Uber reports 18% revenue decline but says ride-hailing business is picking back up

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Uber shares dropped as much as 4% after-hours Thursday as the company reported third quarter revenue that missed Wall Street’s expectations, but picked up during the company’s earnings call when the CEO said there are early signs its core ride-hailing business would fully recover from the Covid 19 pandemic.

Here’s how the company performed versus what Wall Street analysts were expecting for the period ending September 30, 2020:

Losses: 62 cents per share vs. 65 cents per share expected, according to a consensus of analysts surveyed by Refinitiv.
Revenue: $3.13 billion vs. $3.20 billion expected per Refinitiv.
Overall, Uber lost $1.09 billion on a GAAP basis during the quarter, an improvement from a year ago when their losses amounted to $1.16 billion.

Here’s how its largest business segments performed:

Mobility adjusted net revenue, including Uber’s core Rides business, declined 52% year-over-year to $1.37 billion for the third quarter, while Delivery adjusted net revenue, including from Uber Eats, grew 190% year-over-year to $1.14 billion. Adjusted net revenue is a non-GAAP measurement that measures revenue minus driver incentives, driver referral payments, and the cost of reimbursing drivers for Covid 19 protection equipment.

The company reiterated guidance that Uber expects to be profitable on an EBITDA basis by the end of 2021. On a conference call to discuss results, CEO Dara Khosrowshahi said while the last 8 months had been tough, there were early signs that the company’s core mobility business would fully recover. He said Uber had improved its position in 11 of the top 15 markets in the United States during the third quarter including New York City, Chicago and Atlanta.

https://www.cnbc.com/2020/11/05/uber-earnings-q3-2020.html