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Significant Revenue And Earnings Growth Reported By Uber But Also Reports Quarterly Loss


02/07/2020


Significant Revenue And Earnings Growth Reported By Uber But Also Reports Quarterly Loss
A massive 37 per cent growth in revenues was reported for the fourth quarter of 2019 by the United States based ride-hailing company Uber Technologies, Inc. even though it continued to post quarterly losses.
 
The company also reported a growth in net earnings during the quarter while also bringing down the loss compared to the quarter the same period a year ago.
 
Uber reported revenues of $4.07 billion for the fourth quarter ended on December 31 compared to revenue of $2.97 billion for the comparable quarter a year ago.
 
The growth in the net income of the company exceeded the growth in revenues with a 41 per cent year on year jump at $3.73 billion dollars for the quarter compared to net income of $2.6 billion for the same quarter a year ago, Uber said.
 
The core business of ride hailing was the primary driver for the growth with the company’s gross booking increasing by 28 per cent year on year to touch $18.13 billion, said the San Francisco-based ride-sharing company.
 
Despite the growth in net income, the company reported a loss of $ 1.1 billion for the fourth quarter, but lowered down the quarterly losses compared to the previous quarter when it reported a loss of $1.2 billion. In comparison, the company had posted a loss of $887 million in the corresponding quarter a year ago.
 
“2019 was a transformational year for Uber, and I'm gratified by our progress, steadily delivering against the commitments we've made to our shareholders on our path to profitability,” said Uber CEO Dara Khosrowshahi.
 
For Uber, the era of growth at all costs is no more, Khosrowshahi said.
 
“In a world where investors increasingly demand not just growth, but profitable growth, we are well-positioned to win through continuous innovation, excellent execution and the unrivaled scale of our global platform,” the CEO said.
 
Uber aims to become a profitable company by the fourth quarter of 2020 which would be a year ahead of a previous forecast made by the company, Khosrowshahi told investors during an earnings call over the quarterly results.
 
(Source:www.xinhuanet.com)