After the closing bell of regular market on Monday, Uber Technologies, Inc. (UBER, Financial), which went public on May 10 earlier this year, issued its third earnings report as a public company. Â
Following the release of third-quarter results, shares of the San Francisco-based multinational ride-sharing company fell $1.71 (5.5%) to $29.37 in extended trading.
Uber posted a GAAP loss of $1.16 billion, or 68 cents per share, on $3.53 billion in adjusted net revenue. The loss includes an expense for stock-based compensation of $401 million. The improvement in the bottom line from a year-ago loss of $2.21 per share led to Uber topping consensus estimates on third-quarter earnings by 16 cents. However, a 32.7% year over year growth in revenue was not enough to beat projections; the company missed forecasters by $150 million.
By segment, Uber reported the following year over year changes in constant currency: Rides was $2.87 billion in adjusted net revenue, up 24%; Eats revenue was $392 million, up 109%; and Freight revenue was $218 million, up 78%. Additonally, Other Bets achieved $38 million in adjusted net revenue, up from $3 million in the year-ago third quarter.
The Rides products put consumers in connection with drivers who provide the rides service using several types of vehicles.
The Eats offering gives consumers the possibility to order meals at the touch of a button from local restaurants. Consumers can then choose either to have the meal delivered at their domicile or to pick it up at the restaurant.
Freight puts shippers in connection with carriers who have access to reliable information on pricing. Also, on Uber’s platform, carriers can easily book shipments using the appropriate service.
The Other Bets segment offers rides in several types of modes such as by e-scooters and dockless e-bikes.
The ATG and Other Technology Programs segment engages in the development and the launch on the market of autonomous vehicles and ridesharing technologies. The segment includes the Uber Elevate team, which is working on aerial ridesharing at scale technologies.
“Our results this quarter decisively demonstrate the growing profitability of our Rides segment,” Chief Executive Officer Dara Khosrowshahi said. “Rides Adjusted EBITDA is up 52% year-over-year and now more than covers our corporate overhead. Revenue growth and take rates in our Eats business also accelerated nicely. We’re pleased to see the impact that continued category leadership, greater financial discipline, and an industry-wide shift towards healthier growth are already having on our financial performance.”
Moreover, Uber reported that gross bookings were $16.5 billion, a 32% increase (constant currency) from the same quarter of 2018.
By segment, Uber Eats gross bookings of $3.66 billion increased 77% and Ridesharing gross bookings of $12.55 billion increased 22%. Freight gross bookings of $223 million increased 81% and Other Bets gross bookings of $30 million in the third quarter of 2019 compares to $3 million in the third quarter of 2018.
The adjusted Earnings Before Interest, Taxes, Depreciation and Amortization was a loss of $585 million.
Additionally, the monthly number of active consumers on Uber’s platform went up 26% year over year to 103 million active consumers.
As of Sept. 30, 2019, Uber’s balance sheet had approximately $12.7 billion in cash on hand, equivalents, restricted cash and short-term investments compared to $6.88 billion at the end of the final quarter of 2018. Total long-term debt totaled $5.71 billion and equity was worth $15.74 billion.
Looking ahead to full-year 2019, Uber forecasts an adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization of negative $2.9 billion to negative $2.8 billion versus the previous guidance range of negative $3.2 billion to negative $3 billion.
Since the company went public, Uber’s share price has declined 25% to close at $31.1 on Monday, below the 100-, 60- and 20-day simple moving average lines. The stock has a market capitalization of $52.84 billion.
Analysts issued an overweight recommendation rating for shares of Uber with an average target price of $48.88.
Disclosure: I have no position in any securities mentioned.
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