Uber Technologies Inc. says it reported strong revenue growth as well as cutting losses in the first quarter, boosting the company’s valuation to approximately $62 billion.
Uber told CNBC that it had net revenue of $2.5 billion, gaining 67 percent year over year on gross sales of $11.3 billion, increasing 55 percent year over year. Adjusted EBITDA loss was cut down by 49 percent year over year to $304 million, down from $597 million a year ago. Adjusted net loss was $577 million for the quarter.
“We are off to a terrific start in 2018, with our rides business beating internal plan and continuing to grow at healthy rates, while we significantly reduce our losses and maintain our leadership position around the world,” Uber CEO Dara Khosrowshahi said in a statement.
Uber also plans to sell between $400 million and $600 million in stock at $40 per share to existing investors Altimeter, TPG and Coatue. Uber employees with at least 1,000 shares are allowed to participate, but no one can sell more than $10 million worth of shares.
TechCrunch also confirmed that Uber is raising another secondary round of funding of up to $600 million, boosting Uber’s valuation to $62 billion. The $62 billion valuation mark is higher than its valuation last year of $49 billion after settling a deal with Softbank.
“Given the size of the opportunity ahead of us and our goal of making Uber a true mobility platform, we plan to reinvest any over-performance even more aggressively this year, both in our core business as well as in big bets like Uber Eats globally.” said Khosrowshahi.
Uber is still a private company, but reports of the company filing for an initial public offering has been floating around. Khosrowshahi had plans to take the company public last year August. At the time, he aimed to launch an IPO as soon as 18 months.
Although Uber is private and is not required to report financial results, but after former Uber CEO Travis Kalanick was demanded to step down, Khosrowshahi worked to regain investor and customer relations. Khosrowshahi has recently been releasing Uber’s financial results in the past previous quarters in order to repair its image.