While I haven't extensively researched, what I did find was this:
""" Not thinking of depreciation as an expense is crazy. I can think of a few businesses where one could ignore depreciation charges, but not many. Even with our gas pipelines, depreciation is real — you have to maintain them and eventually they become worthless (though this may be 100 years).
It [depreciation] is reverse float — you lay out money before you get cash. Any management that doesn’t regards depreciation as an expense is living in a dream world, but they’re encouraged to do so by bankers. Many times, this comes close to a flim flam game.
People want to send me books with EBITDA and I say fine, as long as you pay cap ex. There are very few businesses that can spend a lot less than depreciation and maintain the health of the business.
This is nonsense. It couldn’t be worse. But a whole generation of investors have been taught this. It’s not a non-cash expense — it’s a cash expense but you spend it first. It’s a delayed recording of a cash expense.
We at Berkshire are going to spend more this year on cap ex than we depreciate. """
So tell me - what giant depreciation expense does uber have that is going to jive with this assessment?
Disclaimer: not really an uber fan.
EBITA is a reasonable way to calculate profitability, which ignores taxes and interest. Equity-based compensation is a possible concern. Do you think that they're giving away so much of they're company to employees that they can't sustain that after they start paying pure-cashing (or cash + public equity) comp? (I'd honestly be surprised, but curious to know what you think.)