Uber revenue beats estimates

On Tuesday, Uber Technologies Inc forecast fourth-quarter operating profit above Wall Street estimates, Reuters reported. The company will bet on cost control and growing demand for travel as customers resume spending more of their money on travel.

According to CEO Dara Khosrowshahi, due to the cities reopening and the boom in short-distance travel, consumers are reallocating their budget to different types of services. Now the situation is different, compared to two years of quarantine, when consumer spending was limited and people spent the majority of their money to cover basic needs.

Khosrowshahi told analysts there are no signs of consumer weakness at the moment. As stated by the Uber CEO, consumer weakness is not evident even in Europe, where there is a strong demand for travel and the cost of living is skyrocketing.

For the fourth quarter forecast, the company adjusted EBITDA. This indicator of the company's profitability is considered to be the object of close observation by investors. It is expected that in the fourth quarter this figure will vary in the range from $600 to $630 million. However, according to Refinitiv data, analysts had expected a fourth-quarter profit of $569.39 million.

The company’s revenue rose 72% to $8.34 billion and adjusted profit was $516 million, both beating estimates. However, the company posted a quarterly loss of $1.2 billion due to Uber's equity investments.