- Uber’s fourth quarter losses were smaller than Wall Street expected, as the company continues to grow.
- The company also said it plans to hit profitability by the end of 2020, sooner than previously expected.
- Shares of Uber soared as much as 10% following the new profitability timeline.
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Uber plans to turn a profit by the end of 2020, sooner than previously expected, the company said Thursday, sending its stock price soaring as much as 10% in late trading.
Here are the important figures for the fourth quarter of 2019:
- Adjusted revenue: $US3.73 billion, in line with expectations
- Loss per share: $US0.64 versus an expected $US0.65
- Adjusted net loss: $US615 million versus an expected $US713 million
“2019 was a transformational year for Uber and I’m gratified by our progress, steadily delivering against the commitments we’ve made to our shareholders on our path to profitability,” chief executive Dara Khosrowshahi said in a press release.
Uber Eats continued to be the star of the show, with revenue from the food delivery unit growing 73% over last year to $US734 million. In an effort to curb some losses, Uber sold its India Eats business to local competitor Zomato for a nearly 10% stake in the business worth $US250 million. It also stopped delivering in South Korea. Uber expects the first quarter of 2020 to be “peak investment” in its Eats business.
Freight, one of the newest entrants to Uber’s balance sheet, more than doubled its revenue thanks to a new web portal that launched in the third quarter.
The company has taken steps to curb its spending habits in recent months, including at least two major rounds of layoffs. It’s not clear how those might affect overall headcount though, as Uber staffs up new offices in Chicago and Dallas.
“We recognise that the era of growth at all costs is over,” Khosrowshahi said in the press release. “In a world where investors increasingly demand not just growth, but profitable growth, we are well-positioned to win through continuous innovation, excellent execution, and the unrivalled scale of our global platform.”
Wall Street analysts seemed to be pleased with Uber’s results.
“Dara & Co. finally are showing that profitability and a rationalized Eats business will be the focus in 2020 and beyond,” Daniel Ives, an analyst at Wedbush, said in a note to clients Thursday evening.