FILE - In this May 10, 2019, file photo the statue of Fearless Girl stands in front of the New York Stock Exchange before Uber holds its initial public offering. Uber reports financial results Monday, Nov. 4. (AP Photo/Mark Lennihan, File)

Uber's revenue grows but its losses mount in third quarter

November 04, 2019 - 4:30 pm

NEW YORK (AP) — Uber picked up the pace of its revenue growth in the third quarter, but the ride-hailing heavyweight is still losing vast sums of money.

The San Francisco company said Monday it racked up revenue of $3.81 billion in the third quarter, 30% more than the same time last year.

But it lost $1.16 billion in the quarter, extending its streak of losses. The loss included $401 million in stock-based compensation related to its initial public offering.

The loss amounted to 68 cents a share and was wider than the $986 million shortfall in the same period last year.

The per share loss in the latest quarter, however, was smaller than what Wall Street had expected. Analysts were forecasting a loss of 82 cents a share, according to FactSet.

Its revenue also topped expectations for $3.63 billion in the quarter.

Uber convinced more people to use its array of products. The number of monthly active consumers across all its platforms grew to 103 million, up 26% from the same time last year.

Last month, executives at Lyft said they expect the rival ride-hailing company to become profitable in the fourth quarter of 2021. Uber CEO Dara Khosrowshahi said Monday the company expects to be profitable for the full year 2021.

Both Uber and Lyft are also facing potentially higher costs for paying drivers. In September, California passed a law requiring ride-hailing drivers to be classified as employees, which could entitle them to minimum wage, benefits and workers compensation. In response, Uber and Lyft proposed a ballot initiative aiming to exempt their companies from the new law.

Some analysts are concerned that a deluge of Uber stock will flood the market later this week when a lockup period expires, allowing major shareholders, including company executives and investors, to sell their shares.

Uber's stock price, closed Monday at $31.08, has lost nearly a third of its value since its initial public offering in May.

The stock was down about 4% in after-hours trading following the earnings report.

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