Investing.com – Uber (NYSE:) drove in a mixed third-quarter report as earnings topped expectations, but revenue fell short. The company also lifted its guidance, forecasting a smaller loss for the full year.
Uber reported a of 68 cents on revenue of $3.53 billion, compared with estimates from Investing.com for a loss of 70 cents a share on revenue of $3.63 billion.
The narrower-than-expected loss comes even as costs continued to surge as the company grows its food delivery and freight businesses.
Costs surged 32% to $4.9 billion for the quarter from a year earlier.
In a sign of rising competition, the company reported a rise in excess driver incentives that pressured contribution profit – how much money the company receives after deducting direct expenses.
In the third quarter, adjusted losses before interest, taxes, depreciation and amortization (LBITDA) – previously called contribution profit or losss – widened 28% to $585 million, with its faster growth business, UBER EATS, falling 67% in the quarter.
The company grew monthly active consumers 26% to 103 million in the previous quarter.
Gross bookings, a measure of total value of rides before driver costs and other expenses, rose 29% to $16.5 billion from a year ago.
“We expect ANR growth to accelerate again in Q4 and continue to focus on financial discipline. As such, we are improving our full year Adjusted EBITDA guidance by $250 million to a loss of $2.8-2.9 billion,” said Nelson Chai, CFO. “We are also providing additional disclosure, both to deliver more visibility into our business and to further align our internal focus on efficiency with our external reporting.”
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