Against expectations of many analysts, American multinational transportation network, Uber on Thursday reported a very disappointing second-quarter loss. Following the announcement, the stock went down as much as 12%, or $5.33, in after-hours trading.
Below are some figures reported.
Revenue: $3.17 billion
Earnings per share (GAAP): -$4.72 versus -$3.23
Net loss: $5.24 billion
Gross bookings: $15.76 billion (up 37% year over year)
$3.9 billion of the losses is from stock-based compensation to employees related to the company’s initial public offering in May – a typical expense for companies who go public.
Perhaps, investors won’t be surprised because Uber had warned in regulatory filings that this huge expense would occur.
Uber spent $920 million in cash during the second quarter, which is $767 million increase compared to the same quarter in 2018
“‘We’re very confident that this company, at maturity, can be cash-flow positive,” CEO Dara Khosrowshahi said on a conference call with analysts.
Uber, which laid off 400 marketing employees last month, reported $1 billion loss in the first quarter of 2019.
