Uber Technologies Inc. (NYSE: UBER) lost money in 2021. For example, Uber reported four quarters of operating losses between December 2020 and September 2021.
For example, Uber (UBER) reported a quarterly operating losses of -$877 million on 31 December 2020, -$1.524 billion on 31 March 2021, -$1.188 billion on 30 June 2021, and -$572 million on 30 June 2021. However, Uber reported no operating income on 31 December 2021.
Conversely, Uber reported a quarterly gross profit of $1.165 billion on 31 December 2020, that grew to $1.881 billion on 31 December 2021. Yet Uber experienced substantial growth in 2021. For example, Uber’s quarterly revenues grew from $3.165 billion on 31 December 2020 to $5.778 billion on 31 December 2021.
Uber is a Growing Company
Hence, Uber (NYSE: UBER) is still a growing company that loses money. For example, Uber claims to have added 640,000 drivers between January and November 2021, The Ride Share Guy claims. Uber had over five million drivers worldwide in 2020, The Business of Apps estimates.
Uber had a 68% share of the US food delivery app market share in 2021, Business of Apps estimates. In comparison, Uber’s biggest competitor, Lyft (LYFT), had a 32% market share in 2021.
The Uber app had 93 million users worldwide in the fourth quarter of 2020, Statista estimates. In comparison, Uber had 111 million users in the fourth quarter of 2020. During COVID-19, Uber app users fell to a low of 55 million in the first quarter of 2020.
Hence, Uber is still popular and retains loyal customers in the worst of times. I think the usage during COVID shows Uber’s business is sustainable. If the company can avoid legal entanglements.
How Much Cash is Uber Generating?
Uber (UBER) is burning cash. For example, Uber reported three quarters of negative operating cash flow in 2021.
Uber began 2021 with a negative operating cash flow of -$778 million. The quarterly operating cash flow fell to -$561 million on 31 March 2021, and -$321 million on 30 June 2021. The quarterly operating cash flow rose to $668 million on 30 September 2021 and fell to -$47 million on 31 December 2021.
Uber can generate enormous amounts of cash. The company reported quarterly ending cash flows of $6.607 billion on 31 March 2021 and $3.336 billion on 30 September 2021. However, Uber did not report a quarterly ending cash flow on 31 December 2021. Moreover, there was a quarterly ending cash flow of -$153 million on 30 June 2021.
Uber finished 2021 with less cash. For example, Uber reported $7.077 billion in cash and short-term investments on 31 December 2020 and $4.926 billion on 31 December 2021.
In contrast, Uber’s total debt grew from $10.374 billion on 31 December 2020 to $11.505 billion on 31 December 2021. Uber is borrowing enormous amounts of money. For example, Uber reported a quarterly financing cash flow of $1.502 billion on 30 September 2021. The quarterly financing cash flow fell to $354 million on 31 December 2021.
Thus, Uber is still burning cash and making no money.
What Value Does Uber Have?
Uber (NYSE: UBER) gained some value in 2021. For example, Uber’s total assets grew from $33.252 billion on 31 December 2020 to $38.774 billion on 31 December 2021.
Yet Uber’s share price fell by $20 over the past year. For example, Mr. Market paid $60.81 on 17 February 2021 and $34.68 on 18 February 2022.
Thus, I advise investors to avoid Uber because it is losing money and its share valueand collapse. However, Uber’s business is still growing. Thus, I think Uber could become a value investment at some point if its share value keeps falling.
I list Uber as a stock to watch. I think Uber could have an enormous value at some point. However, I believe it could be several years before Uber makes money. My advice is to stay away from Uber until it makes money.
Uber is still an interesting stock with a growing business. Yet it will take time for Uber to make money.
Originally published at https://marketmadhouse.com on February 18, 2022.
 make in 2021?){kind=link}