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Uber reveals a billion-dollar Q1 loss ahead of its IPO roadshow

Uber reveals a billion-dollar Q1 loss ahead of its IPO roadshow
[Photos: Barna Bartis/Unsplash; Pepi Stojanovski/Unsplash]

As it prepares for its initial public offering, Uber has set its share price range of $44-$50 per share, allowing it to raise around $10 billion if it reaches the high end of its range. But how much enthusiasm will it pull with investors?

In an updated filing, Uber revealed a $1 billion loss in the first quarter. As we’ve written previously, Uber took down a $1.8 billion loss in 2018. Which is to say, this company doesn’t look like it will be profitable anytime soon.

Luckily, CEO Dara Khosrowshahi has a knack for making companies steadily profitable, or at least that’s what he did at Expedia. How he’ll do that is anyone’s guess. Uber could look to more tightly control driver-related costs, which are a big expenditure for the company. Unfortunately, drivers are already unhappy with the service and seeking to negotiate better working conditions if not employee status.

What will any of this mean for its road show? Certainly, Lyft’s IPO debut at $86 per share and its precipitous drop to $57.26 (price per share at time of reporting) will tamper the fervor. But investors are eager for a public offering (especially one this big), and lots of rich people have money riding on Uber’s success. Just wait for that pop.

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