Uber shares fall as it reveals $1bn quarterly loss

Daniel Fowler
November 6, 2019

Uber Technologies Inc. posted better-than-expected financial results for its third quarter Monday, issuing a bold statement from Chief Executive Officer Dara Khosrowshahi that the company may be finally profitable by 2021. "We can only do so with the really, really hard work of all our employees on a global basis, and also the partnership of the cities that we work with, and our drivers". The company expects an adjusted EBITDA loss of $2.8 billion to $2.9 billion for the year.

Analysts had expected a loss of $1.5bn on revenue of $3.6bn, up from $3.2bn in the second quarter.

The loss included US$401 billion in stock-based compensation at the San Francisco-based company, which recently reorganised operations to cut costs.

On a per-share basis, net loss attributable to stockholders narrowed to 68 USA cents from US$2.21. Revenue from Eats came to $645 million, up 64 percent. Just looking at the numbers for the quarter, investors would think that Uber is headed in the right direction, but comments from management suggest that the drive to profitability may be delayed.

Uber convinced more people to use its array of products.

Revenue during the quarter increased by 30% year-over-year, driven by the increase in the number of monthly active platform consumers (MAPCs) and trips booked.

Uber Technologies on Monday (Nov 4) posted a wider third-quarter loss as costs soared at the ride-hailing company, sending shares down 4.4 per cent in after-hours trading.

Islamic State confirms Baghdadi is dead, appoints successor
Earlier, the U.S. had confirmed that Isis spokesman Abu Hasan al-Muhajir was killed by American troops in northern Syria . The ISIS also confirmed death of Abu Hassan al-Mujahir who was ISIS spokesperson since 2016 and a close aide of Baghdadi.

But Uber at the same time is spending heavily to expand into new business areas and is offering vast promotions to gain market share. Revenue growth and take rates in our Eats business also accelerated nicely. Uber's newer initiatives, including a job matching service for gig workers in Chicago and financial services for drivers, further demonstrate the company's grand ambitions.

"We think that there's a better answer out there", Khosrowshahi said. He said the goal is to explain that Uber is in 2021, with an operational profit in the books of.

Khosrowshahi highlighted the growing profitability of Uber's Rides segment. That announcement lifted Lyft shares 11%, and sent Uber up 8% as well. Hazlehurst said that the new service will address those issues typically faced by gig economy Uber drivers in relation to their access to financial services. Some analysts expect more than 80 percent of the company's outstanding shares will become eligible for sale.

"There could be an avalanche of selling as insiders and early private investors head for the exits", said Dan Ives, managing director at Wedbush Securities.

Uber executives reported that immediately after early several years targeted on speedy expansion the enterprise is shifting to turning out to be much more successful as it leverages the strength of its system, achieve and model.

Its shares have lost some 30% since going public in May as investors lose patience with venture capital-fueled startups offering only murky paths to profitability.

Other reports by

Discuss This Article