Uber reports massive $5.2 billion loss in second quarter 2019

Share to friends

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.

READ ALSO  Tesla stock surges nearly 20% after streak of losses, biggest daily rise in a year
Uber CEO Dara Khosrowshahi

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.