What’s Driving Uber’s Q2 Into the Ground

Uber Technologies, Inc. (NYSE: UBER) released second-quarter financial results after markets closed Wednesday. The company said that it had a net loss of $4.72 per share and $3.17 billion in revenue, compared with consensus estimates that called for a net loss of $3.19 per share and $3.36 billion in revenue. The same period from last year had a net loss of $2.01 per share and $2.77 billion in revenue.

During the quarter, gross bookings increased 31% year over year to $15.76 billion, up 37% in constant currency. Monthly Active Platform Consumers (MAPCs) increased by 30% to 99 million, up from 76 million.

Also, the total number of trips increased 30% year over year to 1.68 billion; in the same period last year, Uber reported 1.24 billion trips.

Uber Eats MAPCs grew over 140% year-over-year. Over 40% of new Eats consumers had never used Uber’s platform before. Uber Eats restaurant selection continued to improve, reaching 320,000 restaurant partners at the end of the quarter.

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The company did not offer any guidance in the report. However, consensus estimates are calling for a net loss of $0.91 per share and $3.64 billion in revenue for the coming quarter.

Dara Khosrowshahi, CEO, commented:

Our platform strategy continues to deliver strong results, with Trips up 35% and Gross Bookings up 37% in constant currency, compared to the second quarter of last year. In July, the Uber platform reached over 100 million Monthly Active Platform Consumers for the first time, as we become a more and more integral part of everyday life in cities around the world.

Shares of Uber closed Thursday at $42.97, with a post-IPO range of $36.08 to $47.08. The consensus analyst price target is $52.10. Following the announcement, the stock was down 11% at $38.20 in the after-hours session.

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