‘Our stock did not trade as well as we had hoped’: Read the reassuring email Uber’s CEO sent employees following its disastrous IPO

Uber’s first days as a public company are not going well.

Following its initial public offering on the New York Stock Exchange last Friday, Uber’s stock value has been trading well below its IPO price. At the end of its first day of trading, 81% of the $29.55 billion in equity the company had raised was underwater.

It’s the biggest first-day dollar loss in US IPO history, according to an analysis from University of Florida professor Jay Ritter. On Monday, the stock was down another 11% by early afternoon.

It’s no surprise, then, that Uber CEO Dara Khosrowshahi sent a reassuring letter to employees on Monday, first obtained by New York Times reporter Mike Isaac. Uber representatives confirmed the letter’s authenticity with Business Insider.

Uber CEO Dara Khosrowshahi and co-founder Garrett Camp take a selfie photograph on the trading floor of the New York Stock Exchange (NYSE) during the company's IPO in New York.

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Uber CEO Dara Khosrowshahi and co-founder Garrett Camp take a selfie photograph on the trading floor of the New York Stock Exchange (NYSE) during the company’s IPO in New York.
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Reuters/Brendan McDermid

“Obviously our stock did not trade as well as we had hoped post-IPO,” he said. “Today is another tough day in the market, and I expect the same as it relates to our stock. But it is essential for us to keep our eye on the long-term value of Uber for our customers, partners, drivers, and investors.”

Moreover, he compared Uber’s IPO to those of Amazon and Facebook.

“Remember that the Facebook and Amazon post-IPO trading was incredibly difficult for these companies,” he said. “And look at how they have delivered since. Our road will be the same.”

Uber is holding an all-hands for employees this week, and the letter was intended as a means of addressing employee concerns with the IPO ahead of that.

“We will make certain that we communicate our incredible value as a company that is changing the way the world moves, but also the value that we are building for our owners,” he told employees. “But there is one simple way for us to succeed – focus on the work at hand and execute against our plans effectively.”

Read the full letter from Uber CEO Dara Khosrowshahi, as transcribed by Business Insider, below:

Team Uber:

I’m looking forward to being in front of you at the All Hands tomorrow, but I wanted to send you a quick note in the meantime.

First off, I want to thank you all for your passion for and commitment to Uber. We simply would not be here without you.

Like all periods of transition, there are ups and downs. Obviously our stock did not trade as well as we had hoped post-IPO. Today is another tough day in the market, and I expect the same as it relates to our stock.

But it is essential for us to keep our eye on the long-term value of Uber for our customers, partners, drivers, and investors.

Every stock is valued based on the projected future cash flows/profits that the company is expected to generate over its lifetime. There are many versions of our future that are highly profitable and valuable, and there are of course some that are less so. During times of negative market sentiment, the pessimistic voices get louder, and the optimistic voices pull back.

We will make certain that we communicate our incredible value as a company that is changing the way the world moves, but also the value that we are building for our owners. But there is one simple way for us to succeed – focus on the work at hand and execute against our plans effectively.

Remember that the Facebook and Amazon post-IPO trading was incredibly difficult for these companies. And look at how they have delivered since.

Our road will be the same. Sentiment does not change overnight, and I expect some tough public market times over the coming months. But we have all the capital we need to demonstrate a path to improved margins and profits. As the market sees evidence, sentiment will improve, and as sentiment improves, the stock will follow. We will not be able to control timing, but we will be able to control the outcome.

We will be judged long-term on our performance, and I welcome that. It’s all in our hands.

I look forward to being there at the All Hands to answer Qs and tell you more.

Onwards, DK.