Categories Earnings

Uber Technologies likely to report weak Q3 earnings on Nov. 4

Uber Technologies Inc. (NYSE: UBER) is set to report its third-quarter earnings results on Monday, November 4, after the market closes. The results will be weighed down by cost pressure, which has been increasing more-than-expected due to driver incentives and investments in the business.

The company has been struggling to carry the top-line growth to the bottom line due to mounting expenses. Also, concerns have been mounting about the profitability and growth in the present times as the company is operating in industries that have exponential growth in the future.

Uber Technologies (UBER) stock tumbles after missing Q2 estimates

Uber will continue to incur losses in the near term as a result of expected substantial increases in operating expenses, due to its investments in the daily running of the business. The company has been facing hurdles about the introduction of new products such as UberPOOL that generates lower gross bookings per trip or a lower take rate instead of value addition.

The gross bookings are an indication of the scale of Uber’s current platform, which ultimately impacts revenue. The company generates substantially all of its revenue from fees paid by drivers and restaurants for use of its platform. At the end of the second quarter of 2019, Uber had 99 million active users on its platforms compared to 57 million in the second quarter of 2017.

Analysts expect the company to report a loss of $0.81 per share on revenue of $3.69 billion for the third quarter. For the second quarter, the ridesharing firm reported a wider loss as excess driver incentives drove costs and expenses higher. The top line increased by 14% year-over-year helped by strong contributions from Uber Eats and other bets.

Read: Lyft Q3 earnings review

The company’s stock has remained a concern for investors as the shares have fallen over 24% since it went public in May. The stock has climbed to reach $47.08 on June 28 but taken the downward path to reach the lowest of $28.31 on October 2.

We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top