Uber Technologies Inc (NYSE: UBER) stock rose over 6.5% on November 6th, 2020 (as of 10:48 am GMT-5; Source: Google finance) as the company posted an adjusted third-quarter EBITDA loss of $625 million (£475 million), which was wider than analyst expectations of a $597 million loss, according to IBES data from Refinitiv. UBER in the third quarter of FY 20 has reported the adjusted loss per share of 62 cents, beating the analysts’ estimates for the adjusted loss per share of 65 cents. The company had reported the adjusted revenue of $3.13 billion in the third quarter of FY 20.
The company ended the third quarter with unrestricted cash, cash equivalents and short-term investments of about $7.3 billion, and have access to over $2 billion from the revolver.
Overall, Uber has reported a net loss of $1.1 billion in the months from July to September, including stock-based compensation expenses. The company has also gradually reduced its stake in noncore business units over the past months. A German company in September acquired Uber’s European freight business and Uber has reportedly been seeking options for its Uber Elevate business. Meanwhile, Uber continues to spend money to gain market share over food-delivery competitors. The company is hoping to close its $2.65 billion acquisition of smaller delivery rival Postmates in the first quarter of 2021 to expand further. The revenue at Uber’s delivery unit, that includes Uber Eats, has more than doubled to $1.45 billion, its highest ever, but the unit continues to lose money despite narrowing losses over the past quarters. The company said that cost reductions and margin expansions at its Eats delivery business combined with a return of growth underscored its confidence to achieve quarterly adjusted EBITDA profitability before the end of 2021.
Moreover, the Mobility gross bookings continue to improve throughout the third quarter, nearly doubling from Q2 levels and down 50% year-on-year. The company saw mobility GBs improve 10% month-on-month versus September to down 44% year-on-year. That’s October mobility gross bookings. LATAM and APAC had led the recovery, which was however offset by slower gains in the US and Canada and a modest contraction in EMEA, driven by the new lockdown orders. The US has been an overall drag on the global recovery, as a point of comparison mobility GBs outside of the US were down 34% on October, verses down to 65% in the US.