Key facts
- Uber forecast fourth-quarter adjusted profit of 95 cents to 99 cents per share, below the $1.06 per share LSEG estimate.
- Uber said the Middle East conflict was a 75 basis point drag on Mobility bookings growth and assumes a 100 basis point hit in the fourth quarter.
- CEO Dara Khosrowshahi said elevated fuel prices and tighter driver availability weighed on supply growth in several international markets.
- Uber expects fourth-quarter gross bookings of $63.25 billion to $65.25 billion, against analysts' estimates of $64.42 billion.
- Uber expects about 700 fully driverless vehicles on its platform by year-end and more than 2,000 by the end of 2027.
- Uber agreed to buy catering marketplace ezCater and expects minimal to no further M&A through at least 2027.
Uber forecast fourth-quarter adjusted profit of 95 cents to 99 cents per share on November 4, below the $1.06 per share estimate compiled by LSEG. The company pointed to driver shortages, higher fuel costs and the Middle East conflict as drags on ride-hailing growth across markets including India, Brazil and Canada.
Uber said the Middle East conflict was a 75 basis point drag on Mobility bookings growth and that it assumes a 100 basis point hit in the fourth quarter. CEO Dara Khosrowshahi said in prepared remarks: "Elevated fuel prices and tighter driver availability weighed on supply growth in several international markets." He added that tighter immigration flows affected Canada and that the market is "meaningfully undersupplied." Uber said mobility trends improved in October and that it is spending on driver acquisition, retention and reactivation.
For the fourth quarter, Uber expects gross bookings of $63.25 billion to $65.25 billion, against analysts' estimates of $64.42 billion, and adjusted core profit of $3.13 billion to $3.23 billion, against estimates of $3.19 billion. Third-quarter revenue of $14.77 billion grew 10%, the slowest since the first quarter of 2021, but topped estimates of $14.69 billion. Delivery bookings grew 22% and Freight 35%.
Uber said it expects about 700 fully driverless vehicles on its platform by year-end and more than 2,000 by the end of 2027, and that it plans to focus capital on a smaller group of autonomous-vehicle partners. It also agreed to buy catering marketplace ezCater and, apart from autonomous-vehicle investment, expects "minimal to no further M&A through at least 2027."