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Note: - Expected to be teh largest IPO this year in the US. - 10th largest all time - trying to raise around $10B - 2018 Year Ended Revenue $11.27 billion
by chollida1 8y ago
Note:
- Expected to be teh largest IPO this year in the US.
- 10th largest all time
- trying to raise around $10B
- 2018 Year Ended Revenue $11.27 billion
- 2018 Year Ended Net Income $997 million
- 2017 Year End lost $4.03 billion.
- 10 billion trips in September 2018, up from 5 billion in September 2017
- Gross Bookings From Ridesharing $41.5 billion in 2018
- Revenue From Ridesharing Products $9.2 Billion in 2018
- List under UBER, good ticker!!
- 29 banks listed as underwriting the IPO, for those of you wondering, yes that is alot. Like 20+ more than a typical IPO.
From Bloomberg:
- 2018, Uber's operating loss totaled $3.03 billion, however it technically turned a profit in 2018, generating $997 million in net income. That's thanks to a $5 billion "other income" benefit.
Other Income is defined as:
- Interest income, which consists primarily of interest earned on our cash and cash equivalents and restricted cash and cash equivalents.
- Gain on divestitures, which consists of gain on sale of divested operations.
- Unrealized gain on investments, which consists primarily of gains from fair value adjustments relating to our investments such as our investment in Didi.
- Foreign currency exchange gains (losses), net, which consist primarily of remeasurement of transactions and monetary assets and liabilities denominated in currencies other than the functional currency at the end of the period.
- Change in fair value of embedded derivatives, which consists primarily of gains and losses on embedded derivatives related to our Convertible Notes.
- Other, which consists primarily of changes in the fair value of warrants and income from forfeitures of warrants.
- Lyft now at $61/share, ouch, there just is no other way to put it. THey pulled a lot of financial engineering tricks to boost their IPO price and well the results speak for themselves:(
Biggest Surprise to me:
- Uber Eats comes in at $165 million for Q4, for comparison Ride sharing generated a total of $2.5B in net revenue, the rest being ride sharing.
- So Uber is not really all that diversified in terms of ride sharing vs other, they are essentially Lyft in more markets.
- zone411 8y agoThis $3.2 billion other income in 2018 was from divestitures of Russia/CIS and Southeast Asia operations.
- Not_a_pizza 8y agoSo... Step one, raise funding to run a revolutionary company. Step two, ditch original idea for being revolutionary once funding is obtained. Use interest bearing bonds and other investments. Step three, profit.
- buryat 8y agoUber Eats revenue in 2018 is $1.46B which is pretty impressive regarding other income: > Gain on divestitures increased by $3.2 billion from 2017 to 2018. This increase was due to gains on the divestitures of our Russia/CIS and Southeast Asia operations. Covered on page 85, basically spinoffs with other regional leaders
- cududa 8y agoIve heard from reliable sources 10% of Uber Eats revenue goes to McDonald’s (not promotionally, in revenue)
- CydeWeys 8y agoWow, that many people are ordering delivery McDonald's? Maybe McDonald's should start delivery services in some markets itself then?
- deleted 8y ago[deleted]
- darpa_escapee 8y agoI'm noticing more chains offering delivery, I wouldn't be surprised if McDonald's is next.
- graphememes 8y agoBad idea. Overhead from running your own delivery service is high, and the profit wouldn't be more than using the existing network of delivery services. It would probably be negative.
- buryat 8y agothe problem is that you have to have constant stream of orders to justify having people who deliver on payroll. Uber basically has people who deliver and then rent them to restaurants so they never have a problem of constant load.
- rayiner 8y ago> Adjusted EBITDA was $(1.8) billion in 2018 and $(2.6) billion in 2017
- gcb0 8y agofrom what? investing unused VC money they expect to burn in the near future?
- rory096 8y ago> Lyft now at $61/share, ouch, there just is no other way to put it. THey pulled a lot of financial engineering tricks to boost their IPO price and well the results speak for themselves:( I don't understand why this is seen as a negative. An IPO is a share issuance — the higher the price per share, the more money they receive in exchange for the same percentage of the company. Post-IPO "pops" represent money left on the table, effectively a transfer to the high-dollar investors with connections to the underwriter who can buy at the issue price.
- BinaryIdiot 8y agoWhile you're right in general about a pop, that doesn't really apply to Lyft. Their IPO price was $72 and they're now hovering around $60. They had an initial pop up to around $75 IIRC and then have been on a steady decline since.
- deleted 8y ago[deleted]
- nostrademons 8y agoIt's a good thing for Lyft-the-corporation but a bad thing for anyone who bought into the IPO. Any sort of financial engineering tricks that goose the accounting numbers without affecting the long-term health of the business are basically a transfer payment from people who buy in at the inflated price to entities who sell at the inflated price. It's rational for the company to try to pull them; it's also rational for prospective shareholders to refuse to take the other side of the trade (at least until the price corrects to the point where the true fundamentals make it worth it). In today's markets, you can always find someone irrational.
- johannes1234321 8y ago> It's a good thing for Lyft-the-corporation but a bad thing for anyone who bought into the IPO. Which in turn is and for the company since the new co-owners (shareholders) don't want to lose money but push the executives to "do something" (while in reality even combined most of the new shareholders don't have much voting power
- granzymes 8y agoLack of dual class stock is also interesting.
- deleted 8y ago[deleted]
- hobofan 8y agoThat's not really surprising, is it? Dual class stock is usually issued for tech companies where the founders were able to hold onto a lot of shares until the IPO, which I think isn't the case for Uber.
- alteria 8y ago>THey pulled a lot of financial engineering tricks to boost their IPO price Could you elaborate? Interested in knowing more
- cartsagis 8y agoUber is Lyft in more markets? More like UberEats is almost Lyft.
- pastor_elm 8y ago>- 10 billion trips in September 2018, up from 5 billion in September 2017 You make it sound like they had 10 billion trips in that month alone. It is 10 billion by September 2018
- maxxxxx 8y ago"- Lyft now at $61/share, ouch, there just is no other way to put it. THey pulled a lot of financial engineering tricks to boost their IPO price and well the results speak for themselves:(" Seems they priced it perfectly, extracted maximum value for their investors and left nothing to gain for the public.
- brentm 8y agoWhen considering 2018 you really need to ignore the 4.9B in other income. The vast majority of that was a one time event, and then the next largest line item is unrealized gains. Not sure what the gains were on but likely something not very liquid and volatile, e.g. a start up. It's basically a 4B loss for 2018. The numbers all around are just unreal.
- SOLAR_FIELDS 8y agoOne thought about your ticker comment - I actually prefer it when the ticker is NOT exact same as the company like UBER or LYFT. This is because I know when I google AMZN, AAPL, TSLA etc. the search engine knows I want the stock price and am specifically asking about stock. For UBER and LYFT I have to type something like ‘LYFT stock’ if I want the price, trends and news around that.
- rezbull 8y agoTry adding a $ in front of the ticker and Google will take care of it for you.
- SOLAR_FIELDS 8y agoHmm I just tried on an iPhone 8+ googling $lyft on safari and nothing I got back in the top results are stock related. Then I tried on my home desktop with DDG with FireFox and had similar results. Perhaps the behavior is tied to the “google bubble”?
- hnra 8y agoFWIW, it didn't work for me either.
- jpster 8y agoI’m curious about their Treasury department. How do they manage the float bet. when users pay and when drivers are paid? How do they manage FX? A sharp treasury team is quite an asset.
- thisisit 8y agoCouple of things which I find interesting are: - The whole calculation around "Other Income" are nothing short of financial engineering to show bottom line profitability. - 24% of Uber's gross bookings come from 5 cities - Los Angeles, New York City, and the San Francisco Bay Area in the United States; London in the United Kingdom; and São Paulo in Brazil - 15% rides started or were completed at an airport.
- agumonkey 8y agogot me curious, 10 largest IPO so far: https://webcache.googleusercontent.com/search?q=cache:https://www.investopedia.com/articles/investing/011215/top-10-largest-global-ipos-all-time.asp&strip=1&vwsrc=0 https://webcache.googleusercontent.com/search?q=cache:https:... [gcache]