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Uber just can’t stay out of the news, can it? The ride-sharer posted Q1 results yesterday, and let’s just say it wasn’t pretty. For starters, the company posted a net loss of $2.9B, good for its largest loss in three quarters.
On an EPS basis, the loss works out to $1.70 per share. It did bring in revenue of $3.54B, which makes its loss even more impressive.
So, where’s the problem?
Well, Uber said that its ride-booking business fell 5% YoY, and was down 80% in April. Hey, it could be worse Uber, you could be a cruise line. CEO Dara Khosrowshahi said there’s reason to have faith. Those CEOs, always so positive.
Uber’s Chief Dispatcher (read: CEO) tempered worries by letting investors know that while it’s core business got a flat in a bad neighborhood, its UberEats product had itself a five-star quarter. Eats was up by more than 50% YoY, and brought the company $4.68B in sales. Khosrowshahi also said that ride-booking numbers have increased every week for the last three weeks. The news got investors all hot and bothered.
How much? Enough that even after reporting the company’s worst quarter in the last year, shares jumped 10% after-hours. DK going full spin zone probably didn’t hurt.
While investors are happy, you know who isn’t? The 3.7k employees the company sent packing earlier this week. Beyond just finding out that they’d lost their jobs as part of a cost-cutting effort, they also found out yesterday that Uber is leading an investment round for Lime Scooters worth $170M. “Seriously? You fired us for f*cking scooters?” – Uber’s former employees, probably. It’s worth noting that $2.1B of the $2.9B it lost this quarter were impairment charges from companies Uber has a stake in.
Uber’s had a long road to get to where it is today, from a company that hemorrhages money and has a toxic culture led by its tech bro CEO, to a company with a less toxic culture that loses money a little bit slower. It’s got a long way to go, but there’s hope for investors, if Dara and the UberEats numbers are to be trusted.
Water Cooler Talking Point(s)
💧 “I wonder what Uber’s ‘contractors-that-definitely-aren’t-employees have to say about this quarter’s results?” (AJ, The Water Coolest HQ)
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