Uber's stock plummets after disappointing Q2 earnings

Daniel Howley
·Technology Editor
Updated

Uber’s (UBER) stock price fell 9% at the start of trading on Friday, a day after the company released a crushing Q2 2019 earnings report. The ride-hailing service missed on analysts' top line estimates, and reported a massive $5 billion loss. Here are the most important numbers from the company's second-ever report as a publicly-traded company.

  • Gross bookings: $15.75 billion versus $15.83 billion expected

  • Adjusted revenue: $2.87 billion versus $3.05 billion expected

  • EBITDA loss: $656 million versus $979 million expected

  • Net loss: $5.23 billion, or $4.72 per share

“Our platform strategy continues to deliver strong results, with Trips up 35% and Gross Bookings up 37% in constant currency, compared to the second quarter of last year,” CEO Dara Khosrowshahi said via a statement.

Uber reported a $5.24 billion net loss in the quarter, though much of that was due to stock compensation following its IPO.

Gross bookings for the service, which include its Uber ride-hailing business and Uber Eats was up 31%, but still fell short of expectations, garnering $15.75 billion versus expectations of $15.83 billion.

The company now has 100 million monthly active consumers.

Uber's biggest North American rival, Lyft (LYFT), reported its Q2 2019 earnings on Wednesday, beating analysts' expectations on both the top and bottom line, with losses of $0.68 per share on $867.3 million in revenue.

Both companies have seen their costs for consumers even out, as they turn their focus toward differentiations between the platforms rather than trying to win a race to the bottom on consumer cost.

They've also had to contend with increased driver compensation in New York City following the passage of legislation that ensured ride-sharing drivers made a living wage of at least $17.22. What's more, the firms are now subject to New York City's congestion pricing, which adds to the overall cost per ride to customers.

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Email Daniel Howley at dhowley@yahoofinance.com; follow him on Twitter at @DanielHowley.

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