Uber Technologies Inc. (NYSE:UBER) shares tumbled over 8% on Tuesday, as investors focused on the company’s softer earnings guidance for the fourth quarter, which outweighed its strong third-quarter results that topped analyst forecasts.
For the third quarter, Uber reported earnings per share of $1.20, beating consensus estimates of $0.69 by a wide margin. Revenue climbed 19% year-over-year to $13.47 billion on a constant-currency basis, also exceeding expectations of $13.26 billion.
Gross bookings rose 21% YoY to $49.7 billion, reflecting continued strength across both Mobility and Delivery operations. Adjusted EBITDA increased 33% from a year earlier to $2.3 billion, representing a 4.5% margin of gross bookings, up from 4.1% in Q3 2024.
Wolfe Research analyst Shweta Khajuria noted that bookings were “low single digits (LSD%) above the Street (at both Mobility and Delivery) as trips growth accelerated across all geos coming in at 22% (vs. 18% prior 3Qs), strongest since the end of 2023.”
“EBITDA was slightly below Street expectations but above the company’s mid-point of guide,” she added.
During the quarter, Uber reported 3.5 billion trips, up 22% year-over-year, supported by 17% growth in monthly active platform consumers (MAPC) and a 4% increase in trips per user.
“Uber’s growth kicked into high gear in Q3, marking one of the largest trip-volume increases in the company’s history,” said Dara Khosrowshahi, CEO of Uber. “We’re building on that momentum by investing in lifelong customer relationships, leaning into our local commerce strategy, and harnessing the transformative potential of AI and autonomy.”
Looking ahead, Uber guided gross bookings for Q4 between $52.25 billion and $53.75 billion, roughly in line with the consensus estimate of $52.33 billion. However, its adjusted EBITDA guidance of $2.41 billion to $2.51 billion and margin forecast of 4.55% to 4.74% came in slightly below investor expectations, contributing to the post-earnings selloff.