Uber gave life to an advertising division dedicated to monetizing a community that between users and drivers is close to 125 million.
In this way, it seeks to add income to obtain higher margins.
The news was published in financial report that the company announced this Tuesday, November 1.
Uber’s advertising division went live in October and, according to the company, the business has already reached 350 million dollars in revenue and has an annual goal of reaching $1 billion in ad sales by 2024.
Along with this development, Uber’s financial report says its total revenue and profit increased in its latest quarter as people spent more on rides and food delivery. This, even in a context of high inflation and with everyone’s concerns about the weakening of the economy.
Uber’s revenue in the three months between July and September increased 71 percent relative to the same quarter of 2021, to $8.3 billion.
Earnings, meanwhile, reached 510 million dollars, the highest value in the history of Uber, which has only been making a profit since last year.
Dara Khosrowshahi, chief executive of Uber, said in a statement that he is “Surprised” for “the performance of Uber’s core business, even when the global macroeconomic environment is uncertain.”
After the communication of the financial results, Uber shares rose more than 7 percent in after-hours trading on Wall Street.
Analyzing the complete finances of the holding companyUber still posts a net loss of $1.2 billion.
This was basically due to the decline in the value of its holdings in Didi Global and autonomous driving startup Aurora Innovation.
The actions of Uber and its plans in advertising
Uber shares have underperformed the broader market over the past 12 months, down 39 per cent from December 2021, while the tech-heavy Nasdaq Composite Index fell 29 per cent.
The third quarter of 2022 has not been easy for the main companies linked to technology.
As we reflected on Merca2.0 last week, the shares of the parent company of Facebook (Meta Platforms), Amazon, Microsoft and several others have been affected by results much worse than expected.
These companies flourished during the pandemic, when life and work moved online, but now things have changed and it’s spooking investors.
Sales of personal PCs and other devices are falling for many reasons, but especially as inflation-hit consumers are cutting back on spending and business customers tightening their budgets.
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