Uber share price: 4 things we learnt from its Q1 results
Uber's Q1 results told investors four vital facts about the rideshare company.
Uber share price rose after its first ever earnings report since launching its initial public offering (IPO). Four main facts stood out in Uber’s Q1 earnings report.
Uber's Q1 results reveal the company still isn't profitable
Uber’s Q1 earnings report showed that the rideshare corporation still hasn’t turned a profit weeks after its much-hyped IPO debut. Uber’s net loss was $1.01 billion, far exceeding its 2018 net loss of $478 million. Chief executive officer (CEO), Dara Khosrowshahi, noted in a letter to employees that Uber’s losses could last for a prolonged time.
‘There are many versions of our future that are highly profitable and valuable, and there are of course some that are less so… Sentiment does not change overnight and I expect some tough public market times over the coming months', wrote Khosrowshahi.
Uber's Q1 profits show expansion beyond transportation
While Uber had major losses, the corporation’s excessive spending on its other ventures like Uber Eats paid off. The company’s food delivery division had Q1 revenue of $536 million, a surge of 89% from Q1 2018. Khosrowshahi noted that it would be beneficial to Uber if its food delivery's profits outpace the rideshare division's revenue.
‘Some folks believe that the food category can be larger than the ride category. If that’s true … that would be an enormous win for us,’ said Khosrowshahi.
Uber's Q1 revenue demonstrates rideshare dominance
Though Uber’s losses were large in its Q1 earnings report, Uber’s Q1 revenue of $3.10 billion surpassed expectations. Monthly active user numbers also increased from 70 million in 2018 to 93 million in 2019. Uber dominates 69% of the rideshare market in the US, while rival Lyft only has 29%.
Uber's Q1 revenue is expanding globally
Uber is an American corporation, but is popular around the globe. Uber’s Q1 revenue in Europe, Africa, and the Middle East grew 26% to $487 million. In Asia, revenue increased by 6% to $267 million. Khosrowshahi spoke about how he wants Uber to continue its worldwide dominance in the rideshare space.
‘Our story is simple. We’re the global player. Our job is to grow fast at scale and more efficiently for a long, long time,’ said Khosrowshahi.
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