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No one in the finance or investment industry I know sets much store by GAAP numbers which has lots of weird quirks [1] and isn't really helpful understanding th
by sfifs 9y ago
No one in the finance or investment industry I know sets much store by GAAP numbers which has lots of weird quirks [1] and isn't really helpful understanding the business.
From what I read off the reported numbers, they made about a billion on 11 billion on collections above the line. Excluding R&D and depreciation, they spent about 1.2 billion recurring or 1.5 billion all in. That doesn't sound like a bad place for the business that's close to tripling over a few quarters to be at all.
[1] https://www.bloomberg.com/view/articles/2018-01-17/if-everyone-loses-money-together-it-s-fine https://www.bloomberg.com/view/articles/2018-01-17/if-everyo...
- TheCoelacanth 9y agoEven the non-GAAP number that they prefer has them losing $2.2 billion. Not exactly a small loss.
- sfifs 9y agoYup. But if you look at the reported P&L, they have grown revenue 2.5X over 6 quarters, held or slightly improved gross margins and grown op ex o slightly less than 2X in the same period. So clearly business is growing and growing healthy with a path to profitability even without invoking "self drive cars" I've been skeptical of Uber in the past but this performance is very impressive. It's probably not Google/FB P&L level impressive but that's just applying a very stretch benchmark.