This week's meme story is dedicated to Zomato for becoming "profitable"
Today, we are going to have a different kind of meme story. Normally we troll many companies in the same story but today, we are dedicating our entire story to one company: Zomato. Let me first tell you the context and then let us go. Zomato recently came out with their Q3 results and they have become profitable! Now before you jump in joy, they are profitable at EBITDA level. Now before you start walking in joy, it is adjusted EBITDA. Before you start sitting in joy, it is the pre-acquisition of Blinkit. See how it is? How irritated you became? So is the market. Adjusted EBITDA, adjusted revenue. Next adjusting for all the price erosion, your investment in Zomato would have been profitable. Now see the collection of memes and tweets dedicated to this minor adjustment.
Adjusted for the traffic, the roads and sugar in the sambhar, Bangalore has great weather and its illegal to adjust for that.— Deepak Shenoy (@deepakshenoy) February 9, 2023
Balance sheet of a modern Unicorn.. pic.twitter.com/9SEOBG7c4u— The Kaipullai (@thekaipullai) February 9, 2023
Adjusted for Rohit Sharma, we're already all out— Buggy Human (@SridharanAnand) February 10, 2023
This is like saying I am debt free (ex all loans I have to repay) https://t.co/obU9yzQ7om— Darshan Mehta (@darshanvmehta1) February 9, 2023
Adjusted for all my belly fat, I've lost weight.— Eternal fool 🤡 (@passivefool) February 9, 2023
Adjusted for hair loss, I have a full head of hair— Eternal fool 🤡 (@passivefool) February 9, 2023
Now a question may arise, why is the market so harsh towards Zomato? After all, they only reported what happened. But that's not how it is. Profit is actual profit, not adjusted. What is the point of adjusting an acquisition, like it is some sort of an exceptional item? Beyond laughing, investors must question such metrics and ask where the actual profit or cash flow is. The market moves based on actual numbers and not adjusted numbers.