Uber Growth Hits a Speed Zone
Growth continues to slow at Uber Technologies (NYSE: UBER), and the world's leading ridesharing service isn't getting any closer to profitability. Uber posted its second-quarter results after Thursday's market close, and Wall Street's initial reaction was to eat into some of its headier gains from earlier in the trading day.
Uber's top-line results rose 14%, to $3.166 billion, for the three months ending in June, with adjusted net revenue growing at a more modest 12% clip. Its business is actually growing a lot faster than what those headline figures suggest, but the need to keep riders and, more importantly, drivers incentivized is eating into its take rate.
Investors aren't buying into Uber for its bottom-line showing, but once again, we see deficits widening. The net loss exploded to $5.2 billion, but the lion's share of that red ink came from a one-time stock-based compensation hit related to May's initial public offering (IPO). Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) deficit did more than double, to $656 million.
Quelle Fool.com
