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Yeah, that's why I qualified by saying it's on adjusted ebitda. The ridesharing industry doesn't use GAP yet under the argument it's still a nascent industry, s
by lhorie 5y ago
Yeah, that's why I qualified by saying it's on adjusted ebitda. The ridesharing industry doesn't use GAP yet under the argument it's still a nascent industry, so the narrative right now mostly centers around showing a trend towards actual profitability quarter after quarter (as opposed to this narrative that 1B+ losses are still somehow just being masked by VC cash injections of equal weight).
The being public thing is especially important since it basically means these companies (Uber, Lyft, Grab, Didi, etc) can't rely on cute accounting tricks. It's kinda do or die before the runway ends.
- disgruntledphd2 5y agoFundamentally, either IPO proceeds or remains of VC money (or debt) are funding Uber, as they're not broke yet.
- lhorie 5y agoWell, it did post 4.8B revenue in Q3, so obviously that also funds a good chunk of operations.
- disgruntledphd2 5y agoWhile losing an additional 2.8bn. That's what I mean, they have a net loss, which means that they need money from somewhere else to sustain themselves over time.
- lhorie 5y agoIf you're talking about the Q3 net loss figure, I already mentioned downthread that a good chunk of it was due to the Didi stake write-off. This is kinda why I mentioned the rideshare industry talks so much about ebitda; the equity side is so leveraged and volatile that it overshadows the operations numbers at this point, despite not actually having all that much impact in day-to-day operations.
- disgruntledphd2 5y agoPoint me to a quarter where they have made a GAAP profit, please. Like, I've been bearish on Uber for a long time now, but would be happy to be proved wrong.
- lhorie 5y agoI mean, we already went over this, i.e. there isn't such a quarter on record, if that's the only metric you're looking at. At least from what I've seen, many analysts are bullish right now (mostly due to a combo of low stock price, growth momentum in hedged verticals and scale of operations). Another data point is Doordash; some have pointed out that Uber eats' volume is bigger than DD, yet that isn't reflecting in the stock price (i.e. they think uber is undervalued considering the trajectory of profit in uber's delivery segment) Disclaimer: I've been keeping a pretty close eye on uber because I have a fairly sizable stock position. My intention here isn't to shill or cheerlead or whatever. Obviously, take whatever I say with a grain of salt, do your own research, etc.
- disgruntledphd2 5y ago> Disclaimer: I've been keeping a pretty close eye on uber because I have a fairly sizable stock position. My intention here isn't to shill or cheerlead or whatever. Obviously, take whatever I say with a grain of salt, do your own research, etc. Totally fair. I would have a different position (obviously) if I had invested in them. I just really don't see them getting enough profits to justify their valuation, but then I was wrong about FB so I may just be a perma-bear.
- mdoms 5y ago> adjusted ebitda You can just say "fake".