Uber Reports First Ever Adjusted EBITDA Profit in Q3

Ride hailing giant Uber reported its financial results this week for the third quarter that included the company’s first ever adjusted EBITDA profit.

The company reported a net loss of $2.4 billion for the quarter however, which was largely attributed to a drop in the value of its investment holdings, particularly in Didi. Uber said its stakes in Zomato, Aurora and Joby helped offset some of that loss. Uber posted a net loss of $1.09 billion in the same quarter a year ago.

For the third quarter Uber reported a loss per share of $1.28 compared to 33 cents expected per Refinitiv. Revenue at $4.8 billion was ahead of the $4.4 billion that was expected.

Active U.S. mobility drivers were up nearly 60% yea -over year in the third quarter.

Uber also reported its first adjusted EBITDA profit, meeting its end-of-year target. The company posted an adjusted EBITDA profit of $8 million, up from an adjusted EBITDA loss of $507 million in the second quarter.

The company’s business segments for Q3 saw mobility (gross bookings) at $9.9 billion, up 67% year over year while delivery (gross bookings) came in at $12.8 billion, up 50% year over year.

Delivery revenue outperformed the company’s core ride-hailing business at $2.24 billion, compared with $2.2 billion, though that gap is narrowing. Freight revenue brought in $402 million. In an update to shareholders, the company said that its number of delivery merchants grew to more than 780,000.

Uber CEO Dara Khosrowshahi said on the company’s earnings call that incidents of surge pricing have fallen by nearly half, while wait times are on average less than five minutes.

“We’re comfortable that the bulk of our recruitment spending is behind us,” he said.

Uber also revealed that trips to and from airports grew 35% quarter over quarter and 203% year over year.

Uber reported 1.64 billion trips on the platform during the quarter, up 9% from the past quarter and 39% year over year. Monthly active platform consumers reached 109 million, up 8% from the prior quarter. Drivers and couriers earned an aggregate $8.6 billion during the quarter.

Looking ahead, Uber expects gross bookings between $25 billion and $26 billion in the fourth quarter. It also expects adjusted EBITDA of $25 million to $75 million.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.