What led Uber Technologies Inc (NYSE: UBER) stock fall

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Uber Technologies Inc (NYSE: UBER) stock lost over 6.4% on 9th August, 2019 (As of 12:16 pm GMT-4; Source: Google finance) as the company posted lower than expected results for the second quarter of FY 19. Q2 ’19 adjusted EBITDA loss came in at $656 million, which is a big improvement versus Q1 and handily beating the own internal plan due to strong execution of the teams across the businesses. The competitive environment and the position in the ridesharing space continue to be stable to improve.

UBER in the second quarter of FY 19 has reported the adjusted loss per share of $4.72, missing the analysts’ estimates for the adjusted loss per share of $2.03, according to the Analysts surveyed by FactSet. The company had reported the adjusted revenue of $3.17 billion in the second quarter of FY 19, missing the analysts’ estimates for revenue of $3.3 billion.

The company has reported 99 million monthly active platform consumers in the second quarter. FactSet expected 98.3 million. Uber Eats, the company’s food-delivery service, grew 72% to $595 million from the year-ago quarter. Gross bookings during the quarter jumped 31% to $15.76 billion, vs. $15.8 billion forecast by FactSet. This is due to continued solid growth in Ridesharing gross bookings growth across all our regions led by the U.S. and Latin America. Eats gross bookings growth was driven by strong year-over-year growth in U.S. and Canada and APAC despite the significant amount of capital that is poured into space.

Moreover, the adjusted net revenue, or ANR, excluding the driver appreciation award, was $3.2 billion, which was up 26% on a constant currency basis. Core platform ANR excluding the driver appreciation reward was $3 billion or up 22% on a constant currency basis. Core Ridesharing ANR was up 7% year-over-year and Eats ANR was up 56% year-over-year. And they were up 20% and 60% year-over-year, respectively, on a constant currency basis. Our core platform ANR as a percentage of gross bookings was 19% versus 21% in Q2 of 2018 primarily due to Eats, which has a lower take rate than Ridesharing growing as a larger percentage of core mix and the year-over-year increase in user ridesharing incentives particularly in the U.S. and Latin America.

Additionally, for 2019 gross bookings, the company expects constant currency growth of 31% to 35% year-over-year, which translates to an estimated range of $65 billion to $67 billion. The Eats market will continue to be competitive as competitors have raised funds investment growth in this fast-growing category.

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