Uber Shifts Focus to Profitability as Third Quarter Losses Top $1 Billion
Uber beats quarterly revenue expectations but reports a $1.16 billion net loss, prompting CEO Dara Khosrowshahi to prioritize efficiency over rapid growth. The company now targets adjusted EBITDA profitability for 2021.
Uber releases its third-quarter 2019 earnings and beats analyst expectations for both revenue and loss per share. The company generates $3.81 billion in revenue and reports a loss of 68 cents per share, both of which improve upon Refinitiv estimates. However, the ride-hailing giant still suffers a massive net loss of $1.16 billion for the quarter, causing its stock to drop by roughly five percent.
CEO Dara Khosrowshahi tells CNBC that the company targets adjusted EBITDA profitability for the year 2021. To achieve this goal, Uber shifts its business strategy away from rapid growth and steep consumer discounts. Instead, the company focuses on technological efficiency and new features that naturally lower fares, such as allowing users to save money by walking slightly further to a pickup location.
The tech company also raises its full-year financial guidance by $250 million and narrows its expected adjusted EBITDA loss to a range of $2.8 billion to $2.9 billion. Additionally, Uber reorganizes its internal structure and now reports financial results across five distinct operating segments rather than a single core platform metric. Despite the improved guidance, the company falls slightly short of gross booking estimates and reports 103 million monthly active platform customers.