(Editor’s note: this article has been revised to reflect the fact the company had negative EBITDA of $23 million in the first quarter of this year.)
Uber Freight managed to record a slightly improved fiscal performance in the third quarter compared to the second, with a small reduction in its EBITDA loss and an increase in revenue.
Uber Freight’s adjusted earnings before interest, depreciation and amortization, which continues to be the benchmark most closely watched on its performance, rose to negative $13 million, up from negative $14 million in the second quarter. Year over year (y/y), Uber Freight’s EBITDA declined from positive $1 million in the third quarter of 2022.
The last five quarters of adjusted EBITDA at Uber Freight, starting with the third quarter of 2022, have come in at $1 million, negative $8 million, negative $23 million, negative $14 million and negative $13 million.
What might have been the biggest development at Uber Freight in recent months didn’t take place inside the company. Instead, it was the demise of fellow digital brokerage Convoy.
Without identifying Convoy by name, Dara Khosrowshahi, CEO of the parent company (NYSE: UBER), said in prepared remarks that coincided with the company’s earnings release that current conditions may create an opportunity for Uber Freight.
“Uber Freight has been able to weather trends better than some of its competitors, as evidenced by several industry players winding down operations,” Khosrowshahi said. “While we see early signs of stability in the market, we aren’t hanging our hats on an imminent rebound. In fact, it’s in tough market environments where we can further differentiate our offerings from sub-scale traditional competitors.”
In the statement, Khosrowshahi said Uber Freight had implemented “approximately $50 million of annualized cost savings in a tough market backdrop.”
Uber Freight’s revenue rose slightly, to $1.29 billion from $1.28 billion in Q2. A year earlier, revenue was $1.75 billion.
Another metric for Uber Freight is the adjusted EBITDA margin as a percentage of gross bookings. That number was down 110 basis points y/y but was up 10 bps sequentially, rising to 1%.
In his statement, Khosrowshahi focused on several steps taken by Uber Freight recently to improve and enhance its technology offerings.
Those offerings, released to Uber Freight’s users at a late-September conference, include an update of the company’s transportation management system, the introduction of software offering Uber Freight Exchange, which aims to improve procurement, and greater use of AI.
With the outlook for the freight market not improving, Khosrowshahi said that reality is “why Uber Freight continues to diversify far beyond being a leading digital brokerage into a full enterprise suite of technology and services that power the global movement of goods.”
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