The ride-sharing giant topped Wall Street forecasts with earnings of 58 cents a share on revenue of $3.9 billion. However, the company’s adjusted EBITDA came in at negative $509 million, wider than expected.
The company had been expected to report a loss of 52 cents a share, on sales of $3.8 billion, based on a FactSet survey of 29 analysts.
In the same period a year ago the company posted a loss of $1.02 a share on sales of $2.2 billion.
“In Q2 we invested in recovery by investing in drivers and we made strong progress, with monthly active drivers and couriers in the US increasing by nearly 420,000 from February to July,” said Dara Khosrowshahi, CEO. “Our platform is getting stronger each quarter, with consumers who engage with both Mobility and Delivery now generating nearly half of our total company Gross Bookings.”
Shares of Uber fell $3.57, or 8.5%, to $38.24 in after-hours trading Wednesday.
The stock has fallen about 16% since the company last reported earnings on May. 5.
On Tuesday, Uber rival Lyft LYFT reported a narrower loss for its latest quarter.
Late last month, Uber Freight announced plans to acquire Transplace, a transportation management company, from TPG Capital for $2.25 billion.
Uber shares were hit in late July on a report that Japanese financial services giant SoftBank was selling a chunk of its stake in the ride-hailing and delivery service app.
Reports indicated SoftBank may have sold the stake to offset steep losses from its investment in China-based ride-hailing app Didi Global (DIDI) - Get DiDi Global Inc. Report. Didi went public in June, but saw its shares tumble shortly afterwards as the Chinese government launched a crackdown on companies listing in the U.S.
Uber holds approximately 144 million ordinary shares of Didi, acquired when it sold its China operations to Didi and exited the market several years ago. It said the carrying value of its shares as of the June 30 IPO was $7.3 billion, up from $5.9 billion at the end of the first quarter.