Ride-hail giant Uber lost more than $1 billion in its first quarter as a public company.
Though the eye-popping figure had been expected by investors, the company also confirmed Wall Street’s fears about slowing growth.
The cash-burning outfit gave investors no indication that profitability is in the foreseeable future — though Chief Executive Dara Khosrowshahi told German newspaper Handelsblatt earlier this week that profitability will come after the next year or two.
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.
Khosrowshahi said that the stock’s poor performance in its public debut should not be a cause for concern, and added that the company will grow more efficient as it continues to expand.
“It is ultimately just one moment in a much larger journey,” he said, adding: “Our teams are very, very motivated to prove Uber’s value to our shareholders.”
The San Francisco.-based company brought in $3.1 billion in revenue — at the high end of its expected range — beating Wall Street’s forecast $3.04 billion and representing a 20 percent year-over-year jump.
Also on the positive side, Uber mentioned decreasing competition from “the other player,” rival Lyft — which went public in March — noting that it “started to see signs of less aggressive pricing.”
Costs were up 35 percent in the quarter for Uber, thanks to discounts and promotions.
Uber said its global monthly active users rose to 93 million, from 91 million, at the end of the fourth quarter.
Lyft shares — which are down nearly 30 percent since its IPO — were up 2.3 percent in extended trading Thursday, at $56.10.
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