Wall Street isn’t happy.
Uber lost more money this spring than it did in any previous quarter, revealing on Thursday a dramatic $5.2 billion deficit in the months before and after its disappointing initial public offering.
Losses of that size in just a three-month period might ordinarily trigger yet another round of questioning about whether the ride-hailing company can ever build a profitable business, a concern that has dogged the company since it became a Silicon Valley darling. But the company said that almost $4 billion of that amount is due to stock-based compensation that the company had to pay out as it went public.
Even if you exclude that IPO-related cost, the company still lost $1.3 billion — more than a 50 percent larger loss than during the second quarter of last year. (Although it was a private company until this May, Uber has been disclosing limited financial data to reporters in recent years.)
Since its second quarter last year, Uber’s revenue grew by just 14 percent, to nearly $3.2 billion. Uber’s net revenue grew 51 percent from the second quarter of 2017 to the second quarter of 2018.
The $5.2 billion loss size spooked Wall Street on Thursday. Uber’s shares were down about 5 percent after hours.