UBER’s gross bookings reach ATH in Q3 2021, Cloudflare revenue up 51%

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UBER’s gross bookings reach ATH in Q3 2021, Cloudflare revenue up 51%

 UBER’s gross bookings reach ATH in Q3 2021, Cloudflare revenue up 51%
Image source: TippaPatt, Shutterstock

Highlights

  • Uber Technologies, Inc. (NYSE: UBER) posted revenue of US$4.8 billion, in the third quarter of 2021, representing a 72% growth over the year.
  • The revenue of Cloudflare Inc. (NYSE: NET) grew 51% in the third quarter YoY and it added 170 large customers in Q3.
  • The UBER stock fell around 11.64% and Cloudflare grew 164.63% YTD.

Uber Technologies and Cloudflare Inc declared their third-quarter results after market close on November 4. 

The stock of Uber Technologies, Inc. closed at US$45.27 down 0.98% and that of Cloudflare, Inc. was up at a closing price of US$201.09 on November 04.

Uber Technologies (NYSE: UBER) 

The company posted revenue of US$4.8 billion, a 72% growth YoY compared to US$2.8 billion for the same quarter in 2020. 

Gross bookings grew 57% YoY to be US$23.1 billion. Out of the company’s three reportable segments, the mobility segment gross booking revenue was US$9.9 billion, a 67% increase YoY, delivery segment gross bookings was US$12.8 billion, a 50% growth YoY, and freight segment increased 39% to be US$402 million. 

The net loss for the third quarter of 2021 was US$2.4 billion, primarily due to the equity investment revaluation of the company. The earnings per share diluted was a loss of US$1.28 compared to EPS diluted (loss) of US$0.62 in the third quarter of the previous year. 

The adjusted EBITDA was US$8 million, reflecting an increase of US$633 million YoY. The third quarter was the first profitable adjusted EBITDA quarter for UBER after it became a public company.

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The company reported unrestricted cash and cash equivalents of US$6.5 billion as of September 30.

The trips on the UBER platform grew by 39% YoY for US$1.64 billion or nearly 18 million trips per day on average. Its monthly active platform consumers (MAPC) also grew 8% YoY to reach 109 million in Q3, 2021. 

Outlook for fourth quarter 2021

The ride-hailing company expects its gross booking to be in the range of US$25 billion to US$26 billion. The adjusted EBITDA is expected to be in the range of US$25 million to US$75 million for the fourth quarter of 2021.

Its current market capitalization is US$87 billion. The San Francisco, California-based ride-hailing service provider matches riders with the drivers, shippers with the carriers, and customers with food service providers. Its stock fell around 11.24% YTD.

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(Earning Results, Uber technologies and Cloudflare Inc.)

Source – Pixabay

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Cloudflare Inc. (NYSE: NET)

The company posted revenue of US$172.3 million compared to US$114.2 million, showing 51% growth YoY.

The gross profit was US$134.8 million compared to US$87.2 million in Q3 2020. There was an increase in gross margin too from 76.3% in the previous year to 78.2% this year Q3.

The technology security company booked a net loss in Q3. The GAAP net loss was US$107.3 million while on the non-GAAP basis, the net income was US$1.4 million.

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Its GAAP operating loss was US$26.5 million, 15.4% of the revenue compared to US$21.3 million, 18.6% of the revenue in the corresponding quarter in the prior year.

The net cash flow from operating activities was negative US$6.9 million and free cash flow was negative US$39.7 million. The cash, cash equivalents and securities available for sale were US$1.8 billion as of September 30.

The company added around 170 large customers in the third quarter of 2021, making the total number of large customers 1,260.

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Outlook for fourth-quarter fiscal 2021

The total revenue is expected to be in the range of US$184 million to US$185 million. The non-GAAP income (loss) from operations is expected to be between US$1 million to nothing. The non-GAAP net income (loss) per share is expected to be in the range of US$0.01 to nothing. 

Outlook for full fiscal year 2021

Cloudflare expects total revenue to be in the range of US$647 million to US$648 million. The non-GAAP loss from operations is expected to be between US$10.5 million and US$9.5 million and the non-GAAP net loss per share between US$0.06 and US$0.05.

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Cloudflare Inc. has a current market capitalization of US$64 billion.  The San Francisco, California-based security, performance, and reliability company offers a range of network services through its cloud platform. Its products include Argo Smart Routing, Cloudflare Access, web optimizations, and load balancing, among others, aimed to protect and enhance internet applications online. This is done without adding any hardware or installing software.   Its stock gained 164.63% YTD.

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Bottom line

This quarter, UBER’s mobility business recovered to pre-COVID margins, and the restaurant delivery business was also profitable on an adjusted EBITDA basis for the first time. Cloudflare has posted a strong quarter with revenue and large customer growth. The company strategy to reinvest profits back into business for growth has given results and its solid Q3 is evidence of it.

No matter how fast the technology sector or the company is growing, an investor must analyze the company fundamentals and management carefully before investing in them.

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