Will Uber (UBER) collapse?

Financial data shows Uber (UBER) is back to normal. Unfortunately, Uber’s “normal” is incredible growth and no income.

For example, Uber’s revenues grew by 28.73% in the quarter ending on 31 March 2023. Uber has finished a year of dramatic revenue growth. Revenues grew by 136.1% in the quarter ending on 31 March 2022, 105.47% in the quarter ending on 30 June 2022, 72.2% in the quarter ending on 30 September 2022, and 48.96% in the quarter ending on 31 December 2022.

Consequently, Uber’s quarterly revenues grew from $6.854 billion on 31 March 2022 to $8.823 billion on 31 March 2023. Uber has more revenue than ever and less income.

Conversely, Uber reported a -$262 million quarterly operating loss on 31 March 2023. The quarterly operating loss fell from -$482 million on 31 March 2022 and grew from -$142 million on 31 December 2022.

How Much Cash is Uber Generating?

Smart investors will ask how much cash is Uber (UBER) generating because is a finance company. I consider Uber a FinTech company because its platform expedites payment between drivers and passengers. Uber makes money by charging drivers and passengers transaction fees.

Cash, not income, is the attraction at finance and FinTech companies. Uber can generate enormous amounts of cash. It reported a quarterly ending cash flow of $6.793 billion on 31 March 2023. However, Uber is generating less cash, the quarterly ending cash flow fell from $7.592 billion on 31 March 2022. The quarterly ending cash flow rose from -$1.957 billion on 31 December 2022.

Comparatively, Uber reported a quarterly operating cash flow of $606 million on 31 March 2023. The quarterly operating cash flow grew from $15 million on 31 March 2023 and -$244 million on 31 December 2022.

Uber’s cash and short-term investments grew from $4.727 billion on 31 March 2022 to $5.063 billion on 31 March 2023. However, the cash and short-term investments fell from $5.458 billion on 30 September 2022.

Hence, Uber is accumulating more cash. Yet it is far from a cash-rich company.

How Much Debt does Uber (UBER) have?

Uber’s debts are stable and shrinking slightly. The total debt fell from $9.743 billion on 31 March 2022 to $9.257 billion on 31 March 2023.

Uber (UBER) is paying debt. It reported a -$107 million quarterly financing cash flow on 31 March 2023. However, has borrowed some money it reported a $212 million quarterly financing cash flow on 30 September 2022.

The company has also made some investments. There was a -$1.769 billion quarterly investing cash flow on 31 December 2022 that fell to -$399 million on 31 March 2023. Uber reported a $321 million quarterly operating cash flow on 30 September 2022.

Uber is Growing

Uber’s growth has recovered to pre-pandemic levels. The number of Uber rides worldwide rose from 737 million in the second quarter of 2020 to 2.124 billion in the first quarter of 2023, Statista estimates. Uber users took 1.907 billion rides worldwide in the fourth quarter of 2019.

Uber’s gross bookings grew from $25.866 billion in the fourth quarter of 2021 to $30.749 billion in the fourth quarter of 2022. Uber claimed to have 5.4 million drivers and couriers in the fourth quarter of 2022.

They are developing additional revenue sources at Uber. Uber’s delivery revenues grew from $13.444 billion in the fourth quarter of 2021 to $14.315 billion in the fourth quarter of 2022. Delivery revenues grew from $2.242 billion to $2.931 billion in the same period. Uber’s Journey Ads revenue grew to over $500 million in the fourth quarter of 2022. Uber Freight revenues grew from $1.08 billion in the fourth quarter of 2021 to $1.54 billion in the fourth quarter of 2022.

Additionally, Uber One membership grew to 12 million in the fourth quarter of 2022. They expanded Uber One to four new countries Chile, France, Japan, Taiwan, and Spain in 2022.

What Value does Uber (UBER) Offer?

Uber’s platform is growing, and the company is developing additional revenue streams. Moreover, Uber is delivering strong share price growth.

Mr. Market paid $23.20 for Uber on 31 May 2022 and $39.73 on 2 June 2023. I think Uber’s share price is fair because Uber had $32.451 billion in total assets on 31 March 2023. However, Uber lost value in 2022. Uber had $32.812 billion in assets on 31 March 2022.

I think Uber (UBER) is an interesting and cheap growth stock. Uber’s growth proves ride share is a viable business that is capable of growth. Investors who want a cheap growth stock need to investigate Uber.