Here’s why business experts think Uber’s ‘profitability’ pledge is misleading and meaningless (UBER)
|02/11/2020||Posted by BusinessMediaguide.Com under General World News||
- Uber excited investors and analysts last week when it predicted it would hit “profitability” by the end of this year.
- But the company’s definition of “profitability” doesn’t accord with standard accounting and leaves out a whole mess of expenses.
- The company’s preferred profitability measure — adjusted EBITDA — is problematic, because while it is improving, its outflow of actual cash is actually worsening.
- It wouldn’t be a surprise if the company hits its “profitability” target, business experts say, but investors shouldn’t consider that a huge achievement.
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