Uber has reported a loss of $1.16 billion during the third quarter but remains positive due to a 30% revenue growth during the same period.
The ride-hailing company Uber reported the $1.16 billion loss during the quarter, which included $401 million in stock-based compensation expenses related to its initial public offering (IPO) in May while its revenue growth was at 30%, posting $3.8 billion for the quarter.
During the second quarter, the company posted a massive loss of $5.2 billion, of which $3.9 billion was related to the IPO. During the third quarter of 2018, Uber also posted a loss of $986 million. News of the losses pushed down the company's stock by around 4%Â in after-hours trading.
Losses and achieving profitability
Uber chief executive officer (CEO) Dara Khosrowshahi said on a conference call with analysts that the company aims to achieve adjusted EBITDA profitability, or profitability excluding certain costs, in 2021. He assured: "We've got a road-map ahead of us."
Khosrowshahi pointed out: "This company grew very fast — and in the early years, the most important factor was speed to market. ... There wasn't a lot of focus on 'how do you make sure you work efficiently?'"
He argued that at the time, it was "absolutely the right set of priorities" but currently, he said: "Our priorities are changing."
Bright spot in revenue growth
Despite the losses, Uber posted a 30% revenue growth during the quarter year-over-year, while it posted only 12% growth in the second quarter.
Khosrowshahi claims that the company is "seeing more predictability around our rides business, although there are competitive flare ups. The teams are just executing better. Competition is a way of life," adding that he likes "where our margins are headed in that environment."
Aside from its rides business, Uber's newer business lines are growing the fastest, with sales from its meal delivery service Uber Eats increasing by 64% from a year earlier. Meanwhile, revenue from Uber Freight surged by a whopping 78%.
