Uber, the transportation, mobility and delivery services platform, has found the path to profitability. The company had achieved a few quarters of profits due to the variation in the value of its investees, but now it is its business that generates profits. For the second consecutive quarter, the company achieved operating profits between July and September, according to results published this Tuesday by the company. It also achieved net profits and did so, furthermore, with strong growth in activity on the part of its users and a record number of drivers: 6.5 million, who earned an average of close to $2,500 in the quarter.
Uber’s turnover increased by 11.4% in the third quarter, to 9,292 million dollars (about 8,700 million euros at the current exchange rate), a figure that falls below analysts’ expectations. The company attributes the gap to the impact of $521 million due to changes in the way of accounting for promotions and payments to drivers. With the figure for the third quarter, accumulated income in the first nine months of the year increases by 17.5%, to $27,345 million.
This increase in income has allowed the company to achieve quarterly profits of 221 million dollars, compared to losses of 1,206 million in the same period of the previous year. The profits are due to its positive operating result, of 394 million dollars, compared to red numbers of 495 million a year ago. The company faces the last quarter of the year with the possibility of closing it positively. In nine months he earns 458 million. Last year, in that same period, it had losses of 9,738 million that were due not only to its negative operating result, but also to the depreciation of its investees Aurora, Grab and Didi. Uber has also achieved strong cash generation: free cash flow was 905 million in the quarter, compared to 358 million the previous year.
Gross reservations grew by 21% year-on-year in the third quarter, reaching 35,281 million dollars, thanks above all to the 31% increase in the mobility segment, up to 17,903 million, accompanied by an increase in gross distribution reservations of 18%. %, up to 16,094 million dollars. The mole was in the billing for cargo shipments, which were reduced by 27%, to 1,284 million dollars. Total trips grew by 25% year-on-year, to 2.4 billion, which is equivalent to about 27 million daily trips on average.
For the fourth quarter, Uber has given a forecast of gross booking income of $36.5 billion to $37.5 billion, in this case above forecasts. The company expects to achieve an adjusted gross operating result of 1,180 to 1,240 million in the final stretch of the year, also above market expectations.
Great success in Argentina
“These results demonstrate that Uber continues to drive profitable growth at scale and why we believe we are well positioned for the path ahead, in good or bad macroeconomic environments,” Dara Khosrowshahi, CEO of Uber, told the analysts. “Firstly, consumer demand on our platform remains healthy as we enter the busiest period of the year. “This trend continued in the fourth quarter, as in October we reached all-time highs in total trips and gross bookings, driven by the strength of both mobility and delivery,” he added.
“We are advancing at a good pace in several large and underpenetrated markets, such as Spain, Germany, Argentina, Japan, Italy and South Korea,” Khosrowshahi highlighted to analysts when referring to the mobility business. “In particular, in the third quarter, despite a hyperinflationary environment, mobility trips in Argentina grew more than 150% year-on-year, as we continue to benefit from the strong adjustment of taxi and Motorcycle products to the market and from geographic expansion. outside of Buenos Aires.” In Japan, one of the countries where it has had the hardest time to penetrate, Uber has been formally admitted to the national taxi association, which will allow it to accelerate its implementation in the market.
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