Shares of Uber rose slightly after the company reported better-than-expected earnings.
The stock rose 3% to $38.23 a share in after-hours trading Thursday, after having gained 0.76% in regular trading hours.
One key takeaway: Uber Eats lost more money than expected, as the company continues to prioritize investment for future growth.
Ride-sharing is profitable, but for Uber’s total business to post a profit, Uber Eats must reach profitability.
Loss per share for the December quarter came in at 64 cents on a GAAP basis, a narrower loss than Wall Street’s expected 67 cents. Adjusted EBITDA loss was $615 million, better than last year’s $817 million and narrower than the expected loss of $703 million. Revenue was $4.1 billion, slightly ahead of analyst’s expectations of $4.07 billion. Total gross bookings was $18.1 billion, beating estimates of $18.01 billion and growing 28% year-over-year.
“2019 was a transformational year for Uber and I’m gratified by our progress, steadily delivering against the commitments we’ve made to our shareholders on our path to profitability,” said CEO Dara Khosrowshahi. “We recognize that the era of growth at all costs is over. In a world where investors increasingly demand not just growth, but profitable growth, we are well-positioned to win through continuous innovation, excellent execution, and the unrivaled scale of our global platform.”
Uber Eats lost $461 million on an adjusted EBITDA basis, wider than Wall Street’s anticipation of a $356 million loss. Management said in the earnings release that investments in Eats in several markets drove the higher-than-expected loss.
Ridesharing EBITDA was $742 million, higher than some analyst’s expectations of just below $700 million.
Uber shares were up 20% for the year heading into earnings.