Unlike its smaller rival, Uber's earnings results shit the bed, with Q2 adjusted sales falling short of estimates, and it posting a stunning $5.24 billion net loss ($4.72 loss per share vs estimates of $2.03 loss) - the largest loss ever.
Uber generated $3.17 billion in revenue ($2.87 billion in adjusted revenue) for the second quarter, a 12% increase from a year earlier but below the $3.05 billion that analysts had expected for the quarter. Meanwhile, net income loss from $878 million a year ago to a record $5.2 billion, a big part of which was attributable to the company's IPO.
Meanwhile, the company continues to burn cash: in Q2, adjusted EBITDA was ($656) million, and increase of 125% from the ($292) million a year ago.
CEO Dara Khosrowshahi's takeaway in the press release:
“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.
“In July, the Uber platform reached over 100 million Monthly Active Platform Consumers for the first time, as we become a more and more integral part of everyday life in cities around the world.”
UBER shares plunged 12%, crashing to almost record lows seen shortly after the IPO...
In an attempt to spin some silver-lining on this weakness, Khosrowshahi, Uber’s chief executive officer, said investors should expect to see losses decline next year.
“We think that 2019 will be our peak investment year,” he said on a call with reporters Thursday.
“In 2020, 2021, you’ll see losses come down.”
2020, 2021, or whenever really!