Share prices tanked for Uber on Thursday during after-hours trading following the rideshare giant’s release of its quarterly earnings report, which revealed misses on both revenue and earnings per share.
That tumble marked a sharp contrast from earlier in the day when Uber ($UBER) shares had been trading upwards of 8 percent.
Uber posted $2.87 billion in revenues, compared to the $3.36 billion that analysts had expected. The company also reported $4.72 in losses per share, more than a dollar off of analysts’ expectations of just $3.12.
In a press release CEO Dara Khosrowshahi touted a rise in trips and gross bookings, and in a letter to investors, executives pointed to other positives, including the expansion of its new higher-end UberX service, Uber Comfort, further progress in the development of self-driving technology, and growing customer acquisition in markets like Argentina and Germany.
The company also highlighted the expansion of Uber Eats, which remains one of the most promising areas of growth for the rideshare company's businesses. That service saw 72 percent growth in revenues over the same quarter last year.
The number of consumers that used Uber’s delivery service each month is also up 140 percent, year-over-year.
“That business is extremely competitive, and I don’t see any indication of rationalization whatsoever,” said John Jannarone, the editor of IPO-Edge, though he warned that the company has not yet differentiated itself from other food delivery services.
Thursday’s massive tumble follows Uber’s announcement late last month that the company would be laying off more than a third of its marketing team as part of a restructuring effort, as well as the exits of several top executives back in June.
While both Lyft ($LYFT) and Uber had bumpy starts following their public offerings earlier this year, the former saw its share prices level off following a generally positive earnings report release on Wednesday.