Ride sharing and food delivery app Uber (UBER) reported 3Q22 earnings Tuesday morning and I believe the company is turning the corner. For a long time UBER seemed like the ultimate symbol of Silicon Valley excess: a company that focused on getting as big as possible without worrying about profitability to the point that many wondered: Will it ever be profitable?
But UBER’s 3Q22 report has gotten my attention because for the first time I can see light at the end of the tunnel. Mobility and Delivery segment Gross Bookings both came in strong at $13.7 billion. UBER was profitable on an Adjustable EBITDA basis at $516 million – and they guided 4Q22 Adjusted EBITDA to $600-$630 million. GAAP purists will argue that this isn’t real profitability but I’ve looked at what it excludes and believe it is a valid metric.
It’s been a long ride but the initial business plan to disrupt and take over the taxi industry seems to have become reality. When people need a ride nowadays they turn to UBER which provides an excellent service at a reasonable price. I’ve long been skeptical of UBER but now I’m a believer and I’m putting my money where my mouth is.