Wednesday's Headlines: Uber Shares Rise on Growing Customer Base

Wednesday's Headlines: Uber Shares Rise on Growing Customer Base

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Huazhu Hotels Group (HTHT) +10.8%

IDEXX Laboratories (IDXX) +9.8%

Trip.com Group (TCOM) +8.4%

Peloton Interactive (PTON) +6.4%

Wynn Resorts (WYNN) +6.2%

Moving Down ⬇️

Evolent Health (EVH) -9.1%

Trex (TREX) -8.3%

Intuit (INTU) -7.7%

Amazon (AMZN) -5.5%

Atlassian (TEAM) -5.4%

 

Uber Shares Rise on Growing Customer Base 🚕

Shares of Uber Technologies jumped 12% on Tuesday after the company posted strong revenue and forecast tailwinds coming into 2023.

Revenue for the ride-hailing company soared 72% year-over-year to $8.34 billion. That topped average analyst expectations by $220 million. That was led by a 26% increase in gross bookings, highlighting continued demand for the company’s services despite macroeconomic pressures.

The company reported a net loss of $1.2 billion. That was wider than Wall Street had predicted but did include a number of non-operational expenses and unrealized losses in equity investments.

Monthly active customers were up 14% for the quarter and trips completed were up 19%. CEO Dara Khosrowshahi credited the results on the reopening of major cities and a strong return to travel.

Though the CEO said the company sees a number of tailwinds coming into 2023, they are remaining cautious on forecasting given the strong dollar and inflationary pressure that could lead to a recession.

"We are operating on a cautious basis even though if the world were just an Uber world, we'd be celebrating because business is incredibly strong and the outlook for Uber itself is strong," he said.

Shares of Uber have been under pressure this year and hit a 52-week low in the summer following soft demand and profitability concerns. However, the last two quarters have seen more optimism on a path to profitability. Shares of the company are currently down 32% year-to-date.

 

Match Shares Soar on Strong Revenue 💕

Shares of Match Group are up 15% in pre-market trading after the company posted strong quarterly numbers that beat analyst estimates on the top line.

The company announced sales for the quarter of $810 million — up 1% year-over-year despite currency pressures. Earnings of 44 cents per share were in-line with analyst projections. The news comes as a relief for investors amid a tumultuous few months at the company that saw a number of managerial changes.

Revenue for the company’s primary product, Tinder, grew 6% with paying users up 7% year-over-year. Revenue growth was over 16% on a constant currency basis, highlighting the challenges of a strong dollar on international businesses.

The company saw direct revenue for its other brands decline 5% year-over-year with paying users falling 8%. That was offset by a 3% increase in revenue per user. However, within that segment, Hinge, one of its big growth opportunities, saw revenue jump 40%.

Despite this, the company did warn that macroeconomic factors were impacting the business, particularly those brands that serve lower-income customers. Management has forecast flat growth for Tinder revenue in the fourth quarter but said they should see growth return in 2023.

“In the current economic environment, visibility into 2023 performance is challenging. That said, we’re focused on delivering 5% to 10% revenue growth for the full year. We expect Y/Y revenue growth to accelerate gradually as the year progresses and a three-point full year FX headwind.”

 

IDEXX surges on earnings beat 🩺

IDEXX Laboratories rose almost 10% yesterday after it beat estimates but lowered its full-year outlook. The veterinary diagnostics company reported revenue of $841 million compared to the $830 million analysts expected. This was year-over-year growth of 4% but organic sales, which adjust for currency headwinds, increased by 8%.

Earnings per share came in at $2.23, up 12.6% year-over-year.

IDEXX saw growth across its portfolio of products. Companion animal diagnostics, which uses a recurring revenue model, was up 5% this quarter while premium instrument placements saw revenue rise 10%. The only blight was the Livestock, Poultry and Dairy (LPD) segment where revenue fell 2.3% year-over-year. However, this segment is a relatively small part of IDEXX’s business, only generating $28 million this quarter.

In further good news, IDEXX’s operating margin was 29.1% up from 27.9% in Q3 2021.

For full-year 2021, the company now expects overall revenue between $3.32B and $3.36. Past estimates had a more generous range between $3.3B and $3.38B. A strong dollar is certainly taking a bite out of revenue and is now expected to reduce full-year growth by about 4%. FY22 earnings were also reduced to between $7.74 and $7.98 per share.

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