Ahead of the start of its investor roadshow on April 29 (and plans to list its shares on the New York Stock Exchange on May 10), Uber has issued its first public filing, providing details on the financials of the ride-hailing app.
The decade-old US car-booking company is aiming to raise $10bn and recently told holders of its convertible debt that it could be valued at $90bn to $100bn, according to people familiar with the matter. It was last valued at $76bn in a private fundraising in August.
However, CEO Dara Khosrowshahi has a, well, "uber-sized" financial incentive to do everything he can to push the company's valuation higher, and ensure that Uber doesn't replicate the post-IPO slump of its rival Lyft. He and at least four other executives at the company have an incentive package that won’t vest until the company reaches a $120 billion valuation, a number that represented the upper end of its underwriters' initial valuation estimates.
Uber's 2018 revenues were $11.27 billion
United States and Canada: $6.15 billion
Latin America: $2 billion
Europe, Middle East and Africa: $1.72 billion
Asia Pacific: $1.03 billion
And theoretically, the firm made almost $1 billion in 2018...
But that was thanks to a $3.2 billion divestiture...
So, Uber's operating loss totaled $3.03 billion...
And the company's aggregate five year loss from operations is $12.1 Billion...
"Adjusted EBITDA has declined in recent periods primarily due to reduced Core Platform Contribution Profit (Loss) and investments in our Other Bets segment. We expect Adjusted EBITDA losses to increase in the future"
"We have incurred significant losses since inception, including in the United States and other major markets. We expect our operating expenses to increase significantly in the foreseeable future, and we may not achieve profitability,"
The number of Uber drivers worldwide in 2019: 3.9 million drivers (up from 3 million in 2018, 2 million in 2017, and 1 million in 2015)
And here is the chart that explains why now is the time to IPO...
Lipstick, meet pig!
Uber's filing names a whopping 29 banks underwriting the IPO. Morgan Stanley and Goldman Sachs are leading the listing on behalf of this crowded syndicate.
Uber states that as of the end of last year the company had a $7.9 billion accumulated deficit.
Uber warns about costs in risk factors:
"We anticipate that we will continue to incur losses in the near term as a result of expected substantial increases in our operating expenses, as we continue to invest in order to: increase the number of Drivers, consumers, restaurants, shippers, and carriers using our platform through incentives, discounts, and promotions; expand within existing or into new markets; increase our research and development expenses; invest in ATG and Other Technology Programs; expand marketing channels and operations; hire additional employees; and add new products and offerings to our platform."
Full Uber S-1 Filing: