Uber took another beating with earnings miss

Uber reported its earnings and it seems like the company is still in trouble because it can't stop losing money.   The ride-sharing company released its 3^rd quarter earnings a few days ago and the stock plummeted after posting a $ 1.16 billion loss.  

Although the company saw its revenues rose 30% during the quarter to $3.8 billion, it wasn’t enough to stop the cash bleed and investors sold out of the stock. However, the revenues were higher than the expectation of $3.7 billion, it came in at $ 3.8 billion.

The stock sold off, it was down 5.7 % at the after hour following the earing report.

What Uber highlighted in their 3^rd quarter earnings report

Revenue of $3.8 billion, with growth accelerating to 30% year-over-year, or 31% on a constant currency basis

Record Rides Adjusted EBITDA of $631 million, fully covering our Corporate G&A and Platform R&D

Financial Highlights for Third Quarter 2019

·       Gross Bookings grew $3.7 billion year-over-year to $16.5 billion, representing 29% year-over-year growth, or 32% on a constant currency basis.

·       Revenue growth accelerated to 30% year-over-year from 14% in the second quarter of 2019.

·       Adjusted Net Revenue (“ANR”) growth accelerated to 33% year-over-year, or 35% on a constant currency basis as both Rides and Eats ANR take-rates improved quarter-over-quarter to 22.8% and 10.7%, respectively.

·       Net loss attributable to Uber Technologies, Inc. of $(1.2) billion, which includes $401 million in stock-based compensation expense improved quarter-over-quarter in part due to revenue growth of $647 million.

·       Rides Adjusted EBITDA of $631 million was the Rides segment’s 8th positive Adjusted EBITDA quarter in a row and covered our Corporate G&A and Platform R&D of $623 million.

·       Adjusted EBITDA of $(585) million improved $71 million quarter-over-quarter.

·       Unrestricted cash and cash equivalents were $12.7 billion, which was up $0.9 billion from the second quarter of 2019 primarily due to the sale of $1.2 billion of senior unsecured notes and the closing of the $1.0 billion investment in ATG.

These are the points that Uber wants investors to digest from the earnings report, it may not necessarily be what you need to make your investment decisions. 

Investors are advised to do their own due diligence before assuming a position in any stocks. 

The author does not own any position in Uber but he plans to own it in the future.