Ride-hailing app Uber has released its earnings for the second time since going public. This time, the company has reported revenues of USD3.16 billion while its losses are recorded at USD5.2 billion for this year’s second quarter.
Uber’s USD5.2 billion in net losses marks the largest quarterly loss for the company–ever. On top of that its 14 percent per year increase in year-over-year overview raises concerns over the company’s most sluggish growth rate. According to the company, stock-based compensation expenses for its workers in the wake of its May IPO is to blame for the majority of its second-quarter losses. But, TechCrunch reports that putting aside the stock compensation would still amount to a loss of USD1.3 billion, that’s 30 percent more losses from the first quarter.
Aven analysts were surprised to miss the mark of USD3.12 losses per share compared to the actual USD4.72. As per CNBC, analysts estimated a USD3.36 billion for revenue, or an additional USD200 million.
Uber’s chief financial officer Nelson Chai said in the report, “While we will continue to invest aggressively in growth, we also want it to be healthy growth, and this quarter we made good progress in that direction.”
The past few months have been rough for Uber since the company decided to go to the direction of public markets. This followed the company’s failure to convince Wall Street of its overly ambitious private market value.
In an effort to significantly reduce costs and increase operational efficiency, the company previously announced that it is going to lay off one-third of its marketing department.
Christian is a morning reporter and technology columnist for Best in Australia. Christian has worked in the media since 2000, in a range of locations. He joined Best in Australia in 2018, and began working in Melbourne in 2019.