Uber stock hits a new all-time low as shares continue to slide following $5 billion Q2 loss

Shares of Uber closed at $33.96 Wednesday, their lowest price since the stock’s debut in May. Uber shares continued to slide for the fourth straight trading day following the company’s earnings whiff. Uber reported a net loss of $5.24 billion for its second quarter of 2019, blaming stock-based compensation. The company reported revenue of $3.17 billion for the quarter, missing analyst estimates of $3.36 billion, according to Refinitiv. Ultimately, the company listed its shares at a nondiluted va


Shares of Uber closed at $33.96 Wednesday, their lowest price since the stock’s debut in May. Uber shares continued to slide for the fourth straight trading day following the company’s earnings whiff. Uber reported a net loss of $5.24 billion for its second quarter of 2019, blaming stock-based compensation. The company reported revenue of $3.17 billion for the quarter, missing analyst estimates of $3.36 billion, according to Refinitiv. Ultimately, the company listed its shares at a nondiluted va
Uber stock hits a new all-time low as shares continue to slide following $5 billion Q2 loss Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: lauren feiner
Keywords: news, cnbc, companies, uber, reported, slide, valuation, continue, ubers, low, hits, q2, billion, stock, quarter, company, following, shares, loss, tusk


Uber stock hits a new all-time low as shares continue to slide following $5 billion Q2 loss

Shares of Uber closed at $33.96 Wednesday, their lowest price since the stock’s debut in May. Uber shares continued to slide for the fourth straight trading day following the company’s earnings whiff. It was the first time the shares fell below $36.

The stock was down 6.8% Wednesday, bringing its market cap to $57.6 billion, down more than $12 billion from its valuation at the end of its first trading day in May.

Uber reported a net loss of $5.24 billion for its second quarter of 2019, blaming stock-based compensation. But even excluding the compensation, Uber’s losses amounted to about $1.3 billion, about 30% worse than the previous quarter. The company reported revenue of $3.17 billion for the quarter, missing analyst estimates of $3.36 billion, according to Refinitiv.

Analysts had already expressed skepticism about Uber’s high valuation leading up to its IPO. The company reported an adjusted EBITDA loss of $1.85 billion in 2018 and showed slowing revenue growth in its S-1 filing, but Uber reportedly sought a valuation as high as $120 billion as it mulled its public debut. Ultimately, the company listed its shares at a nondiluted valuation of $75.46 billion.

While CEO Dara Khosrowshahi characterized the second-quarter loss as a “once-in-a-lifetime” hit in an interview with CNBC’s David Faber and Jim Cramer on Friday, investors are still uncertain of Uber’s path to profitibility.

On Monday, shortly before Uber shares hit their then-lowest closing price of $37, early investor Bradley Tusk told CNBC that the company needs to dominate in more businesses than its ride-hailing and delivery services to reach profitability.

“They’ve got to be that A-to-Z for transportation,” Tusk said. “Whether you’re getting yourself to A to B on a bike, scooter, or a car, bus, whether furniture being shipped on a truck, or a burrito from a messenger, they’ve got to be the default for all of that.”

— CNBC’s Annie Palmer contributed to this report.

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WATCH: Why Uber is losing money and what it will take to become profitable


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: lauren feiner
Keywords: news, cnbc, companies, uber, reported, slide, valuation, continue, ubers, low, hits, q2, billion, stock, quarter, company, following, shares, loss, tusk


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Uber CEO: Massive losses from IPO were a once-in-a-lifetime hit

Uber CEO Dara Khosrowshahi called the company’s staggering $5.2 billion loss in the second quarter a “once-in-a-lifetime” hit as he tries to steer it toward profitability. “The founder mentality, that edge, that fire, is absolutely something we want to keep going at the company,” Khosrowshahi said. For the quarter, Uber posted a loss of $4.72 per share, which was larger than the loss of $3.12 per share estimated by analysts. While stock-related compensation costs are common among Silicon Valley


Uber CEO Dara Khosrowshahi called the company’s staggering $5.2 billion loss in the second quarter a “once-in-a-lifetime” hit as he tries to steer it toward profitability. “The founder mentality, that edge, that fire, is absolutely something we want to keep going at the company,” Khosrowshahi said. For the quarter, Uber posted a loss of $4.72 per share, which was larger than the loss of $3.12 per share estimated by analysts. While stock-related compensation costs are common among Silicon Valley
Uber CEO: Massive losses from IPO were a once-in-a-lifetime hit Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-09  Authors: annie palmer
Keywords: news, cnbc, companies, think, hit, quarter, massive, ceo, losses, company, loss, uber, business, ipo, khosrowshahi, ubers, billion, onceinalifetime


Uber CEO: Massive losses from IPO were a once-in-a-lifetime hit

Uber CEO Dara Khosrowshahi called the company’s staggering $5.2 billion loss in the second quarter a “once-in-a-lifetime” hit as he tries to steer it toward profitability.

In an interview with CNBC’s David Faber and Jim Cramer on Friday, Khosrowshahi shed light on the company’s second-quarter earnings report, in which Uber fell short of analysts’ expectations for both the top and bottom lines. The stock plunged as much as 5.9% in afternoon trading.

Khosrowshahi said he’s targeting 30% revenue growth in the back-half of the year, compared to net revenue growth of 26% in the second quarter. He added that spending will increase, but it will decline as a percentage of revenue.

“I think we’ve got very good visibility into our own business as far as the business model and how we can tweak it and how we can drive more efficiency,” Khosrowshahi said. “We think we can not only survive, but we can really thrive in this business.”

Khosrowshahi pushed back on fears that Uber has lost its “founder mentality” after ousted CEO Travis Kalanick, known for his growth-at-all-costs approach, left the company in 2017.

“The founder mentality, that edge, that fire, is absolutely something we want to keep going at the company,” Khosrowshahi said. “It’s a big part of what made the company successful and I absolutely think it will play a big part in making the company successful moving forward.”

For the quarter, Uber posted a loss of $4.72 per share, which was larger than the loss of $3.12 per share estimated by analysts. Revenue came in light at $3.17 billion compared to consensus estimates of $3.36 billion.

The company reported a staggering $5.2 billion loss during the quarter, which was largely owed to stock-based compensation. While stock-related compensation costs are common among Silicon Valley companies, Uber’s losses were bigger than total 2018 losses for all but three S&P 500 companies.

Khosrowshahi continues to face increasing pressure from investors that he can get Uber on track to profitability. That’s likely to be a tough task, given that Uber has long subsidized its rides. He also addressed the stock’s lackluster performance since Uber’s IPO.

“We’ve got to do a better job as far as telling our story to the markets,” Khosrowshahi said. “Long term, the market will take care of itself, and I think that’s what we’re focused on right now.”

He said the company was recently forced to increase prices in New York City due to stricter regulations from the city’s Taxi and Limousine Commission. As a result, Uber has had to “restrict the number of drivers” that can enter the marketplace.

“I think it’s a tragedy. I think that when you put into law laws that are not market driven, you wind up helping special interests and hurting other people,” Khosrowshahi said. “The neighborhoods that need transit the most… our business is suffering there and that’s just not fair.”

In an interview with CNBC’s Deirdre Bosa on Thursday, Khosrowshahi said 2019 will be the company’s “peak investment year” and that losses should come down in 2020 and 2021. He added that he’s certain “the business will eventually be a break even and profitable business.”

Excluding stock-based compensation, Uber’s losses were approximately $1.3 billion, or about 30% worse than the prior quarter.


Company: cnbc, Activity: cnbc, Date: 2019-08-09  Authors: annie palmer
Keywords: news, cnbc, companies, think, hit, quarter, massive, ceo, losses, company, loss, uber, business, ipo, khosrowshahi, ubers, billion, onceinalifetime


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Uber’s Q2 losses were bigger than total 2018 losses for all but three S&P 500 companies

But it seems even bigger when you consider this — only three companies in the S&P 500 lost that much money in all of 2018. Excluding that expense, Uber’s losses were around $1.3 billion, or roughly 30% wider than the prior period. Snap recorded a $2 billion expense in its first post-IPO earnings report in 2017. Among S&P 500 companies, only 26 lost money in 2018. The only three to lose more for the year than Uber lost in the second quarter were General Electric ($20.6 billion), Kraft Heinz ($10.


But it seems even bigger when you consider this — only three companies in the S&P 500 lost that much money in all of 2018. Excluding that expense, Uber’s losses were around $1.3 billion, or roughly 30% wider than the prior period. Snap recorded a $2 billion expense in its first post-IPO earnings report in 2017. Among S&P 500 companies, only 26 lost money in 2018. The only three to lose more for the year than Uber lost in the second quarter were General Electric ($20.6 billion), Kraft Heinz ($10.
Uber’s Q2 losses were bigger than total 2018 losses for all but three S&P 500 companies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-08  Authors: ari levy
Keywords: news, cnbc, companies, expense, total, ubers, uber, losses, stock, 500, billion, lost, bigger, sp, companies, 2018, heinz, quarter, q2, kraft


Uber's Q2 losses were bigger than total 2018 losses for all but three S&P 500 companies

Dara Khosrowshahi, chief executive officer of Uber Technologies Inc., speaks on a webcast during the company’s initial public offering (IPO) on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 10, 2019.

Uber’s $5.2 billion second-quarter loss is big on its face.

But it seems even bigger when you consider this — only three companies in the S&P 500 lost that much money in all of 2018.

The ride-hailing company, which held its stock market debut in May, attributed most of its quarterly deficit to stock-based compensation. Excluding that expense, Uber’s losses were around $1.3 billion, or roughly 30% wider than the prior period.

High stock-related compensation costs are normal for Silicon Valley companies. Equity packages are the price of luring talented engineers who could otherwise command bigger salaries at more established companies. Eventually those options and restricted stock units vest, and the companies then have to account for the costs.

Snap recorded a $2 billion expense in its first post-IPO earnings report in 2017. On Wednesday, Lyft reported a $296.6 million stock-compensation expense following an $894 million cost in the previous quarter.

Stil, Uber’s quarterly loss is eye-popping for investors who are used to companies being well on their way to sustainable profits by the time they reach such a lofty market cap. As of Thursday’s close, Uber was worth $67.3 billion, which would make it the 84th most valuable company in the S&P 500, if it were in the index.

Uber shares dropped about 6% in extended trading after reporting disappointing revenue and a wider-than-expected loss.

“We think that 2019 will be our peak investment year and we think that 2020, 2021, you’ll see losses come down,” CEO Dara Khosrowshahi told CNBC.

Among S&P 500 companies, only 26 lost money in 2018. The only three to lose more for the year than Uber lost in the second quarter were General Electric ($20.6 billion), Kraft Heinz ($10.2 billion) and Newell Brands ($6.8 billion).

GE’s massive deficit was the result of a $23 billion charge taken in the third quarter last year for its struggling power business. At the same time of that announcement in October, the company abruptly removed CEO John Flannery after only a year on the job.

In the fourth quarter, Kraft Heinz slashed the value of its Kraft and Oscar Mayer brands by $15.4 billion, leading to a 27% plunge in the stock price in one day. The performance was even a shock to Warren Buffett, who admitted in February that “we overpaid for Kraft.” In 2013, he teamed with Brazilian private equity firm 3G to acquire Heinz and two years later helped merge it with Kraft.


Company: cnbc, Activity: cnbc, Date: 2019-08-08  Authors: ari levy
Keywords: news, cnbc, companies, expense, total, ubers, uber, losses, stock, 500, billion, lost, bigger, sp, companies, 2018, heinz, quarter, q2, kraft


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Uber loses two more board members: Arianna Huffington and Matt Cohler

Two members of Uber’s board of directors are resigning, the company announced Wednesday. Thrive Global CEO Arianna Huffington and Matt Cohler, general partner at venture capital firm Benchmark, informed Uber of their plans to resign this week, the company disclosed in filings with the Securities and Exchange Commission. Cohler replaced Benchmark partner Bill Gurley in 2017 as the company was mired in a number of scandals. Huffington and Cohler follow the departure of Uber’s first employee Ryan G


Two members of Uber’s board of directors are resigning, the company announced Wednesday. Thrive Global CEO Arianna Huffington and Matt Cohler, general partner at venture capital firm Benchmark, informed Uber of their plans to resign this week, the company disclosed in filings with the Securities and Exchange Commission. Cohler replaced Benchmark partner Bill Gurley in 2017 as the company was mired in a number of scandals. Huffington and Cohler follow the departure of Uber’s first employee Ryan G
Uber loses two more board members: Arianna Huffington and Matt Cohler Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: lauren feiner
Keywords: news, cnbc, companies, resign, benchmark, work, company, board, arianna, longer, huffington, loses, members, statement, matt, cohler, uber, ubers


Uber loses two more board members: Arianna Huffington and Matt Cohler

Two members of Uber’s board of directors are resigning, the company announced Wednesday. Shares of Uber were down nearly half a percent during after hours trading.

Thrive Global CEO Arianna Huffington and Matt Cohler, general partner at venture capital firm Benchmark, informed Uber of their plans to resign this week, the company disclosed in filings with the Securities and Exchange Commission. Both resignations are effective the day of the announcement. This means Benchmark, once Uber’s largest outside investor, no longer has a seat on the company’s board. Cohler replaced Benchmark partner Bill Gurley in 2017 as the company was mired in a number of scandals.

Huffington and Cohler follow the departure of Uber’s first employee Ryan Graves, who left the board in May, shortly after Uber’s IPO.

Huffington said in a statement filed with the SEC that she no longer felt she could devote the time to being an Uber board member due to the expansion of her own company.

“Given Thrive’s growth, it has become clear to me that I will no longer be able to give my Uber board duties the attention they deserve, so I will be stepping down,” she said. “It has been an unforgettable three-year ride, and I’m grateful to have been able to work alongside my fellow board members and witness the incredible work of thousands of Uber employees around the world.”

Cohler did not offer a specific reason for his departure, but said in a statement included in the filing, “My partners at Benchmark and I have had the privilege of being part of the Uber journey since the Series A nearly a decade ago. I’m thrilled with the company’s position, excited for the road ahead, and extend my deepest thanks to all of Uber’s past and present employees, directors, drivers, and customers.”

Uber said both departures were not the result of any disagreements. Cohler told Uber of his intentions to resign on Tuesday, and Huffington informed the company on Wednesday, according to the filings.

WATCH: Why Uber is losing money and what it will take to become profitable


Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: lauren feiner
Keywords: news, cnbc, companies, resign, benchmark, work, company, board, arianna, longer, huffington, loses, members, statement, matt, cohler, uber, ubers


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Uber’s European rival Bolt launches in London

Uber’s European rival Bolt is now taking it on in the streets of London. The Estonian ride-hailing company formerly known as Taxify announced its launch in the U.K.’s capital city Tuesday. It joins a growing list of start-ups trying to take market share from Uber in the London metropolitan area. Villig, who founded the company in 2013, said more than 20,000 drivers have already signed up with Bolt ahead of Tuesday’s launch. There were an estimated 87,900 private hire vehicles licensed in London


Uber’s European rival Bolt is now taking it on in the streets of London. The Estonian ride-hailing company formerly known as Taxify announced its launch in the U.K.’s capital city Tuesday. It joins a growing list of start-ups trying to take market share from Uber in the London metropolitan area. Villig, who founded the company in 2013, said more than 20,000 drivers have already signed up with Bolt ahead of Tuesday’s launch. There were an estimated 87,900 private hire vehicles licensed in London
Uber’s European rival Bolt launches in London Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: elizabeth schulze
Keywords: news, cnbc, companies, launch, european, bolt, villig, ridehailing, uber, vehicles, company, london, ubers, uks, rival, launches


Uber's European rival Bolt launches in London

Uber’s European rival Bolt is now taking it on in the streets of London.

The Estonian ride-hailing company formerly known as Taxify announced its launch in the U.K.’s capital city Tuesday. It joins a growing list of start-ups trying to take market share from Uber in the London metropolitan area.

“We see this as quite a monumental thing for both the company and the ride-hailing industry as a whole,” Bolt CEO Markus Villig told CNBC in an interview. “London is one of the biggest, most profitable markets for Uber globally and one where it didn’t have a serious competitor.”

Villig, who founded the company in 2013, said more than 20,000 drivers have already signed up with Bolt ahead of Tuesday’s launch. There were an estimated 87,900 private hire vehicles licensed in London as of March 2018, according to the Department for Transport.


Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: elizabeth schulze
Keywords: news, cnbc, companies, launch, european, bolt, villig, ridehailing, uber, vehicles, company, london, ubers, uks, rival, launches


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Buy Uber because it will be a leader in the coming ‘offline era,’ Raymond James says

Uber is strongly positioned for the coming “offline era” of internet, according to Raymond James. “In contrast to traditional Internet companies, Uber is a digital app powering offline behavior,” he said. However, he said, internet businesses are increasingly shifting to offline from online, and Uber has capitalized on that early, which creates a better long term strategy. Raymond James initiated coverage of the stock with an outperform rating and a target price of $50. Uber’s stock is down abou


Uber is strongly positioned for the coming “offline era” of internet, according to Raymond James. “In contrast to traditional Internet companies, Uber is a digital app powering offline behavior,” he said. However, he said, internet businesses are increasingly shifting to offline from online, and Uber has capitalized on that early, which creates a better long term strategy. Raymond James initiated coverage of the stock with an outperform rating and a target price of $50. Uber’s stock is down abou
Buy Uber because it will be a leader in the coming ‘offline era,’ Raymond James says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, coming, era, ridehailing, raymond, internet, james, buy, growth, uber, offline, leader, stock, ubers, transportation, york


Buy Uber because it will be a leader in the coming 'offline era,' Raymond James says

Dara Khosrowshahi, chief executive officer of Uber Technologies Inc., speaks on a webcast during the company’s initial public offering (IPO) on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 10, 2019.

Uber is strongly positioned for the coming “offline era” of internet, according to Raymond James.

With 93 million monthly active platform customers globally using Uber’s “offline app” for transportation and food delivery, the ride-hailing company can attain 25% revenue growth over the next five years, Raymond James analyst Justin Patterson said in a note to clients Wednesday.

“In contrast to traditional Internet companies, Uber is a digital app powering offline behavior,” he said. “This elevates cost in the early years, but arguably creates a more defensible long-term position.”

Investors’ biggest concern since Uber’s initial public offering last month is its path to profitability. Patterson recognizes that the company’s shares have been pressured on these “reasonable concerns.” However, he said, internet businesses are increasingly shifting to offline from online, and Uber has capitalized on that early, which creates a better long term strategy.

Patterson said Uber’s end-market penetration is less than 1% globally.

“Considering Amazon and Booking sustained 20%+ growth in markets that were more penetrated, we see ample room for outsized growth, ” he said, referring to the parent company of booking.com, Kayak and OpenTable.

Patterson said that with Uber’s market share across transportation, delivery and freight, its growth will accelerate and the competition will “rationalize” over the next 12 months. Investors currently consider the ride-hailing industry to be a duopoly with rival Lyft.

Raymond James initiated coverage of the stock with an outperform rating and a target price of $50.

Uber’s stock is down about 5% since its market debut at the New York Stock Exchange last month. The stock has rallied over 5% in the first days of June.


Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, coming, era, ridehailing, raymond, internet, james, buy, growth, uber, offline, leader, stock, ubers, transportation, york


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Lyft rises after Uber’s CEO shows optimism about competition on the company’s first earnings call

Uber Technologies CEO Dara Khosrowshahi during the opening bell at the New York Stock Exchange during the company’s IPO, May 10, 2019. Shares of Lyft rose Friday morning after Uber CEO Dara Khosrowshahi echoed its executives’ optimism around competition in the ride-sharing market. Shares of Lyft rose 5.1% Friday as Uber’s stock rose 1.5%. Lyft’s stock gained more than $800 million in value, rising to a market cap of $16.7 billion compared with Uber’s $67.8 billion. Analysts appear to be buying i


Uber Technologies CEO Dara Khosrowshahi during the opening bell at the New York Stock Exchange during the company’s IPO, May 10, 2019. Shares of Lyft rose Friday morning after Uber CEO Dara Khosrowshahi echoed its executives’ optimism around competition in the ride-sharing market. Shares of Lyft rose 5.1% Friday as Uber’s stock rose 1.5%. Lyft’s stock gained more than $800 million in value, rising to a market cap of $16.7 billion compared with Uber’s $67.8 billion. Analysts appear to be buying i
Lyft rises after Uber’s CEO shows optimism about competition on the company’s first earnings call Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: lauren feiner
Keywords: news, cnbc, companies, analysts, companys, competition, lyft, shows, stock, earnings, khosrowshahi, rises, market, rose, ceo, brand, ubers, optimism, uber, lyfts


Lyft rises after Uber's CEO shows optimism about competition on the company's first earnings call

Uber Technologies CEO Dara Khosrowshahi during the opening bell at the New York Stock Exchange during the company’s IPO, May 10, 2019.

Shares of Lyft rose Friday morning after Uber CEO Dara Khosrowshahi echoed its executives’ optimism around competition in the ride-sharing market. Shares of Lyft rose 5.1% Friday as Uber’s stock rose 1.5%. Lyft’s stock gained more than $800 million in value, rising to a market cap of $16.7 billion compared with Uber’s $67.8 billion.

During a call with analysts following Uber’s first quarterly earnings report, Khosrowshahi said he agreed with Lyft executives who said earlier this month they believed the market was becoming more rational.

“I think that competing on brand and product is — call it a healthier mode of competition than just throwing money at a challenge,” Khosrowshahi said.

Both companies have incurred large losses due in part to providing hefty incentives to lure both riders and drivers to their platforms. In the last quarter alone, Uber reported a net loss of $1.01 billion. Lyft reported an adjusted per-share loss of $9.02.

On Lyft’s earnings call earlier in May, President John Zimmer said that in his time since founding the company, “you can see that as a percentage of revenue that this is the most rational the market has been.” That makes consumers’ choice between two strong competitors lean more on brand than price, he said.

Analysts appear to be buying in to the claims, though they maintained a wait-and-see attitude on Uber’s stock.

“While there is no guarantee that this will last, we believe that over the next 12 months both will focus more on competing via service innovations (micro mobility, loyalty etc), which should provide a significant tailwind to Uber’s unit economics,” Atlantic Equities analysts wrote in a note Friday, upgrading its rating on Uber from neutral to overweight.

DA Davidson analysts wrote Friday that “a more rational promotional environment is certainly a key positive, but only time will tell whether LYFT’s healthier brand is a sustainable competitive advantage and/or whether UBER’s relatively larger scale will drive meaningfully better Rider/Driver experiences.” The firm maintained a neutral rating on the stock and lowered its price target from $53 to $46.

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Watch: Uber just announced its first-ever quarterly earnings—Here’s what three experts are watching now


Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: lauren feiner
Keywords: news, cnbc, companies, analysts, companys, competition, lyft, shows, stock, earnings, khosrowshahi, rises, market, rose, ceo, brand, ubers, optimism, uber, lyfts


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Uber’s first earnings reports: Investors are looking for signs it can become profitable

Unlike Amazon, Uber’s revenue growth has already begun to slow. The company blames competitive pressure in ride sharing and the rise of its costly delivery business, Uber Eats, for the deceleration. In an interview with CNBC’s Andrew Ross Sorkin that aired on Uber’s IPO day, Khosrowshahi defended the comparison to Amazon. While profitability may still be a ways away for Uber, analysts are looking for signs of growth in Uber’s gross bookings and take rate. The take rate for Uber Eats declined fro


Unlike Amazon, Uber’s revenue growth has already begun to slow. The company blames competitive pressure in ride sharing and the rise of its costly delivery business, Uber Eats, for the deceleration. In an interview with CNBC’s Andrew Ross Sorkin that aired on Uber’s IPO day, Khosrowshahi defended the comparison to Amazon. While profitability may still be a ways away for Uber, analysts are looking for signs of growth in Uber’s gross bookings and take rate. The take rate for Uber Eats declined fro
Uber’s first earnings reports: Investors are looking for signs it can become profitable Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-30  Authors: lauren feiner
Keywords: news, cnbc, companies, earnings, rate, reports, ipo, khosrowshahi, signs, uber, looking, eats, revenue, investors, ubers, quarter, company, profitable, billion


Uber's first earnings reports: Investors are looking for signs it can become profitable

Dara Khosrowshahi, chief executive officer of Uber Technologies Inc., speaks on a webcast during the company’s initial public offering (IPO) on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 10, 2019.

As Uber prepares to report its quarterly earnings for the first time as a public company, investors and analysts will be looking for signals to answer one question: Will Uber ever become profitable?

The ride-hailing company reports earnings after Thursday’s closing bell. It has already projected a net loss of at least $1 billion for the first quarter of 2019 in an unaudited report released in a filing with the Securities and Exchange Commission ahead of its IPO. That compares with the net income of $3.75 billion it reported for the same period last year. Uber estimated revenue for the quarter would range from $3.04 billion to $3.10 billion, compared with the $2.58 billion in revenue the company reported in the same quarter of last year.

Uber’s large losses had many analysts questioning its sky-high early valuation ahead of its IPO. The company had been seeking a valuation as high as $120 billion, according to early reports, as it recorded an adjusted EBITDA loss of $1.85 billion in 2018. Uber tempered expectations by pricing its IPO at $45 per share, giving it a market value of $75.46 billion at its IPO on a nondiluted basis. The stock still sank 7.6% on its first day of trading to a market cap of $69.7 billion.

Uber would argue its losses are the result of heavy investment in its core ride-sharing market and newer initiatives including meal delivery and freight. CEO Dara Khosrowshahi is fond of likening Uber’s trajectory to Amazon’s early days on the public market. Like Uber, Amazon debuted with losses in 1997, but its stock price has since ballooned and its net income grew to $3.6 billion in the last quarter. Unlike Amazon, Uber’s revenue growth has already begun to slow.

The company blames competitive pressure in ride sharing and the rise of its costly delivery business, Uber Eats, for the deceleration. Competition from services like Lyft has lowered Uber’s take rate, which it defines as gross bookings divided by adjusted net revenue.

Meanwhile, its delivery service Uber Eats is growing, but it requires the company to pay not only the drivers, like in its ride-hailing business, but also its restaurant partners. Uber said in its IPO filing it has “onboarded large-volume restaurants at a lower service fee and in geographies with greater competition, such as the United States and India.” As a result, it expects the take rate to continue to decline in the near term.

Uber’s core platform contribution margin, the amount of profit it makes from its core platform business divided by revenue, turned negative in the fourth quarter of 2018. The decline indicates Uber is actually on a path to become less profitable as it gains more customers and brings in more total revenue.

In an interview with CNBC’s Andrew Ross Sorkin that aired on Uber’s IPO day, Khosrowshahi defended the comparison to Amazon.

“It’s a fair comparison at the wrong time,” he said. “So a lot of private companies now are holding off much longer before they go public. We are much bigger, much more mature as a company as we go public, and if you do look at the growth rates, our audience is growing 33% on a year on year basis, transactions are growing 36%. To be able to grow transactions 36% on a $50 billion base is pretty incredible, and we hope to keep it going.”

Still, Khosrowshahi would not commit to 2019 being the company’s peak year for losses, as Lyft’s executives had days earlier on their earnings call.

“That would be our intention, although there can’t be any guarantee,” Khosrowshahi said.

While profitability may still be a ways away for Uber, analysts are looking for signs of growth in Uber’s gross bookings and take rate. Uber has substantially grown its gross bookings, defined as the full dollar value of an Uber service, for both ride sharing and Eats. Gross bookings for Uber Eats more than doubled from $3 billion in 2017 to $7.9 billion in 2018, according to the company.

But while its ride-sharing take rate saw a small uptick from 21% in 2017 to 22% in 2018, Uber Eats’ take rate has been driven down due to greater driver incentives and expansions to new areas, according to the company. The take rate for Uber Eats declined from 12% in 2017 to 10% in 2018.

Lyft executives offered a glimmer of hope for the overall ride-hailing industry on their first earnings call. President John Zimmer told analysts “this is the most rational the market has been,” meaning ride hailing companies may be able to keep drivers on their platforms with lower incentives — a key cost driver for both Lyft and Uber.

In a note Tuesday, Wedbush Securities analysts outlined some of the positive signs they are looking for in the report.

“While investors have been expecting take rate compression as competition pushes irrationality and rider incentives in the near-term, we expect a focus on a path to improvement and accelerating revenue growth over the remainder of 2019 and into 2020,” they wrote.

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Company: cnbc, Activity: cnbc, Date: 2019-05-30  Authors: lauren feiner
Keywords: news, cnbc, companies, earnings, rate, reports, ipo, khosrowshahi, signs, uber, looking, eats, revenue, investors, ubers, quarter, company, profitable, billion


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Uber stumbles in trading debut

Uber began trading on the New York Stock Exchange Friday at $42 per share, below its IPO price of $45. Toward the beginning of its trading, Uber’s market cap was around $74 billion. Uber is now the second ride-hailing company to hit the U.S. public market, following Lyft’s debut in March. As Uber began its first day of trading, Lyft’s stock was down more than 2%. Lyft’s poor performance on the public market has somewhat dampened expectations over Uber’s IPO, as Lyft’s stock has plummeted more th


Uber began trading on the New York Stock Exchange Friday at $42 per share, below its IPO price of $45. Toward the beginning of its trading, Uber’s market cap was around $74 billion. Uber is now the second ride-hailing company to hit the U.S. public market, following Lyft’s debut in March. As Uber began its first day of trading, Lyft’s stock was down more than 2%. Lyft’s poor performance on the public market has somewhat dampened expectations over Uber’s IPO, as Lyft’s stock has plummeted more th
Uber stumbles in trading debut Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-10  Authors: lauren feiner, cnbc, erin black
Keywords: news, cnbc, companies, uber, stock, ipo, ubers, trading, public, market, company, stumbles, lyfts, debut, khosrowshahi


Uber stumbles in trading debut

Uber began trading on the New York Stock Exchange Friday at $42 per share, below its IPO price of $45. The stock was down more than 1% toward the start of trading.

Uber priced its shares Thursday night toward the low end of its target range of $44 to $50 per share. That gave Uber a valuation of $75.46 billion at its IPO on a non-diluted basis, still well below the $120 billion it was reportedly seeking when news first broke it was preparing to go public. Toward the beginning of its trading, Uber’s market cap was around $74 billion.

The stock began trading in the face of difficult market conditions Friday. The Dow Jones Industrial Average fell about 300 points after President Donald Trump said on Twitter “there is absolutely no need to rush” trade talks with China.

Uber’s Chief Financial Officer Nelson Chai said “this was a tough day” on the market in an interview on CNBC after the stock began trading. Asked about whether executives considered delaying the IPO as a result of the conditions, Chai said, “I don’t think that we’re smart enough to try to judge the market … We weren’t optimizing to have the best opening price or the opening day. We’re really looking for how the stock continues to trade over time and that’s what we’re building for.”

Uber is now the second ride-hailing company to hit the U.S. public market, following Lyft’s debut in March. Both companies have been heavily scrutinized for continuing to post big losses, but many investors are also intrigued by the entrance of the new industry onto the public exchange. As Uber began its first day of trading, Lyft’s stock was down more than 2%.

Lyft’s poor performance on the public market has somewhat dampened expectations over Uber’s IPO, as Lyft’s stock has plummeted more than 20% from its IPO price. Uber CEO Dara Khosrowshahi said in an interview with CNBC’s Andrew Ross Sorkin on “Squawk Box” Friday that Lyft’s performance “led us to be a bit more conservative.”

But analysts saw a promising path to profitability in Lyft’s first quarterly earnings report after the company showed strong growth in active ridership and revenue per active rider. Executives said on the earnings call Tuesday the ride-hailing market overall is beginning to become more rational, limiting the need for driver incentives.

Like Lyft, Khosrowshahi said 2019 should be the company’s peak year for losses. Uber has been comparing itself to Amazon in its pitches to investors, which also infamously was not profitable at its IPO. While some analysts are dubious of the comparison, they also recognize investors’ fear of missing out on the next big thing. In his CNBC interview, Khosrowshahi said he stands behind the comparison despite the differences between the two companies at their IPO.

“It’s a fair comparison at the wrong time,” Khosrowshahi said. “So a lot of private companies now are holding off much longer before they go public. We are much bigger, much more mature as a company as we go public, and if you do look at the growth rates, our audience is growing 33% on a year on year basis, transactions are growing 36%. To be able to grow transactions 36% on a $50 billion base is pretty incredible, and we hope to keep it going.”

Khosrowshahi will be personally incentivized to keep up the value of the stock. If Khosrowshahi can keep Uber’s valuation above $120 billion for 90 consecutive days once it goes public, Khosrowshahi will win net stock bonuses topping $100 million.

Even with shares priced toward the low end of its target range, Khosrowshahi is unconcerned with reaching those goals.

“I wasn’t expecting it any time short term,” he told CNBC. “I’m here to stay. I’m here to build a big company. That compensation term is not about a single day, it’s about what value you create over 10 years, and over 10 years, absolutely I expect to get there.”

One person who was missing from the dais at Uber’s debut was its co-founder and former CEO Travis Kalanick. Kalanick, who was ousted from the company after accusations that he helped foster a hostile and inappropriate environment at the company, will be nearby with his father at Uber’s start of trading on the floor of the NYSE.

Correction: A previous version of this article misstated the value of Uber CEO Dara Khosrowshahi’s net stock bonuses if he keeps Uber’s valuation above $120 billion for 90 consecutive days.

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Watch: Why Uber is losing money and what it will take to become profitable


Company: cnbc, Activity: cnbc, Date: 2019-05-10  Authors: lauren feiner, cnbc, erin black
Keywords: news, cnbc, companies, uber, stock, ipo, ubers, trading, public, market, company, stumbles, lyfts, debut, khosrowshahi


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