Uber Posts $1 Billion Quarterly Loss Despite Revenue Gains
Uber reports $3.8 billion in revenue but loses over $1 billion in the third quarter as its Eats and freight divisions bleed cash.
Uber reports better-than-expected revenues of $3.8 billion for the most recent quarter, but the company still loses over $1 billion. This massive deficit causes the company's stock to drop in after-hours trading, overshadowing the positive 30% revenue growth compared to the same period last year.
Chief executive Dara Khosrowshahi highlights the growing profitability of the core Rides segment, which now covers corporate overhead. However, secondary business units show significant financial strain, with Uber Eats losses growing 67% to $316 million and the freight division's losses ballooning 161% to $81 million.
Stock-based compensation adds another $401 million to the company's expenses, creating further concern as a lock-up period for early institutional investors nears its end. Despite these challenges, Uber implements aggressive cost-cutting measures, including recent layoffs of over 1,100 employees, in a push to reach overall profitability within the next two years.