While the losses are significant, the results still are positive for Uber with revenue rising and losses falling in three of four quarters in 2017, said Rohit Kulkarni, managing director of SharesPost, a research group focused on privately held companies.
The numbers show that Uber under Khosrowshahi is on a path toward profitability and a sustainable economic model, Kulkarni said. "If you draw that out further, a year from now, this could be a significant IPO waiting to happen," he said.
Uber considers adjusted earnings before taxes as a better indicator of its financial performance rather than net earnings based on Generally Accepted Accounting Principles, which include losses for accounting purposes.
On an adjusted basis, excluding stock-based compensation, legal costs, taxes and depreciation, the company lost US$2.2b for the full year. The fourth-quarter adjusted loss was US$475 million, down from US$606m to in the third quarter.
San Francisco-based Uber Technologies Inc.'s results are difficult to report because only pieces are released. Khosrowshahi detailed them on a conference call with investors Tuesday, and the company made some results public by giving them to a website called The Information.
A person briefed on the results provided some numbers and confirmed the accuracy of The Information's story to The Associated Press on Wednesday. The person didn't want to be identified because Uber remains a private company.
Last year was a particularly bad one for Uber with its reputation tarnished by the company's acknowledgement of rampant sexual harassment within its ranks, a yearlong cover-up of a major computer break-in, and the use of duplicitous software to thwart government regulators.
CEO Travis Kalanick was ousted in June and replaced by Khosrowshahi in August.
Earlier this month Uber ended the autonomous vehicle trade secrets lawsuit filed by Alphabet Inc.'s Waymo for a payment of Uber stock valued by Waymo at US$245m.
- AP