Uber Technologies Inc (NYSE: UBER) announced its second-quarter financial results after markets closed on Thursday, August 8 that revealed over a $5 billion loss.
Shares of the ride-sharing giant were down more than 10% in after-hours trading session at the time of publication, after losses widened more than expected. Uber ended the regular trading session with a gain of $3.31, or 8.35% to change hands at $42.97 a share.
The company said it paid $298 million in cash and stock to drivers to show appreciation in connection with its initial public offering during the quarter. It also spent $3.9 billion to pay stock-based compensation and expenses.
Uber’s results come a day after rival Lyft (NASDAQ: LYFT) posted impressive revenue growth in the second quarter and improved its 2019 guidance.
Dara Khosrowshahi, chief executive officer of Uber said he expects the company’s losses to reduce in coming years as it continues to invest aggressively. Khosrowshahi said there is no doubt Uber will ultimately turn a profit.
UBER Earnings & Outlook
Uber had a loss of $4.72 per share in the quarter while analysts had called for a loss of $3.12 per share, according to data compiled by Refinitiv.
Companywide revenue came in at $3.2 billion in the quarter, representing a 14% increase from $2.7 billion in the second quarter of the previous year. Revenue in its Uber Eats business grew 72% from $346 million in the prior-year quarter to $595 million in the second-quarter of last year.
Uber hit the 100-million mark in monthly active platform consumers for the first time in July. The company also recorded 37% year-on-year growth in gross bookings and 35% year-on-year growth in trips.
Uber CEO Comments
“Our platform strategy continues to deliver strong results, with Trips up 35% and Gross Bookings up 37% in constant currency, compared to the second quarter of last year,” said Khosrowshahi in a press release. “In July, the Uber platform reached over 100 million Monthly Active Platform Consumers for the first time, as we become a more and more integral part of everyday life in cities around the world.”
Uber Technologies Inc Profile
Uber Technologies is a technology provider that matches riders with drivers, hungry people with restaurants and food delivery service providers, and shippers with carriers.
The firm’s on-demand technology platform could eventually be used for additional products and services, such as autonomous vehicles, delivery via drones, and Uber Elevate, which, as the firm refers to it, provides “aerial ride-sharing.”
Uber Technologies is headquartered in San Francisco and operates in over 63 countries with over 91 million users that order rides or foods at least once a month. Approximately 83% of its gross revenue comes from ride-sharing and 16% from food delivery. – Warrior Trading News