Uber Q2 financials
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Uber Q2 financials
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Re: Uber Q2 financials
#2“Uber had $6.6 billion in cash at quarter's end, down from around $7.2 billion at the end of Q1 ... Uber's global ride-share business was margin positive last quarter, which is a flip from Q1.”
Uber is on a loss run rate of $2.4 billion annually mainly from the US market. The questions become:
* Given that global is positive, what is the loss in US? What will it take to flip US to positive? What will Lyft do?
* Can Uber keep global markets positive or will they have similar challengers that will force additional investment?
Re: Uber Q2 financials
#3Can someone explain to a layman how a company losing $600M every 3 months, with $6B remaining of $12B raised (50% loss over 8 years) is "worth" $62B?
Re: Uber Q2 financials
#4Can someone explain to a layman how a company losing $600M every 3 months, with $6B remaining of $12B raised (50% loss over 8 years) is "worth" $62B?
Value is based on what investors expect the firm will be able to do in the future, which may differ from what they are doing now.
Re: Uber Q2 financials
#5Can someone explain to a layman how a company losing $600M every 3 months, with $6B remaining of $12B raised (50% loss over 8 years) is "worth" $62B?
Growth companies are valued on future expectations and not on current financials. You have to believe that the economics will improve for Uber.
The $68 billion Uber valuation is also not real in the sense that investors have liquidation preferences and multiples. Employees don't and have the inverse of what is given to investors. The real value is some fraction. They have also stumbled like no other company before them. This probably has some impact.
Re: Uber Q2 financials
#6Can someone explain to a layman how a company losing $600M every 3 months, with $6B remaining of $12B raised (50% loss over 8 years) is "worth" $62B?
Growth companies are valued on future expectations and not on current financials. You have to believe that the economics will improve for Uber. The $68 billion Uber valuation is also not real in the sense that investors have liquidation preferences and multiples. Employees don't and have the inverse of what is given to investors. The real value is some fraction. They have also stumbled like no other company before th…
That's my biggest wonder, how can the economics change for the better?
Re: Uber Q2 financials
#7Can someone explain to a layman how a company losing $600M every 3 months, with $6B remaining of $12B raised (50% loss over 8 years) is "worth" $62B?
Value is based on what investors expect the firm will be able to do in the future, which may differ from what they are doing now.
I think there will be a big pivot from car ownership to rentals... maybe add up insurance, maintenance, and leasing fees to get to $600-1000 a month for unlimited car-service.
Automated cars will be summoned by phone, arrive when you schedule them, and go pick up others when not needed..
Pretty sure a lot of the car companies are planning something like this, I know tesla is. Uber wants to hold out till their self-driving cars pay off, but I think it'll be a much more crowded space by then, and they might be dead in the water before hitting pay-dirt.
I think uber's in a death spin, not sure it can pull out.
Re: Uber Q2 financials
#8Earlier quoted context omitted.
Growth companies are valued on future expectations and not on current financials. You have to believe that the economics will improve for Uber. The $68 billion Uber valuation is also not real in the sense that investors have liquidation preferences and multiples. Employees don't and have the inverse of what is given to investors. The real value is some fraction. They have also stumbled like no other company before th…
That's my biggest wonder, how can the economics change for the better?
If, for example, Uber crushes all competition, then they can raise fares and lower partner payments and make a bigger profit.
Re: Uber Q2 financials
#9Can someone explain to a layman how a company losing $600M every 3 months, with $6B remaining of $12B raised (50% loss over 8 years) is "worth" $62B?
The long term goal for Uber is to build a global monopoly of self-driving taxis in a world where no one owns their own car. That would be worth trillions.
For a long time they looked like they might manage it, but things haven't been going well lately. The latest valuation doesn't factor that in.
Re: Uber Q2 financials
#10Can someone explain to a layman how a company losing $600M every 3 months, with $6B remaining of $12B raised (50% loss over 8 years) is "worth" $62B?
> Uber's global ride-share business was margin positive last quarter, which is a flip from Q1.
I think this means that the cost associated with an avg ride was less than Uber charged for the ride.
"R&D overhead" is all the software engineers and PMs and UX people and VPs. Let's say there are 5,000 of those and each costs $300k/yr on avg, that's $1.5B/yr + offices, servers, etc. which they're losing every year.
If they can further scale up the number of rides (and keep it margin positive), eventually they'll be able to finance the "R&D overhead" from the margin, and actually be overall net positive. (Or, bring down the costs by getting rid of drivers. Or, push into adjacent markets like food.) If you believe in this, then Uber is worth more than -X to you. (Lots of people actually do, so it's actually worth sth like $50B+.)