June 29, 2022

U.S ride hailing company, Uber Technologies Inc recorded its first profitable quarter on an adjusted basis. The company’s two most important segments, ride-hailing and restaurant delivery, both recorded good earnings.

According to the company, it reported adjusted earnings of $8 million for the quarter ended Sept. 30, from a compared loss on the same basis of $625 million a year ago.

According to Refinitiv data, Uber’s forecast for the last quarter of 2021 was an adjusted profit of $25 million to $75 million. While analysts on average had expected $114 million.

Uber’s earnings report despite the adjusted profit came as rather dissatisfactory after a smaller U.S. rival Lyft Inc. had reported its second consecutive quarterly adjusted profit at $67.3 million on Tuesday. The company mentioned to be expecting an adjusted EBITDA of between $70 million and $75 million in the fourth quarter.

According to market analysts, a drop in value of Uber’s holding in Chinese ride service Didi and stock-based compensation payments led to a net loss that more than doubled from last year.

The Chinese company, Didi launched its IPO in June, onlooking its market capitalization to fall by billions of dollars after the country’s market regulator had launched an anti-trust probe.

According to IBES data from Refinitiv, in Uber’s real-world business, its total revenue increased 72% to $4.8 billion, above an average analyst estimate of $4.4 billion.

During the pandemic, the company’s delivery business, which includes restaurant food and store deliveries, helped it to maintain its business. It delivery revenue recorded a steady increase in the third quarter. This business makes up some 96% of delivery gross bookings.

Uber business findings –

The company’s consumers in the third quarter were traveling in greater numbers and since January its driver and courier base had grown by nearly 640,000 people. After the pandemic, it spent more than $250 million to lure drivers back.

The company’s ride bookings in the same quarter remained more than 20%.

The demand from riders traveling for parties and fun were about 80% of pre-pandemic levels. The U.S. airport trips, increased in recent weeks, however, lagged all other ride categories, remaining around 33% below pre-pandemic levels.