In Numbers And Narrative, Uber's Q4 Suggests A Recovery

The narratives around Uber’s year-end earnings vastly diverge. One headline celebrates a 61-percent year-over-year rise in fourth-quarter revenue, while another laments a full-year loss expansion of 60 percent.

The Facts

In the final quarter of 2017, Uber’s $475-million adjusted loss, as reported by the New York Times, was an improvement from $607 million the previous period. Total revenue increased 14 percent sequentially to $11.3 billion, according to The Information.

The full year figures carried a different tune. Losses swelled from $2.8 billion to $4.5 billion on sales of $7.5 billion.

Uber closed the year with $6 billion in cash — about 15 percent less than in 2016.

Here’s The Context

The numbers reflect a relatively rough year.

Management battled a culture of sexual harassment that forced the departure of its founding CEO and created a public relations nightmare. Failure to cooperate with a social movement resulted in a temporary boycott. Alphabet Inc (NASDAQ: GOOGL)’s Waymo sued over trade secrets. And all the while, competition emerged from new mobility players, like General Motors Company (NYSE: GM)’s Maven.

The last quarter of the year was Uber’s first complete term under Dara Khosrowshahi, former Expedia Inc (NASDAQ: EXPE) CEO.

What It Means

Khosrowshahi seems to be turning things around and inspiring confidence in the beleaguered Uber team.

“We’re incredibly encouraged by our financial performance and excited by our long-term potential to serve riders, drivers and cities,” Matt Kallman, an Uber spokesman, told the Times.

The company plans to IPO in 2019.

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