Global Economy

Uber stock falls after earnings beat estimates, but quarterly loss topped $1 billion

Uber co-founder Ryan Graves (right) stands with CEO Dara Khosrowshahi on the floor before ringing a ceremonial bell signifying the first trade as the ride-hailing company Uber makes its highly anticipated initial public offering on May 10, 2019 in New York City.

Spencer Platt | Getty Images

Uber announced earnings Monday that beat analyst estimates on the top and bottom lines for its third quarter of 2019. But the stock fell as much as 6% after the company reported over $1 billion in net losses.

Here are the key numbers:

  • Loss per share: 68 cents vs. 81 cents expected, according to Refinitiv estimates
  • Revenue: $3.81 billion vs. $3.69 billion expected, according to Refinitiv

Uber reported a net loss of $1.16 billion for the quarter, topping its $986 million loss during the same quarter last year. The loss includes $401 million in stock-based compensation. In an interview with CNBC’s Deirdre Bosa Monday, Khosrowshahi said the company is targeting adjusted EBITDA profitability in 2021.

“We know there is the expectation of profitability, and we expect to deliver for 2021,” Khosrowshahi said.

Uber raised guidance for its full year 2019, saying it expects adjusted net revenue to accelerate in the fourth quarter. The company bumped its guidance by $250 million, saying it now expects an adjusted EBITDA loss of $2.8 billion to $2.9 billion for the year. 

The company reorganized its internal structure during the third quarter and provided results for its five operating segments: Rides, Eats, Freight, Other Bets and Advanced Technology Group (ATG) and Other Technology Programs. Uber will no longer report metrics for its core platform as a result, the company said.

Uber fell short of estimates for gross bookings across its services, reporting $16.47 billion compared to estimates of $16.7 billion, according to Refinitiv. Uber reported 103 million Monthly Active Platform Customers (MPACs), or the number of unique customers who completed a ride or received a meal delivery on the platform at least month in a month on average over the quarter. Analysts expected MPACs to reach 104 million, according to Refinitiv. The company’s take rate, calculated as the adjusted net revenue as a percentage of gross bookings, topped analyst estimates of 20.2%, coming in at 21.5%.

Revenue for Uber Eats, the company’s food delivery service, was up 64% year over year, clocking in at $645 million. Last quarter, revenue for the segment came in at $595 million. Uber Freight grew 78% year over year, coming to $218 million for the quarter. Uber’s most established segment, rides, grew 19% year over year to $2.90 billion. 

Uber reported $38 million in revenue for its Other Bets compared to $3 million in the same quarter last year. Revenue for ATG and Other Technology Programs was $17 million, according to the release.

Correction: This story has been updated to reflect the correct revenue estimate.

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