Uber Narrows Quarterly Loss and Moves Profitability Goal to Late 2020
Uber reports a smaller-than-expected fourth-quarter loss and accelerates its EBITDA profitability target to the fourth quarter of 2020. The company also shows strong growth in its food delivery segment while continuing to expand its core ride-hailing business.
Uber stock rises in extended trading after the company reports a narrower-than-expected fourth-quarter loss of 64 cents per share. CEO Dara Khosrowshahi announces that Uber moves its target for EBITDA profitability up to the fourth quarter of 2020, beating its original 2021 forecast. Revenue reaches $4.07 billion, slightly topping analyst expectations, while annualized revenue growth accelerates to 37 percent.
The company's core Rides segment generates $13.51 billion in gross bookings, an 18 percent increase driven by global expansion and premium options like Uber Comfort. Meanwhile, the Uber Eats delivery segment experiences massive growth, bringing in $4.37 billion in gross bookings and surpassing analyst estimates with a 71 percent jump. Uber plans to continue growing its ride-hailing business geographically and through enterprise offerings to improve profit margins.
Despite the positive quarterly results, Uber faces a total net loss of $8.51 billion for the full year of 2019, largely due to stock-based compensation. For the full year 2020, Uber forecasts an EBITDA loss of $1.35 billion, which is significantly better than the $2.83 billion loss anticipated by analysts. The company continues to promote lower-cost transportation options like JUMP electric bikes to expand its overall platform.