Uber has released its second quarterly report for 2019. The corporate giant has reported revenues of $3.16 billion against losses of $5.2 billion while marking the slowest-ever revenue growth for 2019’s second quarter.
This has been the largest loss the company has faced since it started disclosing limited financial data in 2017. About $3.9 billion went to the stock-based compensation to the company’s employers after its Initial Public Offering (IPO).
Apart from this one-time expense, Uber has lost another $1.3 billion, which is nearly twice $878 million it lost last year. With the costs excluded, the company projected a loss of $3 billion-$3.2 billion in 2019. The revenue increased to $3.1 billion this year, marking a 14 percent increase from last year. That has been the slowest quarterly growth rate ever recorded by the company.
Uber’s chief financial officer (CFO), Nelson Chai, said in the report,
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.
He said in an interview that there have been positives as well. Uber’s bookings from rides and deliveries have risen by 31 percent this year. The company has gained more customers, boasting over 100 million monthly active riders for the first time.
However, the dismal results have taken a toll on the company’s stocks. While the company was projected to value at about $120 billion at its IPO this year, it actually plunged below its $45 offering price on the first day of trading. It has just briefly risen above this price since then.
In an attempt to reduce costs, the company has announced to lay off one-third of its 1200-person marketing department.
The full revenue report can be viewed here.