Dara Khosrowshahi, CEO, Uber Technologies speaks during the third day of the FII PRIORITY Summit held at the Faena Hotel on February 21, 2025 in Miami Beach, Florida.
Joe Raedle | Getty Images
Uber (UBER) shares experienced a 5% dip in trading on Tuesday, a somewhat paradoxical reaction following the ride-hailing giant’s better-than-expected third-quarter revenue announcement. This movement underscores the complex interplay between investor expectations, immediate earnings reports, and long-term growth prospects in the tech sector.
“This was our strongest growth since the end of 2023 and the largest trip volume increase in Uber’s history outside the post-Covid rebound,” remarked CEO Dara Khosrowshahi, highlighting a period of robust operational execution.
The company’s revenue surged by an impressive 20% year-over-year, climbing from $11.2 billion. Gross bookings mirrored this upward trajectory, leaping 21% to reach $49.74 billion, exceeding the anticipated $48.95 billion.
Net income nearly tripled to $6.6 billion, translating to $3.11 per share, a substantial increase from the previous year’s $2.6 billion, or $1.20 per share. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 33% to approximately $2.26 billion, aligning closely with projections.
A notable component of Uber’s net income included a $4.9 billion benefit derived from a tax valuation release, alongside a $1.5 billion net pretax benefit resulting from equity investment reevaluations. These figures underscore how financial engineering and strategic investments have begun to contribute significantly to Uber’s bottom line, supplementing revenue from core operations.
Looking ahead to the fourth quarter, Uber anticipates gross bookings to fall within the range of $52.25 billion and $53.75 billion, surpassing the consensus forecast of $52.10 billion. The company projects adjusted EBITDA to be between $2.41 billion and $2.51 billion, slightly above the expected $2.47 billion.
Khosrowshahi attributed the company’s strong performance to its strategic focus on innovation and affordability, which drove increased trip volume and gross bookings throughout the period. This highlights Uber’s continued efforts to enhance user experience and offer competitive pricing strategies within its established and emerging markets.
Uber’s monthly active platform consumers experienced a 17% surge, reaching 189 million. The company reported a staggering 3.5 billion trips during the quarter, representing a 22% increase from the previous year. This signals both the broad-based appeal and the increasing reliance on Uber’s services globally.
“At this point we see blue skies,” Khosrowshahi stated. “Obviously, we are watching out in terms of the economies, the global economies, but at this point, the business continues to hit on all cylinders.”
Adding a forward-looking perspective, Khosrowshahi emphasized the company’s integration of artificial intelligence to develop enhanced solutions for drivers and couriers, collaborating with AI leaders like OpenAI. This strategic alignment with cutting-edge technologies positions Uber to capitalize on future efficiencies and innovations within the transportation and logistics industries. Khosrowshahi foresees Uber’s future growth being fueled by internal innovation and strategic acquisitions. The focus on AI isn’t just about cost savings; it’s about creating a smarter, more responsive logistics network capable of anticipating demand and optimizing resource allocation in real-time.
Here’s a performance breakdown of Uber’s key business segments:
- Mobility (gross bookings): $25.11 billion, up 20% year over year
- Delivery (gross bookings): $23.32 billion, up 25% year over year
The mobility segment, encompassing ride-hailing services, generated revenues of $7.68 billion, marginally exceeding the estimated $7.63 billion. Uber’s delivery business reported revenues of $4.48 billion, also surpassing projections of $4.31 billion. These results demonstrate the sustained momentum across Uber’s core offerings.
Correction: Uber’s net income nearly tripled to $6.6 billion. An earlier version misstated the figure.
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