After the ride-hailing and delivery service announced revenue for the most recent quarter, which increased by more than 70% from the prior year and beyond Wall Street’s expectations, Uber stock (NYSE:UBER) increased by around 15% in early trading on Tuesday. The improvement coincided with trips and customer growth that was double-digit.
The business reported Q3 revenue of $8.34 billion, a 72% increase over the same period last year. The total also exceeded analyst predictions by $220 million. According to UBER, gross bookings increased 26% from the previous year. The bookings total increased by 32% when currency exchange effects were taken into account.
The company recorded a net loss of $1.2 billion, which was half what it was the previous year and included a number of non-operational expenses. In addition, the company’s GAAP loss of $0.61 per share fell short of analysts’ estimates by $0.43 per share.
Uber stock forecast, earnings
Still, $512 million of what the company called a “net headwind” was added to the bottom line. This was mostly because UBER had net unrealized losses on its stock investments after reevaluating them. A $482 million charge for stock-based compensation was also included in the negative net income for the quarter. The corporation demonstrated a notable improvement from 2021 to 2022 in terms of EBITDA. Compared to just $8 million during the same period last year, UBER’s adjusted EBITDA for the third quarter was $516 million.
An increase in monthly active platform consumers helped UBER’s performance. The number was 124 million during the third quarter, up 2% from the prior quarter and 14% from the previous year. Trips on the Uber platform increased by 4% from Q2 and 19% from the previous year.
The company thought that Q4 gross bookings would be 23% to 27% higher than the same time last year, assuming that the exchange rate didn’t change. UBER anticipates a seven percentage point currency headwind. The company also expects adjusted EBITDA to increase in Q4 to a range between $600 million and $630 million.
Even though the market liked Uber’s most recent earnings report, there were skeptics before the report came out. See why Seeking Alpha contributor Geoff Considine thinks the company’s forecast has been overstated by analysts. In related news, Uber Stock Fell Despite A Forecast From Wedbush That The Company’s September Results “Should Be A Positive Step Forward”
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Author Jowi Kwasu 
