Uber Reports Loss of Over $5 Billion in The Last Quarter
Earlier this year in April, Uber filed documents with the Securities and Exchange Commission to become a public company. That was the first time the transportation giant disclosed their earnings to the public, where it reported a loss of $10 billion since 2016. Back then, Uber had made it clear that it was expecting to lose more cash as it continues its journey to increase their share in the ride-share market in paperwork.
True to their word, Uber has reported a loss of over $5 billion in the last quarter. Just the second time in reporting the company’s earnings since becoming a public company, this marks the company’s largest-ever quarterly loss.
Uber’s Current Scenario
Currently, Uber has reported only a 14% increase in year-over-year in profits. This has raised quite a few concerns about the company’s excruciatingly slow growth. According to analysts, a loss per share of $3.12 was expected versus the company’s current $4.72. On the other hand, CNBC expected $3.36 billion, or an additional $200 million in revenue.
Uber has held stock-based compensation expenses for employees following the May IPO liable for the heavy losses they have faced. However, Uber reportedly still lost up to 30%, excluding the compensation.
In the earning document, Uber’s Cheif Financial Officer, Nelson Chai mentioned that the company wants to invest aggressively in healthy growth and that they have made good progress in that direction, in the earnings document.
Ever since the company’s ambitious private market valuation failed at Wall Street, Uber has had a rough couple of months since entering the public markets. Hence, in an attempt to cut costs, the transportation giant announced that they plan to lay off nearly 30% of its marketing departments, which comprises of 1,200 people.
Uber’s Ace Card – UberEats
That being said, Uber’s expansion in the food industry, UberEats, is doing well. The company reported that the monthly active consumers grew by 140% year-over-year. Currently working with 320,000 restaurants, the revenue growth of UberEats is grown 72% in revenue.
To know more about the company’s expansion efforts or for latest tech news, keep reading iTMunch!