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>The number is typically calculated by annualizing a recent week, month, or quarter of the company's gross revenue, which means actual annual revenue may differ
by dsugarman 11y ago
>The number is typically calculated by annualizing a recent week, month, or quarter of the company's gross revenue, which means actual annual revenue may differ substantially.
Maybe I am reading this the wrong way but in broader context of this article it reads as they are trying to say that the actual revenue may be much lower. They should explicitly say that for a growth company like Uber, the actual revenue # would be much larger.
- viscanti 11y agoIf a company grows significantly in a year, the earnings for their most recent week would be more typical of their "size" than what they've made throughout the year. In that case, what they've made over the past year might not be a good indicator of what they'd make over the next year.
- mikeyouse 11y agoUber, Lyft, Airbnb, etc. all typically report 'Gross Revenue' which is pretty misleading since the majority of Gross Revenue is passed through to the driver / apartment owner -- That may be what that sentence is in reference to. The interesting number is 'Net Revenue' which is how much Uber actually receives to pay their bills, etc. Quick example, if 10 riders take an Uber and their cost is $20/each, Uber would report $200 in Gross Revenue. Since their driver split is something like 80/20, their Net Revenue would only be $40.
- SeeDave 11y agoFrom my limited understanding, I believe Groupon tried something similar and was shut down by the SEC during IPO.