Uber Discloses 3-Yr $10-Billion Loss from Operations, Stalling Rideshare Revenue & 50 Pages of “Risk Factors” that Are Not for the Squeamish

Wolf Street | 4/11/2019 | Wolf Richter
dewbydewby (Posted by) Level 4
Click For Photo: https://wolfstreet.com/wp-content/uploads/2019/04/US-Uber-2018-revenues-losses.png

But it had big tax benefits and one-time gains. And Uber Eats is hot, so to speak.

Uber Technologies’ IPO filing was made public today. The 330-page or so S-1 filing disclosed all kinds of goodies, including detailed but still unaudited pro-forma financial statements as of December 31, 2018, huge losses from operations, big tax benefits, large gains from the sale of some operations, stagnating rideshare revenues, and an enormous list of chilling “Risk Factors” that go beyond the usual CYA.

Filing - Share - Price - IPO - Valuation

The filing, however, didn’t disclose the share price, the IPO valuation, and how much money the IPO will raise for Uber. On Tuesday, “people familiar with the matter” had told Reuters that Uber plans to raise $10 billion in the IPO. Most of the IPO shares would be sold by the company to raise funds, and a smaller amount would be sold by investors cashing out, the sources said.

The filing did not confirm this and instead left blanks or used placeholder amounts. But if true, $10 billion in shares sold would make this IPO one of the biggest tech IPOs. And the rumored $90 billion to $100 billion valuation would make it the biggest since Alibaba’s $169 billion IPO.

Uber - Dime - IPO - Situation - Operations

Uber will need every dime it raises in the IPO going forward because it’s got a little cash-burn situation in its operations that persists going forward, as it admitted in its “Risk Factors,” and it will need to raise more money, and if it cannot raise more money, it might not make it. Uber is upfront about this.

The company has already raised – and mostly burned through – over $20 billion so far in its 10 years of existence. This includes $15 billion in equity funding and over $6 billion in debt.

IPO - Morgan - Stanley - Goldman - Sachs

For the IPO, Morgan Stanley and Goldman Sachs are the lead underwriters,...
(Excerpt) Read more at: Wolf Street
Wake Up To Breaking News!
The only change you ever get from the goverment is what's in your pocket, and worth less every day.
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!