Uber Q3 Earnings: 31 Million Daily Trips, $1Billion Op Income, CEO Not Looking For Big M&A Deals, CFO Expects To Grow Organically

Uber Technologies, Inc UBER reported fiscal third-quarter 2024 revenue growth of 20% year-on-year to $11.188 billion, beating the analyst consensus of $10.97 billion.

Uber reported GAAP EPS of 46 cents and adjusted EPS of 46 cents, which beat the analyst consensus of 41 cents. The stock plunged after the report.

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Revenue from Mobility grew to $6.41 billion, up 26% year over year. Delivery was $3.47 billion, up 18%, and Freight was $1.31 billion, up by 2% year over year.

Gross Bookings grew 16% year-over-year to $40.97 billion. Mobility Gross Bookings of $21.00 billion, up 17% year-over-year; Delivery Gross Bookings of $18.66 billion, up 16%; and Freight Gross Bookings of $1.31 billion, up 2% year-over-year.

Trips grew 17% year-over-year to 2.9 billion, or 31 million per day. Uber's Monthly Active Platform Consumers reached 161 million, up 13% year-over-year.

Margins: Uber clocked an Adjusted EBITDA of $1.69 billion, up 55% Y/Y, driven by Mobility. The Adjusted EBITDA margin as a percentage of Gross Bookings was 4.1%, up from 3.1% Y/Y, primarily driven by better cost leverage from higher volume.

Uber held $9.06 billion in unrestricted cash and equivalents and generated $2.1 billion in free cash flow as of September 30, 2024.

Dara Khosrowshahi, CEO. "We continue to build with an eye towards the future, optimizing our products for new customer segments and geographies, introducing Rider Verification nationwide to increase safety for drivers, and launching shuttles to airports and venues. And of course, we continue to advance our autonomous strategy, demonstrating how Uber can help unlock this exciting technology for the world."

Outlook: Uber expects fourth-quarter gross bookings of $42.75 billion—$44.25 billion vs. the consensus of $43.7 billion and adjusted EBITDA of $1.78 billion—$1.88 billion vs. the consensus of $1.84 billion.

Uber CEO Dara Khosrowshahi told CNBC, "We are not looking at this point to do big deals, transformational deals, one way or the other."

CFO Prashanth Mahendra-Rajah said, "We remain committed to returning capital to shareholders through repurchases while strategically investing in organic growth vectors that will position us to capture the significant opportunities ahead."

Price Action: UBER stock is down 7.09% at $73.87 premarket at the last check on Thursday.

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Photo courtesy: Wikimedia Commons