Feb 10, 2021 11:00 PM EST
Uber's stock dropped by more than 3% after the bell on Wednesday as the ride-hailing and sharing company delivered mixed fourth-quarter earnings results. The business was undoubtedly affected by the COVID-19 pandemic but it can also be described as slowly recovering.
At present however, the company is still losing about $1 billion a quarter on a GAAP basis.
One way to describe how Uber did against expectations is that "it could have been worse." The company made a loss of 54 cents per share, which is quite lower than the exected 56 cents loss per share. This is based on the data gathered from analysts surveyed by Refinitiv. On the other hand, it made $3.17 billion in revenue versus $3.58 billion expected per Refinitiv.
Overall, Uber lost $968 million on a GAAP basis during the quarter. While the loss is not a joke, it is actually an improvement from a year ago when losses reached as high as $1.1 billion, as reported by CNBC.
For all of 2020, Uber's net losses amounted to $6.77 billion. Again, the amount is quite staggering, but it can also described as 20% better from the losses of $8.51 billion in 2019.
READ MORE: Tesla Bitcoin Leak: Reddit Insider Comes Clean About Knowing Elon Musk's Cryptocurrency Investment
The same mixed results can be seen in how Uber's largest business segments performed in the fourth quarter of 2020. Mobility or gross books is down 50% from a year ago at $6.79 billion. On the other hand, Delivery (gross bookings) amounted to $10.05 billion, which is 130% higher from a year ago.
Even though delivery is apparently way ahead in gross bookings, the revenue Uber's core ride-hailing business is noticeably higher than delivery for the first time since the coronavirus pandemic broke out.
According to CEO Dara Khosrowshahi, Uber still sees "many many opportunities" in the mobility segment as one region after another recovers from the pandemic. A full-blown recovery is harder to say, for its mobility business, since the pandemic is quite unpredictable. Recovery is highly dependent on when cities open up again, he explained.
In August 2020, Uber acquired a marketplace tech company, Autocab, that links riders with local taxi operators. Khosrowshahi suggested that as travel and commuting starts to increase once more, taxis can certainly tap into the higher demand and Uber can benefit.
The CEO however, is worried that Uber might not have enough drivers to meet the anticipated increase in demand in the mobility segment as the pandemic gradually wanes.
Earlier this February, the company announced some plans to acquire on-demand alcohol delivery app Drizly. Reportedly, Uber will be incorporating or integrating Drizly Uber Eats, its food-delivery service. The official statement of the company has it that the deal was valued at $1.1 billion in stock and cash combined.
During the pandemic, there is no denying that Uber has relied on Uber Eats to stay afloat.
The food delivery segment saw revenue increase 224% to $1.4 billion in the fourth quarter compared to the year prior because families can no longer eat out while the pandemic rages.
READ MORE: Invite-Only, Facebook Alternative Clubhouse Banned in China After Brief, Uncensored Period
However, there are some simple steps that anyone can take which will help to improve their performance when it comes to trading foreign exchange markets. Here are ten small things that can make a big difference in your FX trading success.
o prevent significant losses, risk management expertise is essential. His adage, "Rule No. 1: Never lose money," has become a stock market classic. Never forget Rule No. 1; this is Rule No. 2. This practice is followed by even the most successful investor, Warren Buffett, who advises others to follow suit.
One of the significant advancements is shifting the payment operations for remote workers. If the compliances are not met, it may lead to severe legal complications. The owner and organization may be held labially separately. The remote working lifestyle continuously grows and is a testament to becoming an endless working mode. Today we discuss components for payroll for remote workers
BRG International Founder Matias Alem had recognized this fact for a few years. So he remodeled his real estate brokerage into something completely new to solve the problem for his jet-setting international client base.
Ryan Early, hailed as 'Farmer Ryan' among sustainable agriculture experts, is a busy man. He has a laundry list of companies to his name, including Blue-Green Ventures, the company behind the revolutionary product, Blue MagicTM, a non-toxic and eco-sustainable pest preventative product using his patented BiomeMax TM Pheromonal Replication Technology.
Investor, financier, and expert in both cryptocurrencies and blockchain technology, Joy Mbanugo is the go-to in the sector. She has vast experience and knowledge across tax services, auditing, business operations, financial analysis, capital markets, and other specializations.
When Nick Collins was just 14 years old, he started his first business, which included around-the-clock phone calls and numerous questions from his parents. In fact, he began building his stout portfolio in the seventh grade by doing web design, incorporating creative content with brand strategies and plugging in a then-fledgling tech Flash.
Barry Gabster is the founder of InitiateU and is a leading proponent of the marketing mailer revolution, having already taken his company to 10x growth in 2021, alone. In fact, the exponential growth has seen the company rise from $800K-$8.5M just on word-of-mouth referrals.
If you think that the micro accounts are useful only for beginners who may not be able to cope with the fast dynamics of changing quotes on trading platforms, then this is not so. Professionalism grows out of these cent accounts.