter last year. Mobility bookings grew 30 percent year over year, and delivery gross bookings of $16.1 billion were up 17 percent year-over-year.
While the results came in slightly below consensus analyst expectations, they do point to rising revenue from delivery and mobility, as well as gross bookings on new verticals (categories beyond meal delivery) that rose 46 percent year over year.
Combined mobility and delivery revenue increased 21 percent year over year to $8 billion, with monthly active customers rising 15 percent to 142 million consumers. In the company’s prepared remarks, it cited an expanded grocery selection, accepting SNAP recipients and accepting Managed Medicaid and Medicare Advantage Plans (including FSA and Flex cards) as boosting its new verticals categories. In total, 14 percent of delivery users are now ordering deliveries that aren’t prepared meals.
“Our relentless focus on improving the product experience for both consumers and drivers continued to power profitable growth, with trip growth accelerating to 25 percent,” said Uber CEO Dara Khosrowshahi. “Uber’s core business is stronger than ever as we enter the busiest period of the year.”
Over the past year, delivery margin expansion was largely driven by improved network efficiencies, advertising, and marketing and incentive optimization.
Uber’s CFO highlighted a handful of growth opportunities boosting long-term sales growth.
“Strong topline trends and record profitability demonstrate the durability of our growth and the significant earnings power underlying our platform,” said Nelson Chai, CFO. “We continue to make disciplined investments in growth opportunities to support long-term value creation for all stakeholders.”
“These results demonstrate that Uber continues to drive profitable growth at scale—and why we believe we’re well positioned for the journey ahead, in good or bad macro environments,” Khowrowshahi added in his prepared remarks. “Consumer demand on our platform remains healthy as we enter the busiest period of the year.”