![]() All investments involve risk, including the possible loss of capital. This information is neither individualized nor a research report, and must not serve as the basis for any investment decision. This information is not a recommendation to buy, hold, or sell an investment or financial product, or take any action. This information is educational, and is not an offer to sell or a solicitation of an offer to buy any security. Uber reported Adjusted Net Revenue to inform its investors how changing drivers’ incentives would impact its revenue. ![]() Organizations have to explain the reason for a difference in GAAP and non-GAAP numbers, which they generally do in their financial statements. Uber’s Adjusted Net Revenue Calculation:. Uber also published its ‘Adjusted Net Revenue’ (a non-GAAP comparable number to revenue). According to Uber’s financial statement for the quarter that ended on March 31, 2019, it generated a revenue of $3.09B (GAAP number). Here’s a real-life example of non-GAAP accounting. That's why non-GAAP numbers are usually called 'adjusted.' Some non-GAAP figures may be adjusted to represent an accurate picture of a company's finances. If an accountant adds or deletes something from a comparable GAAP number’s calculation, it will become a non-GAAP number. Ninety-seven percent of the companies in the S&P500 include both GAAP and non-GAAP metrics while reporting numbers. Non-GAAP measures are like the side dish served along with your main order - You did not ask for it, but you are happy to get it, and it somehow makes the meal complete.
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