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A Unicorn-Sized Loss For Uber, Down $1B In Its 1st Quarter As A Public Company

A Unicorn-Sized Loss For Uber, Down $1B In Its 1st Quarter As A Public Company

Uber
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Going public so far hasn’t worked out for Uber. The ride-sharing giant lost more than $1 billion in its first quarter as a public company.

Uber chief Dara Khosrowshahi told investors not to worry — and they seem to be listening. “Nonetheless, investors brushed off the loss and Uber shares climbed 2.5 percent, to $40.80, in after-hours trading as Khosrowshahi expressed confidence during an earnings call. Shares are still below their IPO price of $45,” The New York Post reported.

The San Francisco.-based company did beat Wall Street’s forecast by earning $3.1 billion in revenue, a 20 percent year-over-year jump. And Uber said its global monthly active users increased to 93 million, from 91 million, at the end of the fourth quarter.

Still, the whopping $1 billion loss was a shock.

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“Uber has traded below its IPO price in the three weeks since its rocky debut on The New York Stock Exchange. The company priced its IPO at $45 per share in early May, raising $8.1 billion in the process. The following morning, the business opened at a disappointing $42 a share, sending shockwaves through the tech ecosystem, which had predicted an IPO pop on par with Lyft’s, at least,” TechCrunch reported.

Khosrowshahi tried to present a positive side in a statement: “Earlier this month we took the important step of becoming a public company, and we are now focused on executing our strategy to become a one-stop shop for local transportation and commerce. In the first quarter, engagement across our platform was higher than ever, with an average of 17 million trips per day and an annualized gross bookings run-rate of $59 billion.”