Not only big losses, what really worries the market is Uber's disappointing revenue growth. With the latest financial report, Uber wa...
Not only big losses, what really worries the market is Uber's disappointing revenue growth.
With the latest financial report, Uber was unable to reassure investors about the potential for growth as well as its ability to turn losses into profits. This car-sharing company has just reported a disappointing second-quarter revenue. Including the largest net loss so far, up to 5.24 billion USD.
The main cause of the huge loss came from the IPO in May because Uber had to pay a lot of costs to shareholders. Loss after adjustment (not including interest expenses, taxes and other costs): The more commonly used targets for car companies have more than doubled, to $ 656 million.
However, it is still lower than the forecast of US $ 979 million that analysts had earlier suggested.
But what really worries the market is Uber's disappointing revenue growth. Revenue was adjusted up 12% compared to 1 year ago. That is the lowest increase in company history. The San Francisco-based company generated $ 2.87 billion in revenue in the second quarter, lower than forecast.
Last week CEO Dara Khosrowshahi announced that Uber will cut 400 employees in marketing. This makes investors more worried about the growth of the company. And although he thinks the market is easier to breathe, he still predicts Uber will lose $ 3-3.2 billion this year. "2019 is the year that we invest the most. You will see a loss in 2020, 2021".
Uber's rival Lyft has just released a report showing losses and revenue are beyond expectations. Currently the second largest car app in the US, Lyft claims the price war with Uber is cooling down and the company will record a loss of 2019 lower than 2018. Khosrowshahi also affirmed.
After the information was published, Uber shares fell 6%.
Mr. Nerd
