Uber Q3 2021 Earnings Report Recap

^{Source: Predictions based on analysts' consensus from Visible Alpha}

Uber (UBER) Financial Results: Analysis

Uber Technologies, Inc. (UBER) reported mixed Q3 FY 2021 earnings results. The company's loss per share was much larger than analysts expected and more than double the loss per share in the year-ago quarter. Uber's net loss for the quarter included a one-time, net pre-tax charge of $2.0 billion from the revaluation of its equity investments. Revenue for the quarter surpassed analyst estimates, rising 72.2%% year over year (YOY). Rides gross bookings, or gross bookings for Uber's Mobility segment, came in below consensus estimates. The company's shares fell as much as 6% in after-market trading. Over the past year, Uber's shares have provided a total return of 10.4%, below the S&P 500's total return of 35.9%.

UBER Rides Gross Bookings

Uber's gross bookings for its ride-hailing business, or Mobility segment, rose 67.4% compared to the year-ago quarter. Uber's rides business connects consumers with drivers, who provide rides in a range of different types of vehicles, including cars, motorbikes, and minibuses. Gross bookings are a key metric defined as the total dollar value, including applicable taxes, tolls, and fees, generated by Uber's various businesses. Rides gross bookings represent the portion of total gross bookings that are generated by the ride-sharing segment of the company's operations, as opposed to its delivery and freight shipping segments.

The rise in gross bookings for Uber's ride-hailing business marked the second straight quarter of growth after five consecutive quarters of declines resulting from the impacts of the pandemic. Uber's food delivery business, however, has grown significantly over the same period as people sheltering at home ordered more food for delivery rather than dining out at restaurants. While the delivery business generated approximately $3 billion more in gross bookings than the rides business, growth in rides gross bookings outpaced that of delivery in the third quarter. Total gross bookings reached an all-time high of $23.1 billion, up 56.8% compared to the year-ago quarter.

The rides business was the only one of Uber's three core businesses that was profitable in Q3 FY 2021. It generated $544 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The delivery business posted negative adjusted EBITDA of $12 million, while the freight business reported a negative adjusted EBITDA of $35 million. Companywide, Uber's third quarter was the first quarter as a public company that it reported an adjusted EBITDA profit.

Uber Outlook

Uber said that it expects companywide gross bookings in Q4 FY 2021 to be between $25 billion and $26 billion. It expects adjusted EBITDA to be between $25 million and $75 million.

Uber's next earnings report (for Q4 FY 2021) is estimated to be released on Feb. 8, 2022.