Uber releases Q3 financials
Uber finally turned a profit. Q3 2023 showed net income of $221 million, a complete reversal from the $1.2 billion loss they posted in Q3 2022. This is what happens when a company stops burning cash on growth at all costs and starts focusing on unit economics.
The numbers look solid. Gross bookings jumped 21% to $35.3 billion, revenue climbed 11% to $9.3 billion, and they generated $905 million in free cash flow. What I like most is seeing both Mobility and Delivery growing - it shows they're not cannibalizing one business to prop up the other.
Dara Khosrowshahi's crediting better product experiences, which led to a 25% increase in trips. That's the right focus. Make the app better, people use it more. Simple.
Nelson Chai, the CFO, is talking about "disciplined investments in growth avenues" - which I hope means they've learned their lesson about reckless spending. Their Q4 guidance projects gross bookings between $36.5-37.5 billion and adjusted EBITDA of $1.18-1.24 billion.
I've been critical of Uber's path to profitability for years, so I'll give credit where it's due. They're finally showing they can run a sustainable business. The question is whether they can maintain this while still growing. The holidays will be a good test.