$Uber(UBER)$ released its Q3 earnings yesterday, with a significant market fluctuation from a 3% drop in pre-market trading to a 3% increase at the close.
Since Q2, the market has favored Uber, with little to no significant pullback, and there was also some pre-report growth, reflecting the market's attitude towards the US economy.
Q3 Notables
Gross bookings and operating profit margins exceeded expectations, indicating strong demand and profit release.
However, the monetization rate of the food delivery business continues to decline, dragging down revenue and slightly lower than expected gross profit.
Monthly active users were 142 million, lower than the estimated 144 million, and the growth in new users is slowing down.
The number of Uber drivers on the platform is still growing, offsetting the downward trend in oil prices and average revenue per user.
The declining monetization rate of food delivery has dragged down the gross profit margin, but cost reductions have been made, with marketing expenses decreasing from 1.22 billion to 0.94 billion, and the company is still steadily promoting cost reduction and efficiency improvement.
The unexpected aspect is that Q4 revenue and profit guidance have increased instead of decreased. The company's guidance for total order amount in Q4 is between 36.5-37.5 billion, higher than the expected 36.3 billion. In terms of profit, the guidance for adjusted EBITDA is between 1.18-1.24 billion, also exceeding the expected 1.15 billion
The management team has great confidence in the macroeconomic soft landing and is also confident in the company's continued performance improvement.
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