It’s time for one other transcribed version of Equity. This week for the commonly scheduled episode we had the entire crew pop into the San Francisco studio. Kate Clark, Connie Loizos and Alex Wilhelm had been joined by Om Malik, former journalist and present VC at True Ventures.
They convened simply after Uber priced, so that they had loads to dig into: The low worth, wouldn’t it pop and would the previous CEO and co-founder Travis Kalanick be on the ringing of the bell in New York (he wasn’t).
But it wasn’t all Uber; they talked Carta, Cruise and Harry’s. Below is an excerpt. And come again quickly for an emergency episode the place Alex and Kate will go deeper on the Uber IPO. For entry to the complete transcription, turn into a member of Extra Crunch. Learn extra and take a look at it without spending a dime.
Alex: Well, I need to return to the worth actually fast as a result of $82 billion is under the 90 we had heard after we’d heard the 120 again in October. So this can be a dramatic downgrade in worth, which I believe as stated Om stated is definitely fairly sensible as a result of they’ll have a pleasant pop and issues will get higher.
Connie: And additionally, if you look again, it by no means actually issues that a lot. I imply, I really feel like a few individuals have already pointed this out within the media in the present day. But Google, Facebook, I imply, there’s been so many firms the place their IPOs didn’t appear to even go very nicely. I simply don’t suppose it actually goes to matter in the long run what occurs tomorrow.
Alex: Well, the distinction although is Uber wants to lift a bunch of cash to remain alive. I imply, Facebook after they went public had a comparatively tough publish IPO interval, had $1 billion in trailing hole web earnings. They had been effective. Their IPO wasn’t that essential apart from the liquidity then. It wasn’t a fundraising metric. At this worth, they’ll increase much less cash than they may’ve at a better worth, they usually burn tons of it.
Kate: I believe there are numerous explanation why they most likely did decrease their targets, however I believe one most likely has to do with Lyft’s efficiency. So I believe we must always simply rapidly go over. Lyft did launch their first earnings report this week, which was fairly attention-grabbing. The TL;DR is that they posted first quarter revenues of $776 million on losses of $1.14 billion, which did embrace 894 million of stock-based compensation associated payroll tax bills, which in different phrases, simply main IPO bills. So losses had been large, sure. The firm’s revenues did surpass Wall Street estimates, which had been 740 million. But after all, with all of the IPO bills, losses got here in considerably larger.
