Uber (NYSE: UBER) reported losing more than $1 billion in the first three months of 2019 in its first quarterly report since going public. The company reported a net loss of $1.01 billion, or $2.26 per share, in the first quarter ended March 31, compared with net income of $3.75 billion, or $1.84 per share, a year earlier. Analysts expected a loss of around $1.46 per share for the quarter.
Uber’s revenue for quarter was up to $3.09 billion, a 20 percent increase from the previous year and better than the $3.08 billion analysts had forecast. Results were helped by a 34 percent year-over-year increase in gross bookings and a near-doubling of revenue for Uber Eats, its meal delivery service. Uber stock rose 4 percent in after-hours trading following the earnings report.
Just a few months ago, Uber was the world’s most highly valued private company. The company showed a remarkable ability to raise record sums of capital from venture capitalists for most of the past decade. Prior to its initial public offering (IPO), Uber had raised $14.9 billion and was worth $76 billion.
Uber went public earlier this month and opened on its first day of trading at $42 a share, which was below its IPO price of $45. Uber stock was trading around the $40 mark ahead of the earnings report, roughly 11 percent below its IPO price. Wall Street investors have expressed concerns about its slowing revenue growth and track record of significant losses. Chief Executive Dara Khosrowshahi will have to convince investors Uber can turn a profit if the share price is to recover.