Uber Announces Results for Fourth Quarter and Full Year 2021

Gross Bookings of $25.9 billion, up 51% year-over-year and at the high end of the guidance range

Net income of $892 million, including a $1.4 billion net benefit relating to Uber’s equity investments

Adjusted EBITDA of $86 million was above the guidance range, with Delivery reaching Adjusted EBITDA profitability for Q4

SAN FRANCISCO–(BUSINESS WIRE)–Uber Technologies, Inc. (NYSE: UBER) today announced financial results for the quarter and full year ended December 31, 2021.

Financial Highlights for Fourth Quarter 2021

• Gross Bookings grew 51% year-over-year (“YoY”) to $25.9 billion, or 50% on a constant currency basis, with Mobility Gross Bookings of $11.3 billion (+67% YoY) and Delivery Gross Bookings of $13.4 billion (+34% YoY). Trips during the quarter grew 23% YoY to 1.77 billion, or approximately 19 million trips per day on average.
• Revenue grew 83% YoY to $5.8 billion, or 82% on a constant currency basis.
• Net income attributable to Uber Technologies, Inc. was $892 million, which includes a $1.4 billion net benefit (pre-tax) relating to Uber’s equity investments, primarily due to aggregate unrealized gains related to the revaluation of Uber’s Grab and Aurora equity investments, partially offset by an unrealized loss related to the revaluation of Uber’s Didi equity investment. Additionally, net income includes $334 million in stock-based compensation expense.
• Adjusted EBITDA of $86 million, up $540 million YoY. Adjusted EBITDA margin as a percentage of Gross Bookings was 0.3%, up from (2.6)% in Q4 2020.
• Mobility Adjusted EBITDA of $575 million, up $282 million YoY. Mobility Adjusted EBITDA margin as a percentage of Mobility Gross Bookings was 5.1%, up from 4.3% in Q4 2020.
• Delivery Adjusted EBITDA of $25 million, up $170 million YoY. Delivery Adjusted EBITDA margin as a percentage of Delivery Gross Bookings reached 0.2%, up from (1.4)% in Q4 2020.
• Unrestricted cash and cash equivalents were $4.3 billion at the end of the fourth quarter.

“Our results demonstrate just how far we’ve come since the beginning of the pandemic,” said Dara Khosrowshahi, CEO. “In Q4, more consumers were active on our platform than ever before, Delivery reached Adjusted EBITDA profitability, and Mobility Gross Bookings approached pre-pandemic levels. While the Omicron variant began to impact our business in late December, Mobility is already starting to bounce back, with Gross Bookings up 25% month-on-month in the most recent week.”

“We outperformed our quarterly guidance and delivered $540 million of Adjusted EBITDA improvement compared to Q4 of last year,” said Nelson Chai, CFO. “Moving forward, we are poised to continue to grow at scale while expanding profitability.”

Outlook for Q1 2022

For Q1 2022, we anticipate:

• Gross Bookings of $25 billion to $26 billion
• Adjusted EBITDA of $100 million to $130 million

⁽¹⁾ See “Definitions of Non-GAAP Measures” and “Reconciliations of Non-GAAP Measures” sections herein for an explanation and reconciliations of non-GAAP measures used throughout this release.

⁽²⁾ Net income (loss) attributable to Uber Technologies, Inc. includes stock-based compensation expense of $236 million and $334 million in Q4 2020 and Q4 2021, respectively. Net income also includes a $1.4 billion net benefit (pre-tax) relating to Uber’s equity investments in Q4 2021.

** Percentage not meaningful.

⁽¹⁾ See “Definitions of Non-GAAP Measures” and “Reconciliations of Non-GAAP Measures” sections herein for an explanation and reconciliations of non-GAAP measures used throughout this release.

⁽²⁾ Net loss attributable to Uber Technologies, Inc. includes stock-based compensation expense of $827 million and $1.2 billion in 2020 and 2021, respectively.

Results by Offering and Segment

⁽¹⁾ Q4 2021 Gross Bookings includes contributions from the acquisition of Transplace which closed on November 12, 2021.

⁽¹⁾ Q4 2021 Revenue includes contributions from the acquisition of Transplace which closed on November 12, 2021.

⁽²⁾ Includes historical results of ATG and Other Technology Programs.

** Percentage not meaningful.

⁽¹⁾ Excludes stock-based compensation expense.

⁽²⁾ Includes costs that are not directly attributable to our reportable segments. Corporate G&A also includes certain shared costs such as finance, accounting, tax, human resources, information technology and legal costs. Platform R&D also includes mapping and payment technologies and support and development of the internal technology infrastructure. Our allocation methodology is periodically evaluated and may change.

⁽³⁾ “Adjusted EBITDA” is a non-GAAP measure as defined by the SEC. See “Definitions of Non-GAAP Measures” and “Reconciliations of Non-GAAP Measures” sections herein for an explanation and reconciliations of non-GAAP measures used throughout this release.

** Percentage not meaningful.

Financial Highlights for the Fourth Quarter 2021 (continued)

Mobility

• Gross Bookings of $11.3 billion: Mobility Gross Bookings grew 67% YoY on a constant currency basis. On a sequential basis, Mobility Gross Bookings grew 15% quarter-over-quarter (“QoQ”), with sequential growth in all geographic regions with APAC outpacing segment trends.
• Revenue of $2.3 billion: Mobility Revenue grew 3% QoQ and grew 55% YoY. Mobility take rate of 20.1% declined 220 bps QoQ and 160 bps YoY. The sequential decline was driven by typical seasonal trends during Q4 and the roll-off of the UK accrual release in Q3 while the YoY decline was driven by ongoing driver supply investments in certain markets.
• Adjusted EBITDA of $575 million: Mobility Adjusted EBITDA increased $31 million QoQ and $282 million YoY. Mobility Adjusted EBITDA margin was 5.1% of Gross Bookings, compared to 5.5% in Q3 2021 and 4.3% in Q4 2020. Mobility Adjusted EBITDA margin as a percentage of Gross Bookings declined sequentially from Q3 as a result of higher driver incentives to meet seasonal demand, and higher driver incentives in certain markets that reopened from lockdowns in Q4. On a YoY basis, improvement in Adjusted EBITDA margin as a percentage of Gross Bookings was primarily driven by better cost leverage from higher volume, more than offsetting higher driver incentives.

Delivery

• Gross Bookings of $13.4 billion: Delivery Gross Bookings grew 33% YoY on a constant currency basis. On a sequential basis, Delivery Gross Bookings improved 5% QoQ, with strong growth in U.S. & Canada and EMEA offsetting declines in APAC.
• Revenue of $2.4 billion: Delivery Revenue grew 8% QoQ and 78% YoY. Take rate of 18.0% grew 60 bps QoQ and grew 450 bps YoY. Business model changes in some countries that classify certain payments and incentives as cost of revenue benefited Delivery take rate by 410 bps in the quarter (compared to 400 bps benefit in Q3 2021 and 100 bps benefit in Q4 2020).
• Adjusted EBITDA of $25 million: Delivery Adjusted EBITDA improved $37 million QoQ and $170 million YoY, driven by higher volumes, reduced incentive spend, and improved network efficiencies. Delivery Adjusted EBITDA margin as a percentage of Gross Bookings reached 0.2%, compared to (0.1)% in Q3 2021 and (1.4)% in Q4 2020.

Freight

• Freight delivered strong growth and improved EBITDA margins: With the acquisition of Transplace in November, Freight revenue grew 245% YoY, to $1.1 billion and Freight Adjusted EBITDA by 39% YoY. Excluding Transplace, the organic Freight business revenue grew 27% to $396 million. Freight improved Adjusted EBITDA margins as a percentage of Gross Bookings by 10.8 percentage points YoY to (2.3)% driven by enhanced marketplace efficiency and density of our digital platform, and continued automation of the load life cycle, as well as positive contributions from Transplace.

Corporate

• Corporate G&A and Platform R&D: Corporate G&A and Platform R&D expenses of $489 million, compared to $489 million in Q3 2021, and $489 million in Q4 2020. On a YoY basis, Corporate G&A and Platform R&D decreased as a percentage of Gross Bookings due to cost control and improved fixed cost leverage. For the full year, Corporate G&A and Platform R&D expense of $1.9 billion was comprised of $1.2 billion in Corporate G&A and $674 million in Platform R&D. On a YoY basis, FY 2021 Corporate G&A as a percentage of Gross Bookings was (1.3)%, down from (2.5)% in FY 2020, while Platform R&D as a percentage of Gross Bookings was (0.7)%, down from (1.2)% in FY 2020, as a result of our cost reduction activities and increased operating leverage.

GAAP and Non-GAAP Costs and Operating Expenses

• Cost of revenue excluding D&A: GAAP cost of revenue was $3.1 billion. Non-GAAP cost of revenue was $3.1 billion, representing 12.0% of Gross Bookings, compared to 10.1% and 8.3% in Q3 2021 and Q4 2020, respectively. On a YoY basis, non-GAAP cost of revenue as a percentage of Gross Bookings increased due to the classification of certain Delivery payments and incentives as cost of revenue attributable to business model changes in some countries.
• GAAP and Non-GAAP operating expenses (Non-GAAP operating expenses exclude certain amounts as further detailed in the Reconciliations of Non-GAAP Measures):
  • Operations and support: GAAP operations and support was $547 million. Non-GAAP operations and support was $509 million, representing 2.0% of Gross Bookings, compared to 1.9% and 2.1% in Q3 2021 and Q4 2020, respectively. On a YoY basis, non-GAAP operations and support as a percentage of Gross Bookings decreased due to improved fixed cost leverage.
  • Sales and marketing: GAAP sales and marketing was $1.3 billion. Non-GAAP sales and marketing was $1.2 billion, representing 4.8% of Gross Bookings, compared to 5.0% and 6.0% in Q3 2021 and Q4 2020, respectively. On a YoY basis, non-GAAP sales and marketing as a percentage of Gross Bookings decreased due to improved cost leverage with Gross Bookings growth outpacing sales and marketing expense growth. Additionally, Gross Bookings mix shifted towards Mobility, which carries lower associated sales and marketing costs.
  • Research and development: GAAP research and development was $558 million. Non-GAAP research and development was $367 million, representing 1.4% of Gross Bookings, compared to 1.5% and 2.0% in Q3 2021 and Q4 2020, respectively. On a YoY basis, non-GAAP research and development as a percentage of Gross Bookings decreased due to lower employee headcount costs, which was primarily driven by the sale of our ATG business in the first quarter of 2021.
  • General and administrative: GAAP general and administrative was $611 million. Non-GAAP general and administrative was $473 million, representing 1.8% of Gross Bookings, compared to 2.0% and 2.9% in Q3 2021 and Q4 2020, respectively. On a YoY basis, non-GAAP general and administrative as a percentage of Gross Bookings decreased due to lower employee headcount costs and improved fixed cost leverage.

Operating Highlights for the Fourth Quarter 2021

Platform

• Trips of 1.77 billion: Trips on our platform grew 8% QoQ and 23% YoY, with sequential growth in both Mobility and Delivery trips.
• Monthly Active Platform Consumers (“MAPCs”) reached 118 million: MAPCs grew 8% QoQ and grew 27% YoY to 118 million.
• Membership: Officially launched Uber One in the U.S. in November as our single cross-platform membership program that brings together the best of Uber. For $9.99 per month, members have access to discounts, special pricing, priority service, and exclusive perks across rides, delivery and grocery.
• Supporting earners: Drivers and couriers earned an aggregate $9.5 billion during the quarter, with earnings up 56% YoY, outpacing Uber’s Gross Bookings growth of 51% YoY.
• Uber Canada UFCW earner agreement: In Canada, we announced a historic national agreement with Canada’s largest private-sector union in the food, retail, and service sectors, United Food and Commercial Workers (“UFCW”) Canada. Now Uber Canada and UFCW are jointly advocating for government reforms that protect flexibility while providing new benefits. UFCW can also provide representation if requested for drivers and delivery people facing account dispute issues.
• Uber for Business (“U4B”): U4B Gross Bookings of $1.3 billion in Q4, up 116% YoY, and surpassing U4B Gross Bookings in Q4 2019. Managed U4B, which is the actively managed portion of the business through Uber’s account managers and sales team, reached 27% of U4B Gross Bookings. U4B recorded strong growth in both Mobility and Delivery Gross Bookings as corporate Mobility and Delivery use cases continue to grow.

Mobility

• Airport recovery: Airport Gross Bookings represented 13% of Mobility Gross Bookings in Q4 2021, growing 24% QoQ and nearly 200% YoY, outpacing the overall Mobility segment’s recovery as consumer travel trends improved.
• Clear x Uber: Partnered with Clear Secure to integrate Uber’s mobility platform directly into the Clear app to help travelers better plan their airport travel. Using Clear’s Home to Gate feature, users will be able to use its data driven insights to find out exactly when to leave for their flight and reserve an Uber ride ahead of time – creating a more seamless, predictable travel experience.
• Rides with WhatsApp in India: Rolled out a new service in India that gives people the option to book an Uber ride via an official Uber WhatsApp chatbot, therefore not having to download or use the Uber app, as well as expanding access to millions of WhatsApp users.
• Expanded safety features: Announced safety features including audible seat belt alerts, and expanded audio recording feature to 14 countries and a pilot in the U.S.
• Uber Health transportation support: Uber Health announced a partnership with CVS Health to provide transportation support at no cost to individuals who need it most when seeking access to medical care, work, or educational programs. This partnership aims to help eliminate a critical barrier to care and well-being – transportation.
• Uber Connect expansion: Expanded availability of Uber Connect—our person-to-person package delivery service—to over 340 new cities in Latin America, and now live in thousands of U.S. cities including New York City, Philadelphia, Pittsburgh, Los Angeles and San Francisco. We also introduced Connect Moto in Latin American markets, as well as increased functionality to include “Meet at Door” deliveries globally. Connect is now available in over 8,600 cities and towns worldwide.

Delivery

• Reopening impact: Delivery continued to demonstrate strong consumer, merchant and courier metrics even as COVID-19 restrictions eased around the world. Delivery MAPCs, basket size and order frequency were stable QoQ, and grew nearly 14% YoY, 9% YoY and 8% YoY, respectively. Active merchants grew 27% YoY to exceed 825K in Q4. Globally, active couriers grew 34% YoY, and grew 73% YoY in the U.S.
• Supporting merchants: Along with Visa, announced a $1 million grant relief program, Grants for Growth, focused on restaurant recovery and entrepreneurship. Through this program, which builds off of Uber’s Eat Local campaign and continuous commitment to merchants, 100 merchants will receive $10,000 grants, which can be used toward immediate operational needs like meeting payroll. As a foundation for Grants for Growth, we also released our first ever Merchant Impact Report, which provides a glimpse into Uber’s impact on small and medium merchant partners.
• Ads: Advertising annualized revenue run rate reached over $225 million in Q4 as active advertising merchants grew to over 170K well over the initial $100 million run rate target communicated during Q2 2021.
• Grocery and convenience expansions worldwide: In the U.S., announced the launch of Smart + Final Grocers on the Uber Eats app, bringing over 170 new locations across California, Arizona, and Nevada, as well as a nationwide expansion of CVS on the marketplace, inclusive of over 7,000 stores. We expanded our Costco partnership to include Japan, building upon existing pilots in the U.S. and Canada. In France, we launched nearly 200 Monoprix locations. In New Zealand, we made grocery available on Uber Eats with grocers New World and Four Square.
• Hims & Hers Health partnership: Announced a partnership in the U.S. with Hims & Hers, the multi-specialty telehealth platform focused on providing personalized health and wellness experiences to consumers, to bring a wide variety of the company’s personal care products to the Uber Eats app.
• Uber Direct: Continuing to make new and unique retail offerings available on Uber. In the U.K., cosmetics brands Benefit and L’Occitane are now available on the Uber Eats app and through an Uber Direct partnership. In Chile, an Uber Direct partnership has enabled device delivery for Claro, the country’s third-largest telecom provider.
• Uber Eats rapid grocery in Japan: Continuing our approach of using smart local models to meet consumer demand for shorter delivery times, we launched the Uber Eats Market in Tokyo, our first dark grocery store in Japan with more than 1,100 items including fresh foods and a curated selection of Costco items.
• Cannabis pick-up: Announced an exclusive partnership with Canadian cannabis retailer, Tokyo Smoke, to provide consumers with the ability to place orders from Tokyo Smoke’s catalog and unique accessories on the Uber Eats app. Tokyo Smoke is the first cannabis merchant to list itself on the Uber Eats platform.
• Motional AV partnership: Announced a partnership with Motional, a global leader in driverless technology, to launch autonomous deliveries for Uber consumers. Motional’s all-electric vehicles will conduct deliveries from select Uber Eats restaurants. Piloting in Santa Monica, and following a robotic delivery partnership with Serve Robotics, this marks our first delivery partnership with an autonomous vehicle technology provider.

Freight

• Transplace acquisition close: Completed our acquisition of Transplace, one of the largest managed transportation and logistics networks in the world. The transaction brings together Uber Freight’s vast network of digitally-enabled carriers with Transplace’s trusted shipper technology and operational solutions, ultimately creating one of the world’s leading logistics technology platforms to meet the rapidly evolving needs of shippers and carriers alike.
• Aurora partnership: Announced a multiphase commercial pilot with Aurora to move freight in Texas and explore integration of Uber Freight’s network with Aurora Horizon, Aurora’s trucking product suite. This partnership will provide carriers with additional tools to further maximize fleet utilization and streamline operations. Over the next couple of years, we expect collaboration with Aurora to continue as we explore integration of Aurora’s cloud-based infrastructure, Aurora Beacon, into the Uber Freight network.
• Freight is positioned to capitalize on new logo acquisition: Uber Freight onboarded 18 new enterprise customers onto our digital brokerage platform in Q4, building on the 14 enterprise customers onboarded in Q3. These shippers collectively move more than $45 billion in freight annually, building the foundation for sustained momentum heading into 2022 as we deepen relationships with new and existing customers. In addition, Transplace signed 19 Transportation Management deals with new customers in Q4, with momentum continuing into 2022.
• Carrier Wallet: In partnership with Marqeta and Branch, we are bringing speed, control, and transparency to the carrier payment experience through a debit card solution. This digital wallet features a fee-free, FDIC-insured checking account and a commercial card specifically designed for faster carrier settlements. The Uber Freight Card provides carriers with a free-to-use card to easily spend funds from Uber Freight Wallet, plus fuel rewards to support drivers on their biggest expense. These features on top of fast, hassle-free payments within hours rather than weeks deliver a level of service to carriers of all sizes typically enjoyed only by larger companies.

Recent Developments

• Car Next Door acquisition: Announced our acquisition of Car Next Door, an Australian peer-to-peer car sharing platform which offers convenient access to cars for renters, whilst providing revenue to car owners, making it easy to turn any car into a shared car. By adding Car Next Door to Uber’s current product portfolio, we will bolster our ability to provide consumers with an easy, affordable, and convenient alternative to private car ownership.

Webcast and conference call information

A live audio webcast of our fourth quarter and year ended December 31, 2021 earnings release call will be available at https://investor.uber.com/, along with the earnings press release and slide presentation. The call begins on February 9, 2022 at 2:00 PM (PT) / 5:00 PM (ET). This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, is also available on that site.

We also provide announcements regarding our financial performance and other matters, including SEC filings, investor events, press and earnings releases, on our investor relations website (https://investor.uber.com/), and our blogs (https://uber.

Contacts

Investors and analysts: investor@uber.com
Media: press@uber.com

Read full story here