6 ms·

I am confused. Is $213M Uber's top line, or bottom line?

nlh 13y ago
Uber collects the full amount of the fare, but keeps only 20% of it for itself -- 80% goes right back out the door to the driver. Typically this is called "Gross Revenue" vs. "Net Revenue" So the $1B in gross revenue is the same as how a small car dealership books gross revenue for the total $ value of the cars it sells, even though most of that $ goes right back to the manufacturer ("cost of goods sold") So $1B is their Gross Revenue (top top line), and $213M would be their Net Revenue (bottom top line) -- then all expenses, etc. come out from there...
- deleted 13y ago
  [deleted]
- swalkergibson 13y ago
  Gotcha. I was not sure if they were going to book it as COGS or what exactly they were doing there. Makes sense now! Thanks!
samspenc 13y ago
My understanding is that its top line. So Uber gets $1B in revenue, but gives most of it to the drivers - so is left with $213M in total revenue. So we don't know its "income" or profits.
testrun 13y ago
In many companies (and GAAP), what is here referred to as gross revenue will be revenue, and what is called here as net revenue will be gross income. After that you deduct normal expenses that is related to create revenue, then that will be earnings before tax, interest and amortization (EBITDA). To get to nett you need to deduct from EBITDA the interest, amortization and tax, as well as abnormal items. COGS (cost of goods sold) is normally the difference between revenue and gross income.
- ghein 13y ago
  GAAP has adjustments for industries. Types of businesses where COGS is very high frequently have Gross and Net revenue rather than revenue and Gross income because of the difficulty in finding signal in costs and margins. Not to mention that a market maker with $1B in revenue can support orders of magnitude less interest expenses than a software firm with the "same" revenue. Not all business analysis and important ratios depend on earnings, however defined. Thus the importance of a Net Revenue figure that then has typical expenses deducted from it to get to EBITDA.

nlh 13y ago

Uber collects the full amount of the fare, but keeps only 20% of it for itself -- 80% goes right back out the door to the driver. Typically this is called "Gross Revenue" vs. "Net Revenue" So the $1B in gross revenue is the same as how a small car dealership books gross revenue for the total $ value of the cars it sells, even though most of that $ goes right back to the manufacturer ("cost of goods sold") So $1B is their Gross Revenue (top top line), and $213M would be their Net Revenue (bottom top line) -- then all expenses, etc. come out from there...

deleted 13y ago
[deleted]
swalkergibson 13y ago
Gotcha. I was not sure if they were going to book it as COGS or what exactly they were doing there. Makes sense now! Thanks!

samspenc 13y ago

My understanding is that its top line. So Uber gets $1B in revenue, but gives most of it to the drivers - so is left with $213M in total revenue. So we don't know its "income" or profits.

testrun 13y ago

In many companies (and GAAP), what is here referred to as gross revenue will be revenue, and what is called here as net revenue will be gross income. After that you deduct normal expenses that is related to create revenue, then that will be earnings before tax, interest and amortization (EBITDA). To get to nett you need to deduct from EBITDA the interest, amortization and tax, as well as abnormal items. COGS (cost of goods sold) is normally the difference between revenue and gross income.

ghein 13y ago
GAAP has adjustments for industries. Types of businesses where COGS is very high frequently have Gross and Net revenue rather than revenue and Gross income because of the difficulty in finding signal in costs and margins. Not to mention that a market maker with $1B in revenue can support orders of magnitude less interest expenses than a software firm with the "same" revenue. Not all business analysis and important ratios depend on earnings, however defined. Thus the importance of a Net Revenue figure that then has typical expenses deducted from it to get to EBITDA.