In a letter to prospective investors, Uber fessed up to generating $470 million in operating losses on $415 million in revenue, Bloomberg reported Monday (June 29).
The term sheet, which was viewed by Bloomberg News, is being used to drum up interest in a current funding round. According to Bloomberg, the sheet does not include details on a time period for the results but does outline the company’s plans to sell $1 billion to $1.2 billion in convertible bonds.
"These are substantially old numbers that do not reflect business activities today,” Uber spokeswoman Nairi Hourdajian said via an email to Bloomberg. Hourdajian did not provide comment on why the numbers were being used to promote a funding round.
As the ride-sharing company continues its global expansion efforts, the figures show it is taking some hits. Uber’s aggressive spending in China is being met with intense local competition, which could be attributing to the heavy losses.
The company has made no secret of its plans to scale beyond the more than 300 cities and 58 countries it currently serves, but it has kept quite quiet about its finances in the past.
The document lays out Uber’s 300 percent year-over-year growth and includes details about the bond terms, which can be converted to shares at a compound 11.5 percent discount if (or when) the startup goes public.
In the term sheet, Uber confirms the bonds will mature in 2022 and will produce an 8 percent annual return rate if they are held through maturity. The document said Uber is looking to complete the bond deal by Tuesday.
This move coincides with Uber’s ongoing campaign to raise cash. The company is in the process of negotiating a $2 billion credit line from various Wall Street banks, a source close to the situation told Bloomberg recently. Earlier this year, the company raised $1.6 billion in convertible debt, bringing its value to $40 billion, Bloomberg said.
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