Uber announced yesterday the results for Q3 2022. Here are my comments:
- The mobility service is now a premium, considering the actual prices
- Revenue from food delivery increased, but lower than food inflation
“net cash flow from operating activities less CAPEX = $358m“ – how can this be lower than shares issued to employees? (ie. $482 millions)
- “Our global scale and unique platform advantages are working together to drive more profitable growth, with Gross Bookings growth of 32% and record Adjusted EBITDA of $516 million,” said Dara Khosrowshahi, CEO —- profitable growth? The company lost $1.2 billion (with a “B”), the number of employees reached the pre-pandemic levels and probably close to 50% cities are not profitable
When it comes to food delivery it is worth mentioning that most of the consumers are price sensitive
Sources: Uber, WSJ, ? Viktor Avdeev (Unsplash)
Looking at their consolidated statements I see the following numbers:
1/ $2bn on R&D. What exactly is here? Flying cars?!
2/ the number of shares has increased. This is a financial trick. More shares results in a lower negative EPS (where EPS is the holy grail indicator on Wall Street)
The road to profitability is much harder than it seems. I remain short on Uber.