Uber reports a net loss of SEK 50.3 billion for the second quarter of the year. The largest part of the loss is attributable to the company's IPO this year.

“So far, almost everything is below expectations,” says Ygal Arounian, an analyst at Wedbush, about the company's report.

Uber's revenue did increase by 14 percent, to $3.2 billion, but analysts had expected a slightly larger increase than that. The disappointment was reflected in US after-hours trading, as the stock fell sharply after the announcement, then recovered slightly to minus six percent.

The majority of the loss consists of share-based compensation linked to the company's IPO earlier this year. Research and development costs also rose sharply during the quarter.

The revenue increase is attributed to the food delivery service Uber Eats, where revenue rose 72 percent.

The quarterly report shows that the value of Uber's services has increased in line with expectations and the number of users has increased, but the company is keeping less money per ride. Passengers spent 20 percent more money on rides, but Uber's revenue from them only increased by four percent.

Source: TT