Opinion: The Big Contradiction at the Heart of the Tech Downturn Read Now

An Uber pickup zone at a shopping mall in Maryland. Photo by AP
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Uber/Lyft Markets

Uber’s Confidential Documents Show Path to $90 Billion IPO

Photo: An Uber pickup zone at a shopping mall in Maryland. Photo by AP

When Wall Street banks last fall were pitching to take Uber public, some suggested the ride-hailing giant could hit the public market with a valuation of $120 billion. But given how much valuations have fallen with the stock market slump in recent weeks, Uber is more likely to fetch a valuation of a little less than $90 billion. That still would be about $14 billion more than its most recent private valuation from the middle of 2018.

This valuation is based partly on previously undisclosed projections Uber gave creditors last March, in which the company projected it would double net revenue to $14.2 billion by 2019 from its 2017 revenue level. It also projected Uber’s loss before interest, taxes and non-cash items like depreciation and stock compensation would shrink to $500 million in 2019 from a projected $1.7 billion in 2018. Uber’s revenue in the first nine months of 2018 was better than its earlier projections, while Ebitda looks to be a little behind.

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