Uber Technologies, Inc. (NYSE: UBER) announced stronger third-quarter results and provided an optimistic outlook for the fourth quarter, forecasting higher adjusted EBITDA and gross bookings.
In pre-market trading on the NYSE, Uber shares dropped approximately 6.4% to $74.38.
**Fourth Quarter Outlook**
Uber anticipates adjusted EBITDA to range from $1.78 billion to $1.88 billion, indicating a growth of 39% to 47% compared to the previous year. The projected gross bookings for the fourth quarter are expected to be between $42.75 billion and $44.25 billion, reflecting a 16% to 20% increase year-over-year on a constant currency basis.
Additionally, Uber reaffirms its commitment to achieving 20% gross bookings growth on a constant currency basis for fiscal year 2024.
**Third Quarter Results**
The company reported an increase in third-quarter earnings, surpassing analysts' expectations. Earnings stood at $2.612 billion, or $1.20 per share, compared to $221 million, or $0.10 per share, in the previous year. This result includes a $1.7 billion pre-tax benefit from net unrealized gains due to the revaluation of Uber's equity investments.
Analysts had predicted the company would earn $0.41 per share, as per data compiled by Thomson Reuters. These figures generally exclude extraordinary items.
Revenue for the quarter increased by 20.4% to $11.188 billion from last year’s $9.292 billion, exceeding analysts' expectations of $10.98 billion. Gross bookings rose 16% year-over-year to $41.0 billion, or 20% on a constant currency basis.
