Uber reported third quarter results on November 4 with the operating business strong and the GAAP headline weak. Gross bookings rose 20 percent to 59.82 billion dollars on 4.1 billion trips, the fifth consecutive quarter of bookings growth above 20 percent. Revenue rose 10 percent to 14.77 billion dollars, held back by a United Kingdom mobility business model change that cut reported revenue by about 1.1 billion dollars. Monthly active platform consumers reached 215 million, up 14 percent.
Profitability on the company’s measures improved. Non-GAAP operating income rose 38 percent to 2.30 billion dollars, adjusted EBITDA rose 31 percent to 2.96 billion dollars, non-GAAP earnings were 0.88 dollars a share, and free cash flow was 2.5 billion dollars, taking trailing twelve month free cash flow to a record 10.4 billion dollars. GAAP net income fell to 512 million dollars from 6.63 billion dollars a year earlier, reflecting a 476 million dollar pre tax loss on equity investment revaluations against a year ago period that carried a large tax benefit.
By segment, mobility gross bookings rose 18 percent to 29.5 billion dollars, delivery rose 22 percent to 28.5 billion dollars and freight rose 35 percent to 1.77 billion dollars, but mobility revenue fell 2 percent on the model change and on fuel costs and tighter driver supply in markets including India and Brazil. Uber said conflict in the Middle East cut about 75 basis points from mobility bookings growth, with about 100 basis points expected in the fourth quarter.
Fourth quarter guidance was for gross bookings of 63.25 billion to 65.25 billion dollars, non-GAAP earnings of 0.95 to 0.99 dollars a share and adjusted EBITDA of 3.13 billion to 3.23 billion dollars. The company also said President and Chief Corporate Affairs Officer Jill Hazelbaker will depart on November 30.