Uber just reported massive losses that were larger than Wall Street expected - and the stock is tanking
- Uber on Thursday reported second-quarter earnings that missed Wall Street expectations.
- The ride-hailing giant lost $4.72 per share on revenues of $3.17 billion.
- A big chunk of Uber's massive, $5.24 billion loss was due to stock-based compensation from its IPO earlier this year.
Uber on Thursday reported second-quarter losses that were larger than Wall Street's expectations. The stock was down as much as 12% in after-hours trading.
Here are the important numbers:
- Revenue: $3.17 billion versus
- Earnings per share: $-4.72 versus $-3.23 expected
- Net loss: $5.24 billion, in-line with estimates
A major chunk of those losses, $3.9 billion, are from stock-based compensation for employees related to the company's initial public offering in May. It's a typical expense for companies who go public, and Uber previously warned in regulatory filings that this large expense would be occurring, so it likely isn't a surprise for investors.
In other efforts to stem its cash burn, Uber recently laid off 400 marketing employees at the end of July. Those savings, which mostly affected brand marketing and weren't limited to any one geographic area, won't be seen until next quarter.
"While we will continue to invest aggressively in growth, we also want it to be healthy growth, and this quarter we made good progress in that direction," chief financial officer Nelson Chai said in a press release.
Shares of Uber fell dramatically, as much as 12%, in after-hours trading following the earnings report. The stock has struggled to remain above its first trading price since the May IPO, but got a major boost on Thursday following Lyft's earnings report on Wednesday afternoon.
This story is developing. Check back for updates...
More Uber news:
- Uber marketing employees describe this week's 'bloodbath' when the company laid off 400 employees in more than a dozen countries this week
- Uber and Lyft drivers reveal the scariest situations they've ever encountered
- Read the pitch deck that Uber founder Garrett Camp created for the ride-hailing giant back in 2008 - before the company became the $120 billion giant it is today
