Uber Reports $1 Billion in Losses Even as Revenue Grows

Uber Reports $1 Billion in Losses Even as Revenue Grows

On Thursday, May 30, Uber released its quarterly financial report. Revenues were up 20 percent.

But despite the increase in sales, the company reported a loss of $ 34 million in the period. The company's net loss was $1.01 billion, or $2.26 a share. The company's slightly better-than-expected first-quarter earnings and revenues drove optimism, triggering a buying spree in the after-market session. Uber Eats revenue reached $536m in Q1 2019, nearly doubling from the $283m recorded the year prior.

Yesterday after the market closed, American ridesharing services provider Uber Technologies (UBER) announced its results for the quarter ended March 2019.

The results compounded a turbulent few months for Uber. Its stock was up more than 1% in early trading Friday.

What do you think about UBER stock after the earnings? Ride-hailing revenue grew only 9% overall.

Uber's Q1 earnings report was similar to Lyft's Q1 results. The company also has $5.7 billion cash on hand.

"We are now focused on executing our strategy to become a one-stop shop for local transportation and commerce". CFO Chai said the company was prepared to keep spending: "We will not hesitate to invest to defend our market position globally".

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Uber's ride to IPO was a rocky one, with its estimated valuation dropping from $120bn late previous year to $100bn and again to the $82bn it was ultimately valued at when it went public at a share price of $45.

Uber's loss wasn't a surprise-indeed, it was right in line with expectations.

Khosrowshahi said there "absolutely will be consolidation" and signaled that Uber could take part in any acquisitions that make long-term sense.

Uber grew across all of the regions where it operates, except for Latin America, where competitor Didi has been expanding. Uber Eats, its meal delivery service, more than doubled from a year earlier, while Freight jumped more than 200%. However, the ride-hailing company was priced at only $42 per share the following morning.

Uber was "very early in the stages" of exploiting how ride-hailing can help its Eats business, where take rates would improve over 2019, the CEO said. "These are customers that then we can upsell into the rides business", Khosrowshahi said. Any acquisition would be a Plan B, he said. This is before it pays taxes, tolls, fees, wages to drivers, and restaurants. As a result, ride-hailing rates for passengers in NY had increased significantly, Khosrowshahi said, and the volume of rides had declined.

Moreover, Uber is planning to involve itself more in emerging markets.

Uber's IPO did not go well. He added, "I've told our team it is just one moment in a longer journey".

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