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Yes, and they would take a corresponding gross margin hit as the driver's payment comes from revenue rather than being accounted for before it. I do not think
by ryanworl 10y ago
Yes, and they would take a corresponding gross margin hit as the driver's payment comes from revenue rather than being accounted for before it.
I do not think this a shell game to make the revenue number larger. The way drivers are paid while driving UberX vs. Uber Pool is different, and that probably has accounting rule impact.
- iaw 10y agoGAAP doesn't have to include stock based compensation as a normal expense. If you throw in the fact that Uber compensates at 50% in stock this is probably a shell game.
- wintermute2001 10y agoThat's not true: https://www.fool.com/investing/2017/04/14/okta-inc-ipo-what-investors-need-to-know.aspx https://www.fool.com/investing/2017/04/14/okta-inc-ipo-what-.... If you're using GAAP, you have to include stock-based compensation as a cost. There are, however, a lot of tech companies that try and spin non-GAAP earnings by removing stock-based compensation, which can paint a very different picture (e.g., Salesforce)