- Uber shares dropped around 10% after it reported disappointing second quarter earnings, with losses exceeding $5 billion.
- Revenue came in light, at $3.17 billion for Uber in Q2 2019, versus $3.36 billion expected.
- “No doubt in my mind that the business will eventually be a break even and profitable business,” CEO Dara Khosrowshahi told CNBC.
It was a miss on both top and bottom lines for Uber. Net losses for the ride-hailing company soared to $5.24 billion, largely owing to stock based compensation.
Here’s how the numbers stacked up otherwise versus analysts’ expectations (according to consensus estimates compiled by Refinitiv):
- Loss per share: $4.72, versus $3.12 expected
- Revenue: $3.17 billion versus $3.36 billion expected
“We think that 2019 will be our peak investment year and we think that 2020, 2021, you’ll see losses come down. I think our break even is something that we can push the company to break even if we really wanted to frankly,” said CEO Dara Khosrowshahi in a conversation with CNBC’s Deirdre Bosa. “No doubt in my mind that the business will eventually be a break even and profitable business.”
Excluding stock-based compensation, Uber’s losses were around $1.3 billion, roughly 30% worse than in the preceding quarter.