Uber's Investment Losses Soar In 3rd Quarter

Uber on Thursday posted a big rebound in third-quarter revenue thanks to riders and drivers returning from pandemic lockdowns, but its bottom-line loss was wider than Wall Street expected, the Associated Press (AP) reported.

Photo Insert: Revenue in the quarter that ended Sept. 30 grew 72% year over year to $4.85 billion as gross bookings rose 57% to $23.1 billion.

The San Francisco-based ride-hailing company said its third-quarter loss widened to $2.42 billion, or $1.28 per share, from $1.1 billion, or 62 cents per share, in the year-earlier quarter.

The latest quarter included stock-based compensation costs as well as a hefty unrealized loss related to its investment in Didi. The Chinese ride-sharing company went public on the New York Stock Exchange in late June and days later faced a cybersecurity review from China’s internet watchdog.

Uber put the pretax impact of Didi’s decline at $3.2 billion, partially offset by unrealized gains in Zomato and other investments.

Revenue in the quarter that ended Sept. 30 grew 72% year over year to $4.85 billion as gross bookings rose 57% to $23.1 billion. The company noted that mobility gross bookings over Halloween weekend — after the quarter ended — surpassed 2019 levels. On average, analysts surveyed by FactSet forecast a loss of 33 cents per share on revenue of $4.42 billion.

Uber said its adjusted earnings before interest, taxes, depreciation, and amortization — or EBITDA — totaled $8 million during the quarter, turning positive for the first time in the company’s history. Its restaurant delivery segment also is close to breakeven.

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