Uber plunged 12% after losing more money than expected
- Uber reported second-quarter earnings Thursday that fell short of analyst expectations.
- Shares tanked as much as 12% in aftermarket trading on the news.
- Uber's CEO Dara Khosrowshahi said that losses should come down in the next few years.
- For more stories, go to www.businessinsider.co.za.
Uber lost more money in the second quarter than experts expected.
Shares of Uber sank as much as 13% late Thursday after the company reported second-quarter earnings results that missed analyst expectations.
Here is what Uber reported versus what analysts surveyed by Bloomberg expected:
- Revenue: $2.87 billion versus $3.05 billion expected
- Earnings per share (GAAP): $-4.72 versus $-3.23 expected
- Net loss: $5.24 billion, in-line with estimates
- Gross bookings: $15.76 billion
The company posted a net loss of $5.24 billion for the quarter, which it said was mostly due to stock-based compensation from its May IPO. Without the stock-based compensation, losses were about $1.3 billion, 30% more than in the previous quarter. It also posted sales lower than what analysts expected.
Revenue was $2.87 billion for the quarter, up 12% from the previous year but below the $3.05 billion that analysts anticipated. Gross bookings rose to $15.76 billion, an increase of 31%, but Uber Eats bookings were a smaller portion of that growth than analysts expected, bringing in only $3.39 million.
The earnings miss comes just a day after Uber's top US competitor Lyft beat analyst expectations for its performance in the second quarter, sending shares up as much as 8%. Uber stock initially rose about 7% after Lyft's earnings beat.
Uber's CEO Dara Khosrowshahi said that competition is cooling in the ride-hailing market. "We're definitely seeing the competitive environment improve," he said on a call Thursday.
He also said that shrinking losses are in Uber's future. "We think that 2019 will be our peak investment year," he said. "In 2020, 2021, you'll see losses come down."
Uber was down 5% since its initial public offering through Thursday's close.
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