Uber, losing billions, freezes engineering hires

Re:Uber, losing billions, freezes engineering hires by JumpCrisscross on Saturday August 10, 2019 @09:28PM (#20665632)

> 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.

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Re:Uber, losing billions, freezes engineering hires by foobiekr on Saturday August 10, 2019 @10:37PM (#20665864)

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.

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Re:Uber, losing billions, freezes engineering hires by HeavenFox on Saturday August 10, 2019 @11:11PM (#20665991)

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.

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Re:Uber, losing billions, freezes engineering hires by foobiekr on Sunday August 11, 2019 @12:32PM (#20668885)

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.

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Re:Uber, losing billions, freezes engineering hires by cma on Saturday August 10, 2019 @10:10PM (#20665769)

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

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