Uber Posts Record $5.2 Billion Loss as Growth Slows
Uber reports a massive $5.2 billion second-quarter loss, its largest ever, while revenue growth slows to just 14 percent. The disappointing earnings cause the company's stock to plummet more than 11 percent.
Uber releases its second-quarter earnings report as a public company, revealing a staggering $5.2 billion net loss on $3.16 billion in revenue. The ride-hailing giant's stock drops more than 11 percent on the news after closing just below its $45 IPO price the previous day. This massive loss marks the company's largest-ever quarterly deficit, fueled largely by stock-based compensation expenses tied to its May IPO.
Even without the stock compensation costs, Uber still loses $1.3 billion, which represents a 30 percent increase from the first quarter. The company falls short of analyst expectations, posting a loss per share of $4.72 compared to the expected $3.12 and missing revenue estimates by $200 million. Additionally, year-over-year revenue growth slows to just 14 percent, sparking serious concerns about the company's trajectory.
In response to these financial struggles, Uber recently lays off one-third of its marketing department in an effort to cut costs and improve efficiency. Despite the bleak overall picture, the Uber Eats delivery segment shows strong momentum with monthly active platform consumers growing 140 percent year-over-year and revenue reaching $595 million. This mixed performance contrasts sharply with competitor Lyft, which beats revenue expectations just one day earlier.