Uber fell short of analysts' expectations for both the top and bottom lines in its second-quarter earnings report.
on Thursday. The stock plunged as much as 7.8% in premarket trading on Friday.
The company posted a loss of $4.72 per share, which was larger than the loss of $3.12 per share estimated by analysts. Revenue came in light at $3.17 billion compared to consensus estimates of $3.36 billion. The company reported a staggering $5.2 billion loss during the quarter, which was largely owed to stock-based compensation. While stock-related compensation costs are common among Silicon Valley companies, Uber's losseson Thursday, CEO Dara Khosrowshahi said 2019 will be the company's "peak investment year" and that losses should come down in 2020 and 2021. He added that he's certain "the business will eventually be a break even and profitable business.
Excluding stock-based compensation, Uber's losses were approximately $1.3 billion, or about 30% worse than the prior quarter. Khosrowshahi continues to face increased pressure from investors that he can get Uber on track to profitability. That's likely to be a tough task, given that Uber has long subsidized its rides.
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