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Uber lost an eye-popping $5 billion in a single quarter

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SmittenKitten
2004 Rider
 Posted 9 months, 3 weeks ago

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.

https://www.vox.com/2019/8/8/20793935/uber-q2-earnings-5-billion-loss

Comments

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    Uberserge
    1279 Rider Driver
     9 months ago

    I listen to the earnings conference call yesterday they tried to spin it but it's tough to spin a 5.2 billion dollar laws even though the bulk of it was a one-time charge their business is slowing down and they're getting eaten alive all over the globe by competitors

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      SmittenKitten
      OP 2004 Rider
       9 months ago

      One time charges should have been something clearly disclosed to the investors before IPO. 

      Then again, apparently these were expected by the Wall Street, such as the stocks vesting.

      In any case, the company will change a lot very soon.  Gotta carbs the expenses and R&D will need to be focused more on its core offerings.

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        Uberserge
        1279 Rider Driver
         9 months ago

        Well during the conference call they didn't seem like they're pulling back on anyting they said they're going full speed ahead with expansion all over the globe they will never make money

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          StuffinMuffin
          828 Driver Rider
           9 months ago

          Crash and burn business model. 

          Badass until the end.

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        SmittenKitten
        OP 2004 Rider
         9 months ago

        This is a good article that covers some of where the money went. 

        https://amp.businessinsider.com/where-uber-spends-its-money-lost-5-billion-second-quarter-2019-8

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          momof4
          8153 Rider Driver
           9 months ago

          Without reading the article I would say self driving cars, submarines, helicopters, law suits, paying politicians off, Dara and his minions outrageous salary. Think its time to cut their losses and lose Dara. Hire someone who is not power/money hungry. Repair relationship with drivers and raise fares. Riders are not going to stop taking Uber if they roll out a 15% increase and then another 15% a few months later. Maybe the increase in fares will get rid of some of these dangerous awful passengers we have been dealing with. 

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            JimHemlock
            141 Rider
             9 months ago

            Dara is probably on the hook to stay, by contract, for x months after the IPO.  With that said, I am sure he wants to leave now that he can cash in his stocks and make 100s of millions.

            The thing is, power/money hungry is exactly what the investors want. Those are the characteristics they look for; Job requirement, if you will.  LOL.

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              momof4
              8153 Rider Driver
               9 months ago

              I agree but Dara has a big set of [email protected]!!$ , big ego. Its fine to have that if you can produce. The guy hasnt done crap but piss drivers off even more than Travis. Fired 400 employees, lost some good drivers, and a few of his minions. Really what has the man done? I dont see anything. I think Dara knows how to BS big time:)

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    CWalcutt75
    252 Driver
     9 months ago

    It's all a part of the evil empire.

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      momof4
      8153 Rider Driver
       9 months ago

      Evil Dara K and his minions trying to take over the world's transportation needs. Dara will fail and so will his evil empire. Karma has a way of coming back and biting you in the ass. He must have some big [email protected]!!$! How do you face your investors when you are hemorrhaging money? WTH do you say? How long are these investors going to believe his BS? How does this idiot sleep at night? Your not making money, drivers hate you, and probably most of his employees hate him, and investors have to be getting pissed. 

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    DaimsLer
    264
     9 months ago

    Wall Street not happy?  Wall Street created this.