Uber Technologies, Inc. ($UBER) Earnings (Q3 FY22)

 Uber Technologies, Inc. ($UBER) Earnings and Opinion:


Uber is a company in the Technology sector and operates in the Software-Application industry. Uber develops and operates proprietary technology applications globally. Uber was founded in 2009 and is currently headquartered in San Francisco, California. The company made its debut on the stock market in the middle of 2019.

Uber Earnings Results:

  •  Revenue of $8.343B beating expectations of $8.099B
  • Adj EBITDA of $516M beating expectations of $458.71M
  • EBITDA Margin of 1.80% missing expectations of 5.66%
  • Adj Net Income of -$1.21B missing expectations of -$90.5M
  • Adj Diluted EPS of -$0.61 missing expectations of -$0.06
Opinion:
Uber was up over 11% in todays trading session. The company reported earnings before the market opened this morning. Uber saw some nice growth on a year-over-year basis. The CEO claims that they are not seeing any signs in consumer weakness. A lot of this is credited to the reopening of cities and the travel industry hiking back up. The CEO says that October could be one of the best months for gross bookings. He has high hopes for the company and swears they are performing well for a troubled economic situation. Profitability shook a little bit, as the reports were nowhere near the estimates from Wall Street. A lot of this can be credited to the strength of the dollar and its earnings being affected by that. As far as valuation goes, the company seems to be overvalued. EV/Revenue numbers come in higher than peers and the Ev/EEBITDA numbers also come in high. In my opinion, Uber is a difficult company. They are doing a wonderful job with diversifying the business. However, it seems to be going at too fast of a pace. They are not worried about profitability as much as they should be. Sure these investments look great for the long-term, but right now they are biting Uber in the butt. It will be interesting to see how the next few quarters come out. Uber was able to flirt with profitability on an adjusted basis. However, the misses were brutal on profitability in Q3. I have no position on this one right now, but as we get some more clarity and not just bias opinions from management, I will be able to declare what my take on the company is. 


*Information from Bloomberg and Yahoo Finance

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