Uber Technologies’ (NYSE: UBER) fourth quarter 2019 loss widened to $1.1 billion from $887 million in the fourth quarter of 2018. Loss per share narrowed to $0.64 from $1.98 in Q4 2018, helped by an increase in weighted average shares outstanding. GAAP revenue rose 37% year-over-year to $4.07 billion.
The market expected the ride-sharing firm to post a loss of $0.67 per share in Q4 2019 on revenue of $4.06 billion. UBER stock was trading up about 1% immediately after the earnings announcement.
Adjusted net revenue grew 41% to $3.73 billion. Gross bookings grew 28% or 30% on a constant currency basis to $18.13 billion, with Rides and Eats growing 20% and 73% year-over-year, respectively, on a constant currency basis.
“Our revenue growth continued to accelerate in Q4, with adjusted net revenue up 43% year-over-year in constant currency. We consistently outperformed our adjusted EBITDA targets in 2019, including in the fourth quarter. Our focus on disciplined capital allocation is part and parcel to achieving our financial goals, and the recent sale of our India Eats business further demonstrates that commitment,” said CFO Nelson Chai.
Also read: Lyft Q4 2019 earnings preview
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Last month, Uber sold its food delivery business in India to Zomato in an all-stock transaction, which gave Uber 9.99% ownership in Zomato. In early January, Uber announced the it completed the acquisition of Careem, which it acquired for $3.1 billion. With the closing of the deal, Uber has acquired Careem’s mobility, delivery, and payments businesses across the greater Middle East region, with major markets including Egypt, Jordan, Saudi Arabia, and the United Arab Emirates.
Uber’s rival Lyft Inc. (NASDAQ: LYFT) will be reporting its fourth-quarter 2019 earnings results on Tuesday, February 11. Higher costs are expected to hurt Lyft’s bottom line in Q4.
Majority of the analysts have a “Buy” or “Hold” rating for Uber stock with an average price target of $45.08. Uber has been in the bullish mode during the recent months, which is evident from the fact that the stock had gained 35% in the past three months time frame.