After having soared 12% for the week, the stock rose 7.63% to $30.93 a share in post-market trading. The stock had rallied as the company said it would cut costs aggressively, as did competitor Lyft (LYFT) - Get Report.
Here were Uber's results versus Wall Street’s expectations:
- Revenue: $3.54B v. $3.53B
- Total Trips: 1.658B
- Rides Gross Bookings: $10.874B
- Eats Gross Bookings: $4.683B
- Operating Margin: -34% v. -30%
- Net loss per share: $1.70 v. 34 cents
Revenue grew 14% year-over-year, driven by the Eats business, as rides gross bookings fell 5% year-over-year but Eats gross bookings rose 52%. Total trips rose 7%.
While management wasn’t very specific about forward looking statements — and it didn’t offer guidance — the company said the ride-sharing recovery may vary by region.
Here was the key comment from management:
"Along with the surge in food delivery, we are encouraged by the early signs we are seeing in markets that are beginning to open back up. Our global footprint and highly variable cost structure remain an important advantage, as our expectation is that the Rides recovery will vary by city and country.”
The stock now trades at the most expensive valuation it has ever traded at by far, at roughly 10 times enterprise value-to-sales expected for 2021.