Uber, the popular startup specializing in ride-hailing services shared some of its new financials this week. The financials show that Uber continues to grow with impressive speed and despite its staggeringly high losses might be finding a handle to its constant cash burn.
The numbers released by the company were leaked in different quantities previously, but the disclosure this week was a positive move by Uber. That it was releasing its financials at this point is likely not all that surprising.
The first quarter has finished and Uber has been under much pressure by the public for petulant leadership, executive exodus and an overall broken culture.
In addition, its U.S. chief rival Lyft raised over $600 recently at a valuation that has been increased.
Uber hopes that through releasing figures showing revenue growth it can alter the narrative about its business.
The ride-hailing company, for a period of time, was known as the best disruptive startup that was busy posting new records for growth and its leadership would welcome the storyline to return to that topic and not the current one.
Uber’s gross bookings reached $20 billion. Of that amount, Uber counted over $6.5 billion as its net revenue GAAP. That equals just less than a third of the money that flowed through the platform of Uber.
Uber lost 5% more during its fourth quarter in 2016 compared to its third quarter the same year. The company lost over $991 million during the final quarter of 2016 implying a loss of $943 for its third quarter.
Uber’s loss was an adjusted $2.8 billion for 2016. That figure increases the tally of loses to $3.8 billion.
The figures compare to a $2 billion loss during 2015.
Both of these figures don’t take into account stock compensation for employees, real-estate investments, purchases of autos and other expenses.
For an adjusted basis, the company lost $3.8 billion during 2016. The real amount, using a complete GAAP reckoning likely is much higher.
Using the figure of $3.8 billion as a loss, Uber had a profit margin during 2016 of -58.5%.
The big losses are countered thanks to rapid growth in revenue.
Uber saw its gross bookings increase 28% between the 2016 third and fourth quarter, resulting in $2.9 billion in net revenue for the last three months of 2016.
Nevertheless, revenue during the fourth quarter was up 74% in comparison to the third quarter.