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Uber Posts $1 Billion Net Loss, in Line With Guidance

Published 05/30/2019, 04:24 PM
Updated 05/30/2019, 04:45 PM
© Reuters.

Investing.com - Uber (NYSE:UBER) reported a first-quarter loss and revenue in line with its previous guidance after the bell Thursday.

In its first earnings report since going public, the ride-sharing company reported revenue of $3.1 billion for the three months ended March 31, just a tad higher than the $3.09 billion expected according to analysts’ forecasts compiled by Investing.com.

It reported a net loss of $1.01 billion, near the high end of its guidance, or $2.26 per share. It said its adjusted loss was $869 million, but did not provide a per-share figure.

In after-market trading, shares were up more than 1% at 4.48 p.m. ET (20:49 GMT).

Gross bookings rose 34% from the year-ago period to $14.65 billion, ahead of its guidance of $14.5 billion. Bookings were up 3.4% from the previous quarter, showing the difficulty of recruiting new riders in saturated markets.

Monthly active platform consumers rose to 93 million, right in line with the company’s forecast.

With its share price trading more than 10% below its IPO price of $45, Chief Executive Dara Khosrowshahi will have to convince investors Uber can turn a profit, given its reliance on rider incentives and competition in all parts of its business, from ride hailing to food delivery to freight.

The results indicate the newly public company was able to hit its own financial targets, likely to offer some assurance to investors.

Costs went up 35% in the quarter, as the company spent heavily in the run-up to its IPO earlier this month.

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"Seems largely uneventful," Atlantic Equities analyst James Cordwell said. "The lack of Q2 or (fiscal year) guidance is a little disappointing – will be interesting to see if there is any forward commentary on the call."

-- Reuters contributed to this report.

Latest comments

Flat
One billion in losses and investors throw their money at them? Yeah, Baby, yeah!!
puts
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