Shares of Uber (UBER), the biggest ride-hailing service in the world, traded lower late on Thursday after the firm reported slower-than-expected growth in sales while incurring a bigger loss than the market had anticipated in the second quarter.
Even though revenue jumped by 14% to $3.17 billion during the three months that ended June 30, from $2.77 billion a year ago, it still lagged the $3.39 billion average analyst estimate compiled by Capital IQ. Group turnover increased as the number of Monthly Active Platform Consumers surged by just under a third to 99 million, pushing up the number of trips by 35% year-over-year, the San Francisco-based company said in a statement.
Uber’s net loss more than doubled to $4.72 per share, from $2.01 per share a year earlier, missing the forecast of $3.19 per share, which implies the market had anticipated a loss of more than 50% in the quarter just ended.
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Losses widened much more than expected as the company, which unveiled its first production car capable of self-driving with Volvo’s newest XC90 sports utility vehicle, pushed up its research and development expense to $3.06 billion, from $365 million in the prior-year period.
This follows an increase in unrestricted cash and cash equivalents, which at the end of the second quarter, a period in which Uber had its initial public offering, stood at $11.7 billion. A year ago, unrestricted cash and cash equivalents stood at $5.7 billion. In July, the firm received $1.0 billion from an investment by Toyota, DENSO, and SoftBank to support its foray into autonomous public transportation.
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