Uber lost more than $5 billion in three months

(CNN) -- Even by Uber's standards, the company burned through a staggering amount of money in its most recent quarter.

Uber said Thursday that it lost $5.2 billion in the three months ending in June, fueled mostly by $3.9 billion in stock-based compensation expenses related to its public offering during the quarter.

Without those charges, however, the company still lost about $1.3 billion during the quarter, a roughly 50% spike from the year prior. The mounting losses come as Uber continues to invest in freight shipping, meal deliveries and offering discounts for its core ride-hailing business to attract new customers and compete with companies like Lyft.

Even as it invests aggressively, Uber's revenue growth continues to slow. The company posted revenue of $3.1 billion during the quarter, a 14% increase from the year prior — hardly the rocket ship growth that investors typically expect from newly public technology firms.

Uber's core ride-hailing business was all but flat. Revenue in this sector ticked up just 2% from the same quarter a year ago. Uber Eats, its meal delivery service, continues to be a bright spot, with revenue growing 72% from the prior year. But it accounted for only a modest percentage of Uber's overall business.

Shares of Uber fell by as much as 12% in after-hours trading Thursday following the disappointing earnings report. Uber's stock had rallied earlier on Thursday, ending the day up more than 8%, after rival Lyft updated its forecast for the year to indicate faster than expected revenue growth and narrower than expected losses.

Both Uber and Lyft remain below their respective IPO prices.

 

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