Uber gives muted holiday forecast as company posts record profit

The company posted operating profit of $1.06 billion in the three months ended Sept. 30, Uber said in a statement on Thursday, easily beating estimates for a metric that was positive just last year.

Although the company set a record, it struggled with foreign exchange headwinds that weighed on its ride-sharing business. Gross bookings, which include rides, delivery orders and driver and merchant revenue but not tips, totaled $41 billion in the third quarter, slightly below the midpoint of Uber's own guidance range. According to estimates compiled by Bloomberg, Wall Street expected $41.2 billion.

Uber has been investing in new areas in both its ride-hailing and delivery businesses in the U.S. and internationally, where the company says it has seen stronger growth. Over the past year, the company has added more transportation options to its platform, including taxis, rideshares and shuttles to airports and other venues.

The company is also expanding its service to suburbs around the world and reaching new customer groups through teen accounts. And deals have been struck with new Uber Eats retailers — such as H Mart, Michaels and JD Sports — that allow customers to arrange deliveries for things beyond just restaurant orders, helping increase order frequency.

Bookings of $42.75 billion to $44.25 billion were forecast for the current quarter, with the median just shy of analyst estimates of $43.7 billion. The midpoint of the company's fourth-quarter adjusted Ebitda guidance range also fell slightly short of expectations.

Shares of Uber fell 6% in early trading after the results were announced. Shares of smaller ride-hailing rival Lyft Inc. also fell about 2% after Uber's earnings report.

In prepared remarks, Chief Executive Dara Khosrowshahi said there are still “great opportunities to increase consumer penetration,” including expansion into less dense markets and signs that fast, on-demand services are becoming a habit for more people. Chief Financial Officer Prashanth Mahendra-Rajah said the company's performance to date “should give investors confidence in our ability to meet our 2026 commitments.”

Uber has also made progress this year in attracting subscribers to its Uber One program by offering discounts to students in the U.S. and Canada. The number of members increased about 70% from a year ago to more than 25 million, the company said, adding that these customers spend more than three times as much each month as non-members.

Expanding Uber's user base and merchant selection in turn helped boost its emerging advertising business, which grew nearly 80% year-over-year and contributed to the adjusted profit increase in the period.