Uber Bookings Climb 20% To $59.8 Billion As Adjusted Margin Hits A Record 3.9%
Net income fell 92% against a year-ago tax windfall, while adjusted profit and cash flow rose and a top executive is leaving.
Uber's third-quarter gross bookings grew 20% to $59.8 billion, and its adjusted operating income reached a record 3.9% of bookings, the company said Wednesday in an 8-K filing. Jill Hazelbaker, its President and Chief Corporate Affairs Officer, will step down on November 30 for an external opportunity.
Adjusted profit up, net income down 92%
Adjusted operating income rose 38% to $2.3 billion, up from 3.4% of bookings a year earlier. Adjusted earnings per share grew 35% to $0.88.
Net income attributable to Uber was $512 million, down 92% from $6.6 billion in the year-earlier quarter, which included a $4.9 billion tax benefit. This quarter's figure includes a $476 million pre-tax loss from revaluing equity investments. Diluted earnings per share were $0.25, against $3.11.
Revenue grew 10% to $14.8 billion; the company said business model changes cut revenue growth by 8 percentage points. Free cash flow rose 14% to $2.5 billion, after $104 million of spending on property and equipment, and unrestricted cash and short-term investments stood at $10.1 billion.
Delivery leads, Freight grows fastest
Uber, which runs a platform connecting riders, diners, shoppers and shippers with independent drivers, couriers, merchants and carriers, reported Delivery bookings up 22% to $28.5 billion and Mobility bookings up 18% to $29.5 billion. Freight bookings rose 35% to $1.8 billion. Trips grew 16% to 4.1 billion, with monthly active consumers up 14%.
Mobility revenue slipped 2% to $7.5 billion even as segment operating income rose 27% to $2.4 billion. Delivery segment operating income climbed 30% to $1.1 billion.
CEO Dara Khosrowshahi said the company expects about 700 fully driverless vehicles on Uber by year-end and over 2,000 in 2027.
Fourth-quarter outlook and a departure
For the fourth quarter, Uber forecast gross bookings of $63.25 billion to $65.25 billion, or 18% to 22% growth on a constant-currency basis. It expects adjusted earnings per share of $0.95 to $0.99.
Hazelbaker's exit takes effect November 30. Khosrowshahi called her "a deeply trusted advisor to me and many others." The company held its earnings call at 8:00 a.m. ET Wednesday.
Uber's fourth-quarter guidance puts adjusted earnings per share growth at 34% to 39%, the company said.
