Uber Technologies Inc. (UBER, Financial) released its second-quarter earnings after the closing bell on Aug. 8. The company failed to meet both top and bottom-line estimates.
Earnings highlights
The ride-hailing company recorded a net loss of $5.2 billion, or $4.72 per share, in the second quarter, which was wider than Wall Street’s anticipated loss of $3.12. The loss was on account of costs associated with stock options offered to employees. Moreover, Uber generated $3.17 billion in revenue, which did not meet analysts' expectations of $3.36 billion.
"We could push the company to break even if we wanted to, frankly, but I think what you will see from us is...lower losses going forward while at the same time we aggressively invest in new growth levers," CEO Dara Khosrowshahi said.Ă‚ "But there's no doubt in my mind that eventually the business will be a break even and profitable business."
Ridesharing and Uber Eats revenue
The company’s ridesharing revenue rose a meagre 2% to $2.3 billion in the second quarter compared to the prior year. The company cited one-time driver appreciation payments as the reason for the growth.
Uber Eats’ quarterly revenue came in at $595 million, which reflected an impressive surge of 72% year over year. During the reported quarter, the company more than doubled its number of monthly customers.
Gross bookings
Gross bookings, which comprises the total dollar value of rides, Uber Eat meals as well as the amount received from freight shippers, inched up 31% to $15.7 billion.
Gross bookings at Uber’s core ride-hailing business totalled $12.19 billion, surpassing estimates of $12.11 billion. On the other hand, Uber Eats experienced gross bookings of $3.39 billion, which fell shy of the $3.51 billion expected.
Last word
The ride-hailing giant is investing in the development and enhancement of self-driving vehicles, public transit deals, growth of its bicycle and scooter business and its freight delivery problem. Uber plans to introduce more options for its shared rides like its car-pooling and public transit features.
Disclosure: I do not hold any positions in the stocks mentioned.
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