Friday, February 07, 2020

Uber revenue grows and animates investors despite loss

In recent months, app-order transportation company Uber has been challenging: showing investors that it can make a profit. On Thursday, 6, dara khosrowshahi's company showed that it failed to complete the task in the fourth quarter of 2019, recording a loss of $1.1 billion between October and December 2019. Despite this, the financial market did not lose expectations in the company, which recorded a 37% increase in its revenue in the period, compared to the same quarter of 2018. Analysts say the figures show that the company is on an interesting path – which led the company's shares to rise 4% after the market closes. Another factor that helped the company was the reduction of losses. In the previous two quarters, the company had posted a loss of $5 billion and $1.2 billion. In addition, it is important to consider that Uber's urban travel division is already profitable by itself – what affects the company's performance today is spending on the meal delivery service (UberEats), administrative costs and also research and development. Only Uber Eats, for example, lost $461 million in the period. "We recognize that the era of growth at all costs is over," Dara Khosrowshahi, Uber's chief executive, said in a statement. "I am pleased with our progress, firmly fulfilling the commitments we make with our shareholders on our way to profitability." In November last year, Khosrowshahi said the company's goal was to record profit in 2021. "Finally, Uber has shown a big step towards profitability," dan Ives, an analyst at broker Wedbush Securities, said in a statement to investors. "Dara and her employees show that profit and reduced losses with Uber Eats will focus on 2020 and beyond." The transportation app recorded revenue of $4.07 billion in the fourth quarter, higher than analysts' estimate, which was $4.06 billion – in the same period a year earlier, the company raised $2.9 billion. Most of Uber's revenue in the quarter came from the United States and Canada: the company raised $2.5 billion in the region. Latin America is Uber's second most important market, with $553 million in revenue. Travel The report shows that the company's revenue comes primarily from the ride-hailing service, which is available today in 700 cities around the world: the number of travel per app grew 28% in the quarter to more than 1.9 billion, and revenue grew 27 percent to more than $17% to more than $100 million. 3 billion. The company also said it now has about 111 million monthly active users worldwide. Uber was part of a group of Silicon Valley startups that opened capital last year, putting its business to market proof. In addition to financial difficulties, the company faces regulatory problems in several countries due to the type of partnership it maintains with its drivers.
O Estado de S.Paulo - 06/02/2020 News Item translated automatically
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