Read the memo Uber’s CEO sent to employees after its disappointing IPO

Uber CEO Dara Khosrowshahi sent a memo to employees Monday after the company’s disappointing IPO that saw shares fall more than 7% from its listing price. In the memo, Khosrowshahi writes, “Obviously our stock did not trade as well as we had hoped post-IPO.” He also notes that Monday has been another “tough day in the market.” Uber was down at least another 10% Monday amid a broad market sell-off, as Dow fell over 600 points after China retaliated with tariffs on $60 billion worth of U.S. imports in the ongoing trade war. Khosrowshahi told his employees in the memo to look back at Facebook and Amazon’s IPOs, which also had rocky starts before growing their massive market caps. He also said the IPO raised a lot of capital for the company that will be reinvested into improving margins and profits. “We will be judged long-term on our performance, and I welcome that,” Khosrowshahi wrote. “It’s all in our hands.”

Here’s the full memo from Dara Khosrowshahi:

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 those 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.

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