San Francisco-based ride hailing company, Uber, has been having a rough year so far, but it may finally have something to celebrate.
On Wednesday, Uber reported a 16% increase in quarterly bookings and a smaller loss than the previous quarter.
The company’s Q2 financial reports state the company lost $645 million in the second quarter, 9 percent less than the $708 million loss in the first quarter and 35 percent less than the $991 million loss in the fourth quarter of last year. Adjusted net revenue, which reflects Uber’s cut of ride fares, rose to $1.75 billion from $1.5 billion in the first quarter.
As a private company, Uber is not required to publicly report its financial results, but earlier this year it began offering a glimpse of its performance by disclosing certain numbers. The reports stated that the company’s gross ride bookings for the second quarter reached $8.7 billion, up from $7.5 billion in the first quarter. The number of global trips on its service increased 150% over the previous year.
The continued growth in ridership suggests Uber’s core business is slowly building its pace and starting to accelerate. The company, however, declined to present profitability reports.
While this is some good news for Uber, some investors have eyed Uber’s $68 billion valuation with skepticism. Four mutual fund investors disclosed this week that they have marked down the value of their Uber shares by as much as 15%.
Jan Dawson, chief analyst at Jackdaw Research, cautioned that Uber’s reporting is selective and excludes parts of the business’s financial model that may show the company in a less favorable light. “There’s clearly growth in the numbers reported by Uber here,” Dawson said, but they should be taken “with a big pinch of salt.”
While the company has recently hired a new chief executive, it lacks a chief financial officer which is highly unusual for a company of its size. In the meantime, Uber has promoted some of the top executives running the company in the interim to vice president. The new title simply formalizes the roles these young executives took on when Kalanick resigned.