Uber Technologies Inc (NYSE:UBER, ETR:UT8) slumped more than 11% on Thursday after expectation-beating earnings and revenue failed to overshadow disappointing gross booking figures.
Revenue climbed by 20% to $11.2 billion in the third quarter, aiding a jump in diluted earnings per share from $0.10 to $1.20, Uber reported on Thursday.
Analysts had anticipated revenue of $10.99 billion and per-share earnings at $0.37, according to FactSet.
Operating income of $1.06 billion also marked a record for Uber, having surged from $394 million after turning positive last year.
However, gross bookings came in lower than expected, at $40.97 against estimates for $41.25 billion.
This 16% uptick in gross bookings marked the slowest rate of growth for the figure in over a year, signalling passengers were turning to cheaper modes of transport.
Guidance for the fourth quarter, covering the holiday period, of around $43.5 billion in gross bookings was also lower than analysts’ expectations for $43.7 billion.
“Revenue growth outpaced gross bookings growth primarily due to lower supply incentives and refunds and appeasements, coupled with advertising revenue growth," chief financial officer Prashanth Mahendra-Rajah commented.
Shares fell 11.1% to $70.60 on Thursday.