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Uber posted an adjusted Q3 profit of $8M. However, they posted an actual Q3 loss of $2.4B. On an adjusted basis I look just like George Clooney.
by timoth3y 5y ago
Uber posted an adjusted Q3 profit of $8M.
However, they posted an actual Q3 loss of $2.4B.
On an adjusted basis I look just like George Clooney.
- lumost 5y agoHow were they possibly able to adjust away 2.4 Billion dollars?
- timoth3y 5y agoThe biggest chunk was excluding their net loss in investments in other companies. However, "adjusted earnings" is a PR number it doesn't have any particular financial meaning. If Uber wanted to make the case that they are moving towards profitability, they could talk about operating income or cash flow from operations or some other metric that has a GAAP meaning. Those are the numbers to watch if you want to know if the company can ever be profitable.
- absherwin 5y agoThe most significant adjustment was excluding a $3.2B writedown of the value of their stake in Didi
- vineyardmike 5y agoIn plain english: They bought some stake in company Didi. In this past quarter, they acknowledged this stake was worth 3.2b less than it was recorded as in their books. Therefore, their books now "lost" 3.2B in value. But they did not "overspend" by 3.2B in the sense most people expect when hearing "they just lost 3.2B this quarter"
- moralestapia 5y ago>In this past quarter, they acknowledged this stake was worth 3.2b less than it was recorded as in their books. Lol, how does that happen, honestly.
- vineyardmike 5y agoTLDR: Chinese Government. Chinese Government announced it was investigating Didi for national security, which is usually code for corruption/ scaring management into greater compliance. Didi was a massively valuable Chinese company Uber owned a significant amount of. When the stock value crashed (-23% this quaarter), it destroyed a significant amount of book-value for uber who owned it.
- moralestapia 5y agoThanks, I didn't knew that story.