The last months have been difficult for Uber. The brokerage company was made public only in May to see the stagnation of its stock market. Since then, three of the members of its board of directors have resigned, along with their chief operating officer and marketing director. The company also laid off 400 employees.
Uber’s results for the second quarter, published Thursday, suggested that the situation was not improving much.
For the three-month period ending June 30, Uber recorded a worse than expected loss of $ 4.32 per share. That’s more than the loss forecast of $ 3.19 per share studied by Yahoo. In total, this is a loss of $ 5.2 billion and the largest loss ever recorded by Uber. Uber attributed more than half of this loss to compensation expenses based on shares paid to employees after their initial public offering.
Revenues increased 14% over the previous year, but were also below expectations, reaching $ 3.17 billion. Analysts had forecast $ 3.36 billion. Uber shares fell by more than 12% in off-schedule transactions.
“The balance between profits and financial results is more an art than a science,” Uber CEO Dara Khosrowshahi said in a call for results after operations closed on Thursday.
He added that he trusted the company’s strength, especially due to the increasing number of users and reservations.
Uber’s monthly active customers reached 100 million people for the first time in the second quarter, providing information on how often consumers use the company’s services. Uber did not explain how its active user growth was affected by the proposed cuts.
Internal reworkings ravaged Uber. Ryan Graves, the first employee and the first CEO of Uber, left the company’s board of directors in May. Two other board members, businesswoman Arianna Huffington and venture capitalist Matt Cohler, resigned last month. Less than a week later, Uber announced the dismissal of 400 employees from its marketing department.
The Lyft competitor has also had some difficult months. He also saw the prices of his shares and the departure of his chief of operations fall. However, in its second-quarter earnings, published Wednesday, Lyft reported a 72 percent increase in revenue from the previous year. He still had losses of $ 644.2 million.
Uber and Lyft have had difficulties as listed companies. Some analysts have questioned whether the use of surveillance is a viable business model. Both companies said in their statements that they had never been profitable and that they did not expect this to happen soon.
This could be more than a simple return that affects investor confidence in Uber. Drivers, for example, are not satisfied with low wages and longer hours in the past two years. Two days before the Uber IPO, drivers had organized world events against the disparity of wealth between them and the company’s employees.