Uber Posts Wider-Than-Expected Loss
Uber Technologies, Inc. (UBER) - Get Report reported a wider-than-expected loss on lower revenue after the bell Thursday as its ride-sharing business continues to suffer from the effects of the coronavirus pandemic and economic shut downs.
Uber posted an adjusted loss of 62 cents a share on revenue of $3.1 billion. The company had been expected to lose 61 cents a share on sales of $3.2 billion, based on a FactSet survey of 30 analysts.
In the same period a year ago, the company posted a loss of 68 cents a share on sales of $3.8 billion.
Uber said gross mobility bookings, its core ride-share business, fell 53% to $5.9 billion from a year earlier. Its delivery bookings, tied to its Eats services, rose 134%, to $8.55 billion.
“Despite an uneven pandemic response and broader economic uncertainty, our global scope, diversification, and the team’s tireless execution delivered steadily improving results, with total company Gross Bookings down just 6% year-on-year in September,” said Dara Khosrowshahi, Uber CEO, in a statement.
The stock has risen 18.1% since the company last reported earnings on Aug. 6.
Uber and fellow rideshare operator Lyft (LYFT) - Get Report saw their stocks surge Wednesday after a California ballot measure backed by millions of dollars from the companies passed. The measure classified app-based drivers as contractors, overturning the effect of a state law that had classified gig-economy workers as employees entitled to labor protections.
Uber shares were active in after-hours trading, gaining 40 cents, or 1%, to $42.25. In the regular trading session shares of the stock gained 97 cents, or 2.4%, to $41.96.
