Uber’s Stock Dropped After Uber Announced its Earnings

AAATrade
AAATrade
Nov 6 · 2 min read

On Monday, Uber announced its earnings for the third quarter. The company lost over $1 billion in net losses and the stock dropped 5% after the announcement. Last year the same period the company lost $986 million.

According to Refinitiv, it was expected 81 cents loss per share, however, the actual loss was 68 cents per share. Also, Refinitiv estimated $3.69 billion revenue but the actual revenue was $3.81 billion which is a 30% increase than last year’s result.

The company showed a net loss of $1.16 billion including in stock-based damages.

“We know there is the expectation of profitability, and we expect to deliver for 2021,” Khosrowshahi Uber’s CEO said.

“The focus really is to drive lower rates based on the best technology out there rather than driving the growth through discounting,” he added.

Khosrowshahi also said that now the company will focus on efficiency and profitability than rapid growth. “It was absolutely the right set of priorities for the time,” he said. “Our priorities are changing.”

Uber reported 103 million active monthly users. The company reported $645 million in revenue for Uber Eats, which is an increase of 64%. Uber Freight rose 78% in one year that is around $218 million for Q3. The revenue from “Other Bets”, including dockless bikes and e-scooter business, was $38 million for Q3.

The company reported that has cash equivalents of $12.7 billion. Uber increased its secured cash when it sold $1.2 billion of senior unsecured notes and when Uber closed a $1 billion investment in ATG.

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Last updated: 06 November 2019.

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