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Uber beats on revenue even as mobility and delivery units miss estimates

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In short

Total top-line growth was sustained by a 34% jump in freight revenue, compensating for ride-hailing sales that fell 2% to $7.52 billion. Net income plummeted largely due to the absence of a one-time $4.9 billion tax benefit that significantly bolstered the prior year's results. Moving forward, the platform is investing heavily in supply incentives and targets deploying more than 2,000 automated vehicles by the end of 2027.

Key points

  • Mobility revenue slipped overseas due to challenges surrounding elevated fuel costs and t…: Mobility revenue slipped overseas due to challenges surrounding elevated fuel costs and tight driver availability.
  • Uber plans to deploy roughly 700 autonomous vehicles by year-end, including Zoox and Moti…: Uber plans to deploy roughly 700 autonomous vehicles by year-end, including Zoox and Motional robotaxis in Las Vegas.
  • Growth in the food delivery segment is receiving support from an expanded domestic partne…: Growth in the food delivery segment is receiving support from an expanded domestic partnership with retail giant Costco.

Sources checked by our analysis pipeline: 1

Uber reported revenue for the third quarter that topped analysts' estimates, but the company missed expectations in its two key businesses.

Here's how the company did versus analysts' estimates compiled by LSEG:

- Earnings per share: 25 cents vs. 96 cents expected

- Revenue: $14.77 billion vs. $14.69 billion expected

Revenue increased 10% from $13.47 billion a year earlier. The company reported net income of $512 million, down 92% from a year earlier, when the company had a $4.9 billion benefit from a tax valuation release.

Uber's core mobility unit, which is its ride-hailing service, saw a 2% decline in revenue to $7.52 billion, missing the average estimate of $7.71 billion, according to StreetAccount. Revenue in the food delivery business increased 23% to $5.49 billion, trailing the $5.51 billion average estimate.

Total bookings of $59.82 billion were about in line with the $59.83 billion average analyst estimate, according to StreetAccount.

Uber's revenue beat was due to growth in its freight division. Sales jumped 34% to $1.76 billion, topping the StreetAccount consensus of $1.49 billion,

Uber CEO Dara Khosrowshahi said, in…

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