Uber Technologies investors are being taken for another wild ride today after the company’s second-quarter earnings showed it lost a lot more money than analysts were anticipating.
The ride-hailing giant posted a loss per share of $4.72, compared to a consensus estimate of $3.12 cited by CNBC. Revenue for the quarter was $3.17 billion versus estimates of $3.36 billion.
Shares collapsed more than 12% in after-hours trading. The stock had generally been performing well all week, closing at $42.97 today after opening at $39.35 on Monday. But today’s report showed increasing net losses, which jumped to $5.24 billion, partially due to stock-based compensation.
In a statement, Uber’s CEO, Dara Khosrowshahi, tried to spin the results in the most positive light possible. “Our platform strategy continues to deliver strong results, with Trips up 35% and Gross Bookings up 37% in constant currency, compared to the second quarter of last year,” he said. “In July, the Uber platform reached over 100 million Monthly Active Platform Consumers for the first time, as we become a more and more integral part of everyday life in cities around the world.”
Uber’s losses are seen as a critical metric for the company as it tries to mitigate increasing skepticism about its business model. Its rival Lyft, by contrast, posted better-than-expected losses in its earnings report yesterday. Lyft also issued strong guidance, saying it could achieve profitability sooner than expected.
You can check out Uber’s full report here.