Uber announces financial results for the third quarter of 2019, losses stand at $1.2 B
Despite a 29pc growth in gross bookings, San Francisco-based Uber reported a loss of $1.2 billion in the third quarter of 2019.
San Francisco-based ride hailing giant Uber announced its financial results for the quarter ended on September 30. While its gross bookings grew to $16.5 billion, representing a 29-percent year-over-year growth, the net loss stood at $1.2 billion. The net loss includes $401 million in stock-based compensation expense, improved quarter-over-quarter in part due to revenue growth of $647 million.
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CEO Dara Khosrowshahi said:
“Our results this quarter decisively demonstrate the growing profitability of our Rides segment. Rides adjusted EBITDA is up 52 percent year-over-year and now more than covers our corporate overhead. Revenue growth and take rates in our Eats business also accelerated nicely. We’re pleased to see the impact that continued category leadership, greater financial discipline, and an industry-wide shift towards healthier growth are already having on our financial performance.”
After a number of leadership and organisational changes, for the third quarter of 2019, Uber has recognised its operations and financial reporting into five segments – Rides, Eats, Freight, Other Bets, Advanced Technologies Group, and Other Technology Programs.
Adjusted Net Revenue (ANR) growth has accelerated to 33 percent year-over-year, or 35 percent on constant currency basis, as both Rides and Eats ANR take-rates improved quarter-over-quarter to 22.8 percent and 10.7 percent, respectively.
Earlier in April, Uber announced its most awaited IPO. However, soon after that, it reported losses worth $ 1 billion, on a $ 3.1 billion revenue in its first quarter. Compared to the same quarter in 2018, Uber reported a 20 percent growth.
Post the IPO, Uber recorded an unforeseen loss of $5.2 billion. According to media reports, most of the amount – around $ 3.9 billion – was attributed to the stock-based compensation related to the company’s initial public offering.
Nelson Chai, CFO of Uber Technologies said,
“We expect ANR growth to accelerate again in Q4 and continue to focus on financial discipline. As such, we are improving our full tear Adjusted EBITDA guidance by $250 million to a loss of $2.8 – 2.9 billion.”
On September 27, Uber announced its updated app – one that would combine Rides, Eats, and other future offerings side by side. The app is currently testing in hundreds of US and other international cities.
Uber also spoke about acquisition of online grocery provider Cornershop to expand Eats into grocery. The transaction is expected to close in the first half of 2020.
(Edited by Evelyn Ratnakumar)