Uber (UBER) Q3 Results: Uber share price rally on strong quarterly revenue

Uber share price rose 13% after it reported strong third-quarter revenue and guidance above street estimates. However, In 2022, Uber stock have fallen more than 32%.

Let us look at its Uber Q3 2022 performance in detail.

Below are details from Uber's September quarter results:

Uber Q3 Revenue: The company reported a revenue of $8.34 billion, above street estimates of $8.12 billion. The revenue increased 72% YoY. The growth was 81% on a constant currency basis. The revenue growth outpaced Gross Booking growth due to the acquisition of Transplace by Uber Freight.

Uber Q3 loss 2022: Uber reported a net loss of $1.2 billion for the September quarter. Of the total losses, $512 million was attributed to the revaluation of the company's equity investments. The loss per share was 61 cents compared to the 22 cents loss anticipated by the analysts.

Uber Q3 2022 Operating margin: Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $516 million, beating guidance of $440 million to $470 million. That’s up to $508 million from the same quarter a year ago. Adjusted EBITDA margin as a percentage of Gross Bookings was 1.8%, up from 0% in Q3 2021. 

Uber quarterly results Cash position: Net cash provided by operating activities was $432 million, and free cash flow, defined as net cash flows from operating activities with fewer capital expenditures, was $358 million. At the end of the third quarter, unrestricted cash and cash equivalents were $4.9 billion. 

Uber Q3 2022 Bookings: Gross bookings for the quarter came in at $29.1 billion, up 26% year over year.The number of monthly active platform consumers jumped to 124 million in the September quarter, up 14% year over year. There were 1.95 billion trips completed on the Uber app during the period, up 19% YoY.

Uber Q3 earnings Guidance: The company has said it expects gross bookings to grow between 23% and 27% year over year on a constant currency basis. Also, it expects an adjusted EBITDA of $600 million to $630 million. Analysts had expected $568 million in adjusted EBITDA for the fourth quarter.

Uber quarterly results analysts view: Wedbush has maintained its ‘Outperform’ rating with a share price target of $38 post strong quarterly numbers. Strong operating margins and future guidance point out Uber’s ability to effectively manage growth while maintaining its profit margins, Wedbush said. As per Wedbush, gross bookings and operating margins are expected to grow further on rebound in travel, employees returning to offices and no driver shortages.