Uber losses keep growing as the ride-hailing giant scrambles to get its finances in order (UBER)
- Uber reported its third-quarter earnings on Monday, which topped Wall Street’s revenue estimates.
- However, the ride-hailing giant lost more money on a per-share basis than analysts expected.
- Shares sank by as much as 6% to $29.21 in after-hours trading following the report.
- Last week, Lyft topped Wall Street expectations with its earnings report.
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Uber on Monday reported mixed third-quarter financials that sent the stock sinking after hours.
Here are the important numbers:
- Earnings: -$0.68 per share versus an expected -$0.63 per share
- Revenue: $3.8 billion versus an expected $3.4 billion
- Net income: -$1.1 billion, in line with expectations
- Total rides: 1.7 billion
- Active riders: 103 million
Shares of Uber, which have struggled since the company’s initial public offering in May, sank as much as 6% to $29.21 in after-hours trading following the report.
Gross bookings, an important industry measure of total rider receipts before certain expenses, like paying drivers, grew by 29% over the same period last year to $3.7 billion. Total net loss, however, grew to $1.1 billion, or 18% more than the same period of 2018.
“Our results this quarter decisively demonstrate the growing profitability of our Rides segment,” CEO Dara Khosrowshahi said in a press release.
“We’re pleased to see the impact that continued category leadership, greater financial discipline, and an industry-wide shift towards healthier growth are already having on our financial performance,” he added.
Revenue from Uber Eats, one of the company’s fastest-growing segments, rose to $392 million in the quarter, a 105% increase over the same period last year. Uber Freight, which is rapidly scaling in both the US and Canada, now includes more than 50,000 carriers, the company said. It’s the first time Uber has broken out Freight.
Here’s the revenue breakdown by segment:
Uber’s third-quarter report follows Lyft’s last week, in which the smaller competitor topped Wall Street estimates, only to receive a lukewarm response from investors.