Uber Stock Is Falling, Earnings Reveal a Larger Than Expected Loss
- 7th August 2020
- Posted by: Hakeem
- Category: Stock
Uber Technologies posted weaker-than-expected results for the June quarter, as it still balances a dramatic falloff in its ride-sharing business with a spike in its food delivery arm.
Uber (ticker: UBER) reported adjusted revenues of $1.9 billion, down 33% year over year and falling short of the Wall Street analyst consensus of $2.2 billion. Mobility revenue fell 66%, and delivery revenue surged 162%. The company lost $1.02 a share in the quarter, wider than the Street consensus at 86 cents.
Gross bookings were $10.2 billion, down 35%, or 32% in constant currency—reflecting a 73% drop in the Mobility sector, with a 113% increase in the Delivery sector. Adjusted Ebitda (earnings before interest, taxes, depreciation, and amortization) was a loss of $837 million, $181 million worse than a year ago, and off $225 million from the March quarter. Uber said that number doesn’t reflect costs related to Covid-19. The company said Covid-related expenses increased its GAAP net loss by $48 million.
Uber said it had 55 million monthly active consumers in the quarter, down from 99 million a year ago. Trips were down 56% to 737 million.
“We are fortunate to have both a global footprint and such a natural hedge across our two core segments: as some people stay closer to home, more people are ordering from Uber Eats than ever before,” CEO Dara Khosrowshahi said in a statement.
Uber didn’t provide any guidance on the current quarter in its news release.
Uber said on its conference call with investors that the company expects a third-quarter adjusted Ebitda loss in line with the second quarter. Uber also said it continues to expect to reach adjusted Ebitda profitability at some point in 2021.
Uber stock was down 2.5%, to $33.85, in premarket trading.