Uber Technologies Inc., in its first financial report as a public company, reported a $1.01 billion quarterly loss and posted first-quarter sales in line with its previously disclosed preliminary results.
The world’s biggest ride-hailing operator generated $2.76 billion in adjusted revenue in the first three months of the year, an increase of 14%.
Costs went up 35% in the quarter, as the company spent heavily in the run-up to its IPO earlier this month.
Growth of gross bookings, a key measure of what customers spend with Uber, is slowing. They totaled $14.7 billion in the quarter, an increase of 34%, compared with 37% in the fourth quarter. Uber said bookings grew 41% from a year before, after adjusting for currency fluctuations and excluding regions where the company no longer operates.
Uber revealed that revenue in Latin America fell 13% from a year before amid increased competition. Meanwhile, revenue grew by 26% in the U.S. and Canada.
The company's chief financial officer Nelson Chai said Uber would cut back on customer promotions and that marketing expenses as a percentage of revenue should decline in the second quarter. However, he called 2019 an “investment year.”
“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, he said.”
Uber and its main rival Lyft have both seen heavy interest from short sellers skeptical of their ability to build sustainable businesses.