Uber has reported a $1bn (£790m) loss in its first quarterly financial report as a public company, despite revenue rising by one-fifth.
The loss will not come as a surprise to investors in the ride-hailing giant, after it already predicted the figure in a filing with the US Securities and Exchange Commission (SEC) ahead of its float earlier this month.
Revenue came in at $3.1bn, up on the $2.58bn it reported this time last year and hitting the top of its estimates, while the $1bn loss was at the low end of predictions which stretched as far as $1.11bn prior to the results.
Uber’s turnover growth has stalled in recent quarters as a result of increased competition, as well as investing in gaining new restaurants on its Uber Eats food delivery service.
But the fact that it has hit its financial targets is likely to reassure investors, after it failed to live up to expectations on one of the most hotly-anticipated initial public offerings (IPO) in recent years.
Chief executive Dara Khosrowshahi must still convince investors that Uber can one day turn a profit, given it relies heavily on rider incentives and competition across its business divisions, from ride hailing to food delivery to freight.
Its float in New York gave the company a valuation of $82bn, but it has since disappointed on the stock market. Shares fell 0.6 per cent today before results came out, leaving the company valued at $66.7bn.
Costs rose 35 per cent in the quarter, as the firm spent heavily before the float. Gross bookings, which measure the total value of rides before driver costs and other expenses, rose 34 per cent year-on-year to $14.6bn. Bookings were up 3.4 per cent on the previous quarter.
Chief financial officer Nelson Chai said the company was prepared to keep spending, telling investors: "We will not hesitate to invest to defend our market position globally."
Uber said its monthly active users rose to 93m globally, from 91m at the end of the fourth quarter.