Uber Technologies Inc (NYSE:UBER) posted a massive loss in its second quarter and saw revenue fall short of Wall Street expectations as growth at its core ride-hailing business slowed.
In after-hours news on Thursday, the NYSE-listed firm reported a 2Q net loss of $5.2 billion, up from a deficit of $878 million a year earlier, reflecting $3.9 billion of stock-based compensation expenses related to its IPO earlier this year. Analysts had expected around a $3.3billion 2Q loss.
The company said its quarterly revenue growth slowed to 14%, as ride-hailing revenue only rose by 2% to $2.3 billion, although its food delivery unit, Uber Eats saw revenue jump by 72%.
Uber’s total revenue of $3.17 billion fell short of the consensus estimate for $3.36 billion, and its costs rose by 147% to $8.65 billion in the quarter, including a sharp jump in spending for research and development.
Gross bookings - the total value of car rides, scooter and bicycle trips, food deliveries and other services before payments to drivers, restaurants and other expenses - rose by 31% to $15.76 billion, a touch below expectations for $15.80 billion.
But in after-hours trading on Thursday, Uber shares dropped over 5%, while Lyft shares shed 0.5%.