We recently covered Uber and some of the headwinds they are facing. Since this research was released, few to none of the headwinds have been adequately addressed and the share price has fallen 9% from $45. Uber is expected to release its quarterly earnings after market close today, but what should we expect to see?
Like many tech giants eager to publicly list, Uber has been running massive losses. Analysts from FactSet are expecting an adjusted net loss of $1.08 billion and revenue of $2.98 billion after the bell today. The consensus from Wallstreet appears to be coming in at a $1.26 loss per share as Bloomberg has stated. The story gets a different spin from Uber who has communicated in its filings with the SEC that it anticipates a net loss in the ball park of $1 billion to $1.1 billion for the quarter. This filing also reveals their anticipated revenue to be roughly $3 billion to $3.1 billion, a climb from $2.6 billion when looking at the quarter from a year ago.
Why The Loss?
Uber has stated its losses are due to their investment in various opportunities as discussed in our previous article. The company intends to position itself in the autonomous space and other emerging opportunities. While this may prove beneficial to Uber in a long term lens, the data strongly suggests it will point short term financials toward significant continued losses. Interested parties should pay attention to the Uber Investor Relations Page for their press release and link to conference call after the close of the markets on May 30th.
For the complete analysis of Ubers IPO, please read our piece: Will Uber Make You Money in the Stock Market?
I/we have no position in any of the stock(s) mentioned.