Quarterly profits miss expectations at Uber

(Sharecast News) - Uber Technologies's quarterly figures disappointed on Tuesday, sending the shares sharply lower, despite a surge in trips and bookings. The New York-listed firm said trips grew by 22% in the third quarter, to 3.5bn, while gross bookings rose by more than expected, up 21% at $49.7bn.

Revenues motored 20% higher at $13.5bn, also ahead of forecasts, for $13.28bn.

Chief executive Dara Khosrowshahi said: "Uber's growth kicked into high gear in the third quarter, marking one of the largest trip-volume increases in the company's history."

However, operating profits missed expectations. They came in 5% higher at $1.1bn, but were notably below consensus for $1.6bn.

Weighing on profits was a $479m charge for potential legal and tax settlements.

Uber did not provide specific details, other than to confirm it covered "significant legal proceedings or governmental investigations related to worker classification definitions" or tax probes.

It added: "These matters have limited precedent, cover extended historical periods and are unpredictable in both magnitude and timing."

As at 1600 GMT, the Wall Street stock had fallen 7%.