Uber’s share price is rising in US after-hours trading after its first ever earnings report mostly fell in line with financial analysts' expectations.
Uber launched its initial public offering (IPO) with a valuation of $82 billion and shares at $45. However, the rideshare corporation’s stock has been underperforming since its IPO debut. Uber lost $1.01 billion in Q1 and matched Wall Street’s prediction of a $1.01 billion loss for the company. Uber’s Q1 revenue was $3.10 billion, slightly exceeding the projected $3.04 billion. The ridesharing app’s monthly active platform users rose to 93 million, an increase of 33%.
Uber earnings:key figures
Net loss $1.01 billion
Revenue $3.10 billion
Chief executive officer (CEO), Dara Khosrowshahi, spoke about Uber's Q1 earnings report.
‘In the first quarter, engagement across our platform was higher than ever, with an average of 17 million trips per day and an annualised gross bookings run-rate of $59 billion', said Khosrowshahi.
‘Our global reach continues to be an important differentiator, and we maintained leadership of the ridesharing category in every region we serve,’ added Khosrowshahi.
Chief financial officer (CFO), Nelson Chai, also touted Uber's Q1 results despite the large losses in a statement.
'Our Q1 2019 results were at or near the high end of the ranges we shared last month in our IPO prospectus,' said Chai.
Uber’s Q1 earnings report was similar to Lyft’s Q1 results. Lyft also had major losses, but better-than-expected revenue in its first earnings report.
Chai noted that Uber will continue to invest in global expansion.
‘Our investments remain focused on global platform expansion and long-term product and technology differentiation, but we will not hesitate to invest to defend our market position globally,’ said Chai.
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