Uber Announces Results for Second Quarter 2020

Revenue of $2.2 billion, declining 29% year-over-year or 27% on a constant currency basis

Mobility Adjusted EBITDA of $50 million

SAN FRANCISCO–(BUSINESS WIRE)–Uber Technologies, Inc. (NYSE: UBER) today announced financial results for the quarter ended June 30, 2020.

Financial Highlights for Second Quarter 2020

  • Gross Bookings declined to $10.2 billion, down 35% year-over-year, or 32% on a constant currency basis, with Mobility Gross Bookings declining 73% and Delivery Gross Bookings growing 113% year-over-year, each on a constant currency basis.
  • Revenue declined 29% year-over-year, or 27% on a constant currency basis. Mobility Revenue declined 67% year-over-year and Delivery Revenue grew 103% year-over-year.
  • Adjusted Net Revenue (“ANR”) declined 33% year-over-year, Mobility ANR declined 66% year-over-year and Delivery ANR grew 162% year-over-year. YoY Growth % at constant currency & ex-Driver appreciation award was (37)% and with respect to Mobility and Delivery, (68)% and 163%, respectively. Adjusted Net Revenue and segment Adjusted Net Revenue excludes the impact of COVID-19 response initiatives.
  • Net loss attributable to Uber Technologies, Inc. was $1.8 billion, which includes $131 million in stock-based compensation expense and $382 million in restructuring and related charges.
  • Mobility1 Adjusted EBITDA delivered $50 million in profit, down $456 million year-over-year, and down $531 million quarter-over-quarter, and 6.3% margin as a percentage of Mobility ANR.
  • Delivery1 Adjusted EBITDA was $(232) million, up $54 million year-over-year and up $81 million quarter-over-quarter.
  • Adjusted EBITDA was $(837) million, down $181 million year-over-year, and $225 million quarter-over-quarter. Adjusted EBITDA excludes the impact of COVID-19 response initiatives.
  • Unrestricted cash, cash equivalents and short-term investments were $7.8 billion.
  • COVID-19 response initiatives had an impact on GAAP net loss of $48 million including an impact on GAAP revenue of $6 million and an impact on GAAP cost of revenue of $22 million and an impact on total operating expenses of $20 million. (details and reconciliation below)

Our team continues to move at Uber speed to respond to the pandemic’s impact on our communities and on our business, leading our industry forward with new products and safety technologies, and harnessing the strong tailwinds driving exceptional growth in Delivery, with Gross Bookings growing 122 percent year-over-year excluding exited markets2,” said Dara Khosrowshahi, CEO. “We are fortunate to have both a global footprint and such a natural hedge across our two core segments: as some people stay closer to home, more people are ordering from Uber Eats than ever before.”

Our Mobility segment generated $50 million in Adjusted EBITDA profit, despite a 73 percent year-over-year decline in Gross Bookings, on a constant currency basis,” said Nelson Chai, CFO. “Meanwhile, we improved our Delivery Adjusted EBITDA margin by 33 percentage points, and took quick and decisive action to remove over $1 billion in annualized costs across the entire company, reducing Corporate G&A and Platform R&D costs by over $150 million compared to last quarter. All this, in addition to our strong balance sheet, bolsters our continued confidence that we will achieve Adjusted EBITDA profitability before the end of 2021.”


1 Note: Effective Q2 2020, the Rides segment has been renamed to Mobility and the Eats segment has been renamed to Delivery. In addition, as a result of the JUMP Divestiture, certain immaterial offerings have been moved from our previously defined Other Bets segment into Mobility. Segment information for Other Bets is presented for comparison purposes.

2 Exited markets refer to markets we have divested or exited since Q2 2019, and include Austria, Czech Republic, Egypt, Honduras, India, Saudi Arabia, South Korea, Peru, Romania, United Arab Emirates, Ukraine, and Uruguay.

Second Quarter 2020 Financial and Operational Highlights

 

 

Three Months Ended June 30,

 

 

 

 

(In millions, except percentages)

 

2019

 

2020

 

% Change

 

% Change

(Constant

Currency (1))

 

 

 

 

 

 

 

 

 

Monthly Active Platform Consumers (“MAPCs”)

 

99

 

 

55

 

 

(44

)%

 

 

Trips

 

1,677

 

 

737

 

 

(56

)%

 

 

Gross Bookings

 

$

15,756

 

 

$

10,224

 

 

(35

)%

 

(32

)%

GAAP Revenue

 

$

3,166

 

 

$

2,241

 

 

(29

)%

 

(27

)%

Adjusted Net Revenue (1)

 

$

2,873

 

 

$

1,918

 

 

(33

)%

 

(31

)%

GAAP Net loss attributable to Uber Technologies, Inc. (2)

 

$

(5,236

)

 

$

(1,775

)

 

66

%

 

 

Mobility Adjusted EBITDA

 

$

506

 

 

$

50

 

 

(90

)%

 

 

Delivery Adjusted EBITDA

 

$

(286

)

 

$

(232

)

 

19

%

 

 

Adjusted EBITDA (1)

 

$

(656

)

 

$

(837

)

 

(28

)%

 

 

(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 $3.9 billion and $131 million in Q2 2019 and Q2 2020, respectively, and $382 million in restructuring and related charges in Q2 2020.

Gross Bookings

 

 

Three Months Ended June 30,

 

 

 

 

(In millions, except percentages)

 

2019

 

2020

 

% Change

 

% Change
(Constant

Currency)

 

 

 

 

 

 

 

 

 

Gross Bookings:

 

 

 

 

 

 

 

 

Mobility

 

$

12,188

 

 

$

3,046

 

 

(75

)%

 

(73

)%

Delivery

 

3,386

 

 

6,961

 

 

106

%

 

113

%

Freight

 

167

 

 

212

 

 

27

%

 

27

%

ATG and Other Technology Programs

 

 

 

 

 

**

 

**

Other Bets

 

15

 

 

5

 

 

(67

)%

 

(66

)%

Total

 

$

15,756

 

 

$

10,224

 

 

(35

)%

 

(32

)%

** Percentage not meaningful.

GAAP Revenue

 

 

Three Months Ended June 30,

 

 

 

 

(In millions, except percentages)

 

2019

 

2020

 

% Change

 

% Change
(Constant

Currency)

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

Mobility

 

$

2,376

 

 

$

790

 

 

(67)

%

 

(65)

%

Delivery

 

595

 

 

1,211

 

 

103

%

 

110

%

Freight

 

167

 

 

211

 

 

27

%

 

27

%

ATG and Other Technology Programs (1)

 

 

 

25

 

 

**

 

**

Other Bets

 

28

 

 

4

 

 

(86)

%

 

(85)

%

Total

 

$

3,166

 

 

$

2,241

 

 

(29)

%

 

(27)

%

(1) Including $25 million collaboration revenue from Toyota recognized in Q2 2020.

** Percentage not meaningful.

Adjusted Net Revenue (1)

 

 

Three Months Ended June 30,

 

 

 

 

(In millions, except percentages)

 

2019

 

2020

 

% Change

 

% Change

(Constant

Currency (1))

 

 

 

 

 

 

 

 

 

Adjusted Net Revenue:

 

 

 

 

 

 

 

 

Mobility (2)

 

$

2,341

 

 

$

793

 

 

(66)

%

 

(64)

%

Delivery (3)

 

337

 

 

885

 

 

162

%

 

172

%

Freight

 

167

 

 

211

 

 

27

%

 

27

%

ATG and Other Technology Programs (4)

 

 

 

25

 

 

**

 

**

Other Bets

 

28

 

 

4

 

 

(86)

%

 

(85)

%

Total

 

$

2,873

 

 

$

1,918

 

 

(33)

%

 

(31)

%

(1)

 

“Adjusted Net Revenue,” “Mobility Adjusted Net Revenue,” “Delivery Adjusted Net Revenue” and constant currency are non-GAAP measures as defined by the SEC. “Freight Adjusted Net Revenue,” “ATG and Other Technology Programs Adjusted Net Revenue,” and “Other Bets Adjusted Net Revenue (prior to the second quarter of 2020)” are equal to GAAP net revenue in all periods presented. 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)

 

Q2 2019 includes a $287 million driver appreciation award in connection with our initial public offering (“IPO”).

(3)

 

Q2 2019 includes an $11 million driver appreciation award in connection with our IPO.

(4)

 

Including $25 million collaboration revenue from Toyota recognized in Q2 2020.

** Percentage not meaningful.

Net Loss, Adjusted EBITDA and Segment Adjusted EBITDA

Net loss attributable to Uber Technologies, Inc. was $5.2 billion in Q2 2019, which includes $3.9 billion in stock-based compensation expense. Net loss attributable to Uber Technologies, Inc. was $1.8 billion in Q2 2020, which includes $131 million in stock-based compensation expense and $382 million in restructuring and related charges.

 

 

Three Months Ended June 30,

 

 

(In millions, except percentages)

 

2019

 

2020

 

% Change

 

 

 

 

 

 

 

Segment Adjusted EBITDA:

 

 

 

 

 

 

Mobility

 

$

506

 

 

$

50

 

 

(90

)%

Delivery

 

(286

)

 

(232

)

 

19

%

Freight

 

(52

)

 

(49

)

 

6

%

ATG and Other Technology Programs

 

(132

)

 

(91

)

 

31

%

Other Bets

 

(70

)

 

(23

)

 

67

%

Corporate G&A and Platform R&D (1), (2)

 

(622

)

 

(492

)

 

21

%

Adjusted EBITDA (3)

 

$

(656

)

 

$

(837

)

 

(28

)%

(1)

 

Excluding 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.

GAAP Revenue by Geographical Region

 

 

Three Months Ended June 30,

 

 

(In millions, except percentages)

 

2019

 

2020

 

% Change

 

 

 

 

 

 

 

United States and Canada

 

$

1,967

 

 

$

1,250

 

 

(36

)%

Latin America (“LATAM”)

 

417

 

 

232

 

 

(44

)%

Europe, Middle East and Africa (“EMEA”)

 

506

 

 

401

 

 

(21

)%

Asia Pacific (“APAC”)

 

276

 

 

358

 

 

30

%

Total

 

$

3,166

 

 

$

2,241

 

 

(29

)%

Operating Highlights for the Second Quarter 2020

Mobility

  • Maintained Segment Adjusted EBITDA profitability: Aggressively managed costs and found efficiencies to achieve positive Mobility Adjusted EBITDA of $50 million in the face of Gross Bookings decline of 73% year-over-year on a constant currency basis.
  • Launched industry-leading safety technology: Redefined what a safe trip looks like with in-app product innovations like mask detection for drivers, video education and go-online checklists for all users, and new “no mask” feedback tags that promote shared accountability.
  • Launched and expanded Hourly booking option: Following a successful pilot of an Hourly booking option in cities across Australia, Africa, Europe, and the Middle East, expanded Hourly to select cities in the U.S. This feature lets riders set multiple stops in hour-long increments for errands, longer trips, or essential activities.
  • Deepened partnerships with public transit agencies: Launched partnership with Marin County in California to integrate Uber software-as-a-service and become their exclusive ride hailing partner, in our first on-demand public transportation software as a service deployment. Also became the exclusive ride hailing partner for France’s national railway and transit operator, SNCF.

Delivery

  • Gross Bookings accelerated: Delivery Gross Bookings year-over-year growth accelerated to 113% on a constant currency basis (122% excluding exited markets), compared to 54% year-over-year in Q1’20, with growth accelerating in all regions. Enterprise and SMB bookings growth was comparable to overall segment growth, suggesting broad based momentum.
  • Improved Segment Adjusted EBITDA: Delivery Adjusted EBITDA loss reduced to $(232) million, improving $81 million quarter-over-quarter and $54 million year-over-year or by 59 percentage points as a percent of ANR.
  • Expanded restaurant selection: Active partnered restaurants on Uber Eats crossed 500K in June, growing over 50% year-over-year. Signed several key enterprise accounts including A&W Restaurants (Canada), Baskin Robbins, Bojangles’ Famous Chicken & Biscuits, Burger King (France & Spain), Chopt Creative Salad, Dave & Buster’s, Del Taco, Domino’s (France), Hungry Jack’s (Australia), Plenus (Japan) and Yum Brands, among others. New SMB restaurant additions during the quarter grew over 70% year-over-year.
  • Launched new delivery verticals: Expanded set of offerings to grocery, convenience, pharmacy and prescriptions, in response to growing consumer demand. Active merchants on the platform grew to over 10,000. Starting in July, Uber consumers and Eats Pass members in select cities in Latin America, Canada, and the U.S. can order groceries through Uber and the Uber Eats app, with orders fulfilled by Cornershop. Also launched Uber Connect in more than 170 cities, which allows consumers to send small packages to friends and family via UberX drivers and has completed nearly 3 million trips since mid-April.
  • Signed Capital One partnership: Signed a new partnership to offer Uber Eats benefits for both Capital One Venture and Savor cardholders in the U.S., including 5x miles and 5% Cash Back respectively, on all Uber Eats purchases through January 31, 2021.

Other Segments, Platform and Corporate

  • Freight launched in-app bidding: Launched in-app bidding, which increases pricing flexibility and improves our market clearing abilities.
  • Freight signed TMS integration deals: Signed BluJay and Oracle TMS partnerships which enables direct API integration with our shippers allowing us to provide real time pricing and tendering capabilities; spot revenue generated through API integrations grew 200%+ QoQ in Q2.
  • ATG restarted test track and road operations: Following a brief period of simulation-only development, Uber ATG restarted test track and public road operations for its self-driving vehicles in Pittsburgh this quarter after implementing a series of measures consistent with expert guidance to help mitigate the risk of spread for COVID-19.
  • Extended strategic alliance with American Express: Extended our multi-year strategic alliance with American Express in the U.S., which offers up to $200 per year in Uber Cash to eligible U.S. Consumer Platinum Card Members.
  • Uber Rewards surpassed 35 million members: Uber Rewards surpassed 35 million members across its 6 markets: U.S., Brazil, Mexico, France, Australia, and New Zealand.
  • Expanded Uber for Business to new products and use cases; Health growing quickly: Launched 6 new Eats for Business markets and expanded beyond traditional corporate travel to include meals and new commute products. Uber Health continued strong growth throughout the quarter, up over 100% year-over-year for the week ended June 30th.
  • Completed Senior Notes Offering: Successfully raised $1.0 billion in senior unsecured notes, due 2025. We intend to use the proceeds from this offering primarily for working capital and other general corporate purposes, which may include potential acquisitions and strategic transactions.
  • Continued COVID-19 Response Efforts: Delivered 10 million free rides, meals, and freight loads around the world and launched COVID-19 relief programs in over 53 countries. In total, we partnered with more than 200 organizations globally, including the World Central Kitchen, Feeding America, International Rescue Committee, the UK national health service, and the Gates Foundation. We donated over 15 million pounds of free meals and PPE to underserved and vulnerable populations through food banks. All told, we committed $45 million to support front-line workers, drivers and delivery people, and communities in need, such as survivors of domestic violence and people with compromised immune systems who were unable to receive their medication. The Restaurant Contribution feature that we built into the Uber Eats app, allowing customers to add a small donation to the restaurant on top of their order, has put more than $17 million directly into the bank accounts of restaurants around the world.

Recent Developments

  • Agreed to acquire Postmates: Entered into an agreement to acquire Postmates for approximately $2.65 billion in an all-stock transaction, bringing together Uber’s global Mobility and Delivery platform with Postmates’ distinctive delivery business in the U.S.
  • Closed purchase of Cornershop: Completed previously announced purchase of a controlling interest in Cornershop in all jurisdictions other than Mexico; now offering customers in select cities in Latin America, the U.S., and Canada the ability to order groceries through both the Uber and Uber Eats apps.
  • Acquired Routematch: Acquired Routematch, a leading provider of Software / SaaS solutions to over 500 North American and Australian public transportation systems, bringing together Uber’s expertise in on-demand, global mobility technologies with Routematch’s proven capabilities across paratransit, payments, fixed-route tools, and trip planning services.
  • Signed Agreement to Acquire Autocab: Announced agreement to acquire Autocab, a UK technology company that provides taxi and private hire operators with booking and dispatch software and related technology, and also connects them with trips through their iGo marketplace. This acquisition will allow us to take another step forward in our relationship with taxis, and in our strategy to offer software-as-a-service.

Webcast and conference call information

A live audio webcast of our second quarter 2020 earnings release call will be available at https://investor.uber.com/, along with the earnings press release and slide presentation. The call begins on August 6, 2020 at 1:30 PM (PT) / 4:30 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, including SEC filings, investor events, press and earnings releases, and blogs, on our investor relations website (https://investor.uber.com/).

About Uber

Uber’s mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 15 billion trips later, we’re building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.

Forward-Looking Statements

This press release contains forward-looking statements regarding our future business expectations which involve risks and uncertainties. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “hope,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors relate to, among others: developments in the COVID-19 pandemic and the resulting impact on our business and operations, competition, managing our growth and corporate culture, financial performance, investments in new products or offerings, our ability to attract drivers, consumers and other partners to our platform, our brand and reputation and other legal and regulatory developments and proceedings, particularly with respect to our relationships with drivers and delivery persons. For additional information on other potential risks and uncertainties that could cause actual results to differ from the results predicted, please see our Annual Report on Form 10-K for the year ended December 31, 2019 and subsequent Form 10-Qs and Form 8-Ks filed with the Securities and Exchange Commission. All information provided in this release and in the attachments is as of the date of this press release and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.

Non-GAAP Financial Measures

To supplement our financial information, which is prepared and presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we use the following non-GAAP financial measures: Adjusted Net Revenue; Mobility Adjusted Net Revenue; Delivery Adjusted Net Revenue; YoY % Growth at constant currency & ex-Driver appreciation award; YoY % Mobility Growth at constant currency & ex-Driver appreciation award; YoY % Delivery Growth at constant currency & ex-Driver appreciation award; Adjusted EBITDA; and Adjusted EBITDA margin as a percentage of ANR, as well as, revenue and Adjusted Net Revenue growth in constant currency. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results.

We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.

There are a number of limitations related to the use of non-GAAP financial measures. In light of these limitations, we provide specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.

For more information on these non-GAAP financial measures, please see the sections titled “Key Terms for Our Key Metrics and Non-GAAP Financial Measures,” “Definitions of Non-GAAP Measures” and “Reconciliations of Non-GAAP Measures” included at the end of this release.

UBER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

 

 

 

As of December 31, 2019

 

As of June 30, 2020

Assets

 

 

 

 

Cash and cash equivalents

 

$

10,873

 

 

$

6,754

 

Short-term investments

 

440

 

 

1,033

 

Restricted cash and cash equivalents

 

99

 

 

123

 

Accounts receivable, net

 

1,214

 

 

604

 

Prepaid expenses and other current assets

 

1,299

 

 

1,148

 

Total current assets

 

13,925

 

 

9,662

 

Restricted cash and cash equivalents

 

1,095

 

 

1,224

 

Collateral held by insurer

 

1,199

 

 

1,021

 

Investments

 

10,527

 

 

8,813

 

Equity method investments

 

1,364

 

 

1,062

 

Property and equipment, net

 

1,731

 

 

1,846

 

Operating lease right-of-use assets

 

1,594

 

 

1,441

 

Intangible assets, net

 

71

 

 

533

 

Goodwill

 

167

 

 

2,518

 

Other assets

 

88

 

 

120

 

Total assets

 

$

31,761

 

 

$

28,240

 

Liabilities, mezzanine equity and equity

 

 

 

 

Accounts payable

 

$

272

 

 

$

253

 

Short-term insurance reserves

 

1,121

 

 

1,248

 

Operating lease liabilities, current

 

196

 

 

188

 

Accrued and other current liabilities

 

4,050

 

 

4,202

 

Total current liabilities

 

5,639

 

 

5,891

 

Long-term insurance reserves

 

2,297

 

 

2,161

 

Long-term debt, net of current portion

 

5,707

 

 

6,691

 

Operating lease liabilities, non-current

 

1,523

 

 

1,525

 

Other long-term liabilities

 

1,412

 

 

1,451

 

Total liabilities

 

16,578

 

 

17,719

 

Mezzanine equity

 

 

 

 

Redeemable non-controlling interests

 

311

 

 

282

 

Equity

 

 

 

 

Common stock

 

 

 

 

Additional paid-in capital

 

30,739

 

 

31,267

 

Accumulated other comprehensive loss

 

(187

)

 

(644

)

Accumulated deficit

 

(16,362

)

 

(21,073

)

Total Uber Technologies, Inc. stockholders’ equity

 

14,190

 

 

9,550

 

Non-redeemable non-controlling interests

 

682

 

 

689

 

Total equity

 

14,872

 

 

10,239

 

Total liabilities, mezzanine equity and equity

 

$

31,761

 

 

$

28,240

 

Contacts

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

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