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It's time to another transcribed edition of Equity. This week, for the scheduled episode at the schedule, we invited the crew to the San Francisco studio. Kate Clark, Connie Loizos and Alex Wilhelm were joined by Om Malik, a former journalist and VC currently at True Ventures.
They met right after the Uber prize, so they had a lot to dig: the low price, will it pop up and if the former CEO and co-founder, Travis Kalanick, was at the sound of the bell in New York (he was not there).
But that was not all Uber; they talked to Carta, Cruise and Harry's. Below an excerpt. And come back soon for an emergency episode where Alex and Kate will deepen Uber's IPO. To access the full transcript, become a member of Extra Crunch. Learn more and try it for free.
Alex: Well, I want to get back to the price very quickly because $ 82 billion is less than the 90 we had heard after hearing the 120 in October. So it's a dramatic drop in price, which, I think, said Om, is actually pretty smart, because they will have a nice pop and things will get better.
Connie: And also, when you look back, it never really matters. I mean, I feel like a couple of people have already pointed out in the media today. But Google, Facebook, I mean, there have been so many companies where their IPOs did not even seem to go very well. I just do not think what's going to happen tomorrow will be important in the long run.
Alex: Well, the difference is that Uber has to raise a lot of money to stay alive. I mean, when Facebook went public, it went through a relatively difficult period after its IPO and generated a net income of $ 1 billion. They were good. Their IPO was then not so important apart from liquidity. It was not a fundraising measure. At this price, they will raise less money than they could have done at a higher price, and they burn tons.
Kate: I think they've probably lowered their goals for a lot of reasons, but I think Lyft's performance has to be taken into account. So I think we should move quickly over. Lyft published its first earnings report this week, which was very interesting. According to TL; DR, they posted first-quarter revenues of $ 776 million on losses of $ 1.14 billion, which included $ 894 million of stock-based compensation tax expense, which which, in other words, represents only significant expenses. So the losses were huge, yes. The company's revenues exceeded Wall Street's estimates of 740 million. But of course, with all expenses related to the IPO, the losses were considerably higher.
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