Generally Accepted Accounting Principles

Between conventional net income and the custom, non-regulated adjusted EBITDA, it should be no surprise that it's adjusted EBITDA that Uber promotes heavily to investors and media.

It's only in Uber's accounting fantasies and non-GAAP measures that the company is profitable.

By all conventional principles and regulated financial reporting standards, Uber is still unprofitable.

The apples don't fall far from the tree.

Yeah.

And I think any time I see non-GAAP, non-generally accepted accounting principle numbers thrown in alongside GAAP financials, it makes me very nervous because Usually, you're doing that because you're covering something up.

But I think they're trying to give a sense of what does scaling this look like? Is there a path to scaling this in a way that can make this a profitable company? And I think that is sort of an interest.

The compute efficiency is one sort of interesting way of thinking about, okay, well, at least For every dollar of compute, they're getting $2 out of that.

ADVI undertakes no obligation to update these forward-looking statements except as required by law.

On today's conference call, non-GAAP financial measures will be used to help investors understand ADVI's business performance.

These non-GAAP financial measures are reconciled with comparable gap financial measures in our earnings release and regulatory filings from today, which can be found on our website.

Following our prepared remarks, we'll take your questions.

So with that, I'll turn the call over to Rob.

Renewal rates stayed at 98%.

On earnings, non-GAAP EPS was $1, up 5% from $0.95 a year ago, but that missed consensus of $1.02 by $0.02. Gina Mastantuono, the CFO, attributed the shortfall to lower interest income and extra debt costs from the Armis acquisition.

GAAP net income fell nearly 45% to $277 million from $502 million and GAAP operating income dropped from $572 million to $385 million.

Non-GAAP operating margin was 32.5% versus 33.5% last year, though still 150 basis points above guidance.

An unused tax loss has no carrying amount, but it will cut future taxable income, so it gives a deferred tax asset.

It is recognized only if future taxable profit is probable under IFRS, the International Financial Reporting Standards, or more likely than not under US GOAP, Generally Accepted Accounting Principles.

The next lesson covers that test.

Another go deeper note.

For now, I'll keep going.

How does US GEAP, the Generally Accepted Accounting Principles used in the United States, measure the loss? in two steps for assets held for use.

Step one asks, is the carrying amount more than the undiscounted cash flows the asset should produce? If not, stop.

There is no impairment.

Expect a question on which company reports higher assets, higher cash flow from operations, or a higher return on assets.

and expect a count of what IFRS, International Financial Reporting Standards, and USGAPE, Generally Accepted Accounting Principles, each let you capitalize.

Does it matter whether a company buys, builds, or acquires an intangible? Yes.

The economics are identical, but the statements are not.

In words, capital spending minus the proceeds from selling long-term assets.

Meet Orchard Pumps, which reports under U.S. GAAP, the Generally Accepted Accounting Principles used in the United States.

We follow its figures through the lesson, with amounts in thousands of dollars.

Its operating cash flow is about $1.5 million.