Uber reports a net loss of over $1 billion in the third quarter of 2019

American multinational ridesharing company, Uber Technologies Inc., reported its quarterly earnings on Monday. Despite beating the analysts’ estimate for revenue in the third quarter, the company’s stock was seen trading 5% lower later on Monday. The weekly loss for Uber, as per the sources, is currently at 9.85% so far.

Uber Beats Refinitiv’s Estimate For Revenue In The Third Quarter

Refinitiv, a well-renowned global financial markets’ data provider, forecasted $3.69 billion in revenue for Uber in Q3 of 2019. Beating the estimate, Uber printed a significantly greater $3.81 billion in revenue. Refinitiv had also estimated 81 cents of loss per share for Uber in the third quarter. The actual figure, however, came out to be better than expected at 68 cents per share.

In 2018’s third quarter, Uber had posted a loss of $986 million in total. In comparison, net loss in the third quarter of 2019 increased sharply at $1.16 billion. The significant increase which includes stock-based compensation that resulted in $401 million in loss, has been highlighted as the primary contributing factor that continues to keep Uber’s stock under pressure.

On the contrary, however, Dara Khosrowshahi, the Chief Executive Officer of Uber Technologies Inc., expressed his optimism and predicted that the company will be back in profit by the year 2021. He further added that the business is focusing on improving the adjusted net revenue in Q4 of 2019. As per the full-year guidance, the company’s forecast for adjusted net loss in Q4 has been confined to $2.8 to $2.9 billion.

Other Noticeable Figures In Uber’s Quarterly Report

Other noticeable figures included in Uber’s quarterly report includes $16.47 billion in gross bookings that missed the Refinitiv’s estimate of $16.7 billion. Monthly Active Platform Customers (MPACs) for Uber have been reported at 103 million in the third quarter. Refinitiv had predicted a greater 104 million MPACs for Uber in 2019’s Q3. Uber’s take rate, however, was noted at 21.5% that was better than the expected 20.2%, as per Refinitiv.

At $645 million, Uber Eats’ revenue gained by 64% (year-over-year). It was reported at $595 million in the same quarter of last year. Uber Freight marked a growth of 78% year over year while rides grew by 19% in the Q3 of 2019 as compared to the figures for last year.

Uber’s stock opened at $31.45 on Monday. Having traded mostly below the opening level, the stock closed on Tuesday at $29.02. The Wednesday’s session, as per the stock market analysts, is expected to advance the losses further.