That was the result of a one time cost, their IPO, not a continuing operating expenditure. So, that $5b figure doesn't fairly represent how they will perform as a business in the long term.

> Why would you value their stock at 0 to get that 'actual' number?

It's a one-time non-cash expense. Allocating to a single quarter is an accounting convenience.

Stock comp represents an economic cost--shareholders are diluted by it. But allocating it now or then, here or there, is arbitrary. As such, when making longitudinal statements (e.g. is Uber's economic position improving or receding), stripping out such items is standard.

Well, it's not really a one-time cost. It's a cost which will recur in pretty much every quarter with a one-tome magnitude.

While I don't know the specifics about UBER, some companies have RSU that vest only upon liquidation event, eg an IPO, which would inflate the number for that quarter, since you're effectively paying out all stock compensation owed to employees all at once.

Yes, that’s the magnitude part. But Uber relies very, very heavily in RSU compensation and those expenses will show up every quarter going forward.

As long as it was prorated to previous quarters in the previous evaluations I guess that is fine.