The US ride-hailing and delivery service Uber presented its financial figures for the third quarter of 2024, significantly exceeding analysts' expectations for both earnings per share (EPS) and revenue. With an EPS of $1.24, Uber greatly surpassed the previous year's figure of $0.11 and exceeded the predicted $0.374.
Revenue increased by more than 20 percent compared to the same quarter last year to $11.188 billion, significantly exceeding the expected $10.99 billion. This increase is primarily due to book profits from own investments, which boosted profit from $221 million to $2.6 billion. This development underscores the company's successful investment strategy and its ability to tap into additional sources of income.
Despite strong quarterly figures, Uber expects lower business in the current quarter than market participants anticipated. Gross bookings for the final quarter are expected to be between 42.75 and 44.25 billion USD, which corresponds to a currency-adjusted growth of 16 to 20 percent. However, currency exchange effects are expected to reduce this increase by two percentage points, which clouds the forecast for the fourth quarter.
These more cautious outlooks disappointed investors, as experts had on average expected a slightly higher development. Dara Khosrowshahi, CEO of Uber, explained that the adjustments were necessary to adapt to the current market conditions. Despite the positive results in the third quarter, the after-hours price reaction on the NYSE reflects a disappointed confidence of the investors. Uber's stock temporarily fell by 10.10 percent to 71.41 US dollars, highlighting concerns about future business development.
The robust performance in the third quarter shows that Uber can strengthen its position despite a challenging operational environment and intense competition in the industry. The ability to increase both revenue and profit indicates a solid fundamental analysis, while the more cautious forecasts for the next quarter point to the ongoing challenges in the market environment.
