Uber Announces Results for Third Quarter 2020

Revenue of $3.1 billion, declining 18% year-over-year or 17% on a constant currency basis

Mobility Adjusted EBITDA of $245 million

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

Financial Highlights for Third Quarter 2020

Gross Bookings declined to $14.7 billion, down 10% year-over-year, or 8% on a constant currency basis, with Mobility Gross Bookings declining 50% and Delivery Gross Bookings growing 135% year-over-year, respectively, on a constant currency basis.
Revenue declined 18% year-over-year, or 17% on a constant currency basis. Mobility Revenue declined 53% year-over-year and Delivery Revenue grew 125% year-over-year.
Adjusted Net Revenue (“ANR”) declined 20% year-over-year, Mobility ANR declined 52% year-over-year and Delivery ANR grew 190% year-over-year. Adjusted Net Revenue and segment Adjusted Net Revenue excludes the impact of COVID-19 response initiatives.
Net loss attributable to Uber Technologies, Inc. was $1.1 billion, which includes $183 million in stock-based compensation expense.
Mobility Adjusted EBITDA of $245 million, improved +$195 million quarter-over-quarter (-$386 million year-over-year), and delivered 17.9% margin as a percentage of Mobility ANR.
Delivery Adjusted EBITDA loss of $(183) million, improved +$49 million quarter-over-quarter (+$133 million year-over-year), and delivered (16.1)% margin as a percentage of Delivery ANR.
Adjusted EBITDA loss of $625 million, up $40 million year-over-year, and down $212 million quarter-over-quarter, and 22.2% margin as a percentage of ANR. Adjusted EBITDA excludes the impact of COVID-19 response initiatives.
Unrestricted cash, cash equivalents and short-term investments were $7.3 billion at the end of the third quarter.
COVID-19 response initiatives had an impact on GAAP net loss of $18 million, including an impact on GAAP revenue of $2 million and an impact on GAAP cost of revenue of $16 million (details and reconciliation below).

“Despite an uneven pandemic response and broader economic uncertainty, our global scope, diversification, and the team’s tireless execution delivered steadily improving results, with total company Gross Bookings down just 6% year-on-year in September,” said Dara Khosrowshahi, CEO. “Mobility Gross Bookings nearly doubled from Q2 levels and Delivery surged again to 135% year-on-year growth thanks to an increasing pace of innovation, which saw us launch new industry-leading safety technology; extend delivery offerings into groceries and prescriptions; bring Uber Green to more than 50 cities; and expand both Uber Pass and Eats Pass membership plans.”

“As consolidated growth returns, it will return to a more profitable foundation,” said Nelson Chai, CFO. “Our Mobility segment generated $245 million in Adjusted EBITDA, up nearly $200 million quarter-over-quarter, while we also improved Delivery Adjusted EBITDA margins by more than 10 percentage points. Through continued strong execution and cost discipline, we remain confident in our ability to achieve quarterly Adjusted EBITDA profitability before the end of 2021.”

Third Quarter 2020 Financial and Operational Highlights

	Three Months Ended September 30,
(In millions, except percentages)	2019			2020			% Change		% Change (Constant Currency ⁽¹⁾)

Monthly Active Platform Consumers (“MAPCs”)	103			78			(24	)%
Trips	1,770			1,150			(35	)%
Gross Bookings	$	16,465		$	14,745		(10	)%	(8	)%
GAAP Revenue	$	3,813		$	3,129		(18	)%	(17	)%
Adjusted Net Revenue ⁽¹⁾	$	3,533		$	2,813		(20	)%	(19	)%
GAAP Net loss attributable to Uber Technologies, Inc. ⁽²⁾	$	(1,162	)	$	(1,089	)	6	%
Mobility Adjusted EBITDA	$	631		$	245		(61	)%
Delivery Adjusted EBITDA	$	(316	)	$	(183	)	42	%
Adjusted EBITDA ⁽¹⁾	$	(585	)	$	(625	)	(7	)%

⁽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 $401 million and $183 million in Q3 2019 and Q3 2020, respectively.

Results by Offering and Segment

Gross Bookings

	Three Months Ended September 30,
(In millions, except percentages)	2019		2020		% Change		% Change (Constant Currency)

Gross Bookings:
Mobility	$	12,554	$	5,905	(53	)%	(50	)%
Delivery	3,658		8,550		134	%	135	%
Freight	223		290		30	%	30	%
ATG and Other Technology Programs	—		—		**		**
All Other (formerly Other Bets)	30		—		**		**
Total	$	16,465	$	14,745	(10	)%	(8	)%
** Percentage not meaningful.

GAAP Revenue

	Three Months Ended September 30,
(In millions, except percentages)	2019		2020		% Change		% Change (Constant Currency)

Revenue:
Mobility	$	2,895	$	1,365	(53	)%	(51	)%
Delivery	645		1,451		125	%	124	%
Freight	218		288		32	%	32	%
ATG and Other Technology Programs ⁽¹⁾	17		25		47	%	47	%
All Other (formerly Other Bets)	38		—		**		**
Total	$	3,813	$	3,129	(18)	%	(17)	%
⁽¹⁾ Including $17 million and $25 million collaboration revenue from Toyota recognized in Q3 2019 and Q3 2020, respectively.
** Percentage not meaningful.

Adjusted Net Revenue ⁽¹⁾

	Three Months Ended September 30,
(In millions, except percentages)	2019		2020		% Change		% Change (Constant Currency ⁽¹⁾)

Adjusted Net Revenue:
Mobility	$	2,868	$	1,365	(52	)%	(51	)%
Delivery	392		1,135		190	%	191	%
Freight	218		288		32	%	32	%
ATG and Other Technology Programs ⁽²⁾	17		25		47	%	47	%
All Other (formerly Other Bets)	38		—		**		**
Total	$	3,533	$	2,813	(20	)%	(19	)%

⁽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 “All Other Adjusted Net Revenue” (prior to the second quarter of 2020 our Other Bets segment) 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⁾		Including $17 million and $25 million collaboration revenue from Toyota recognized in Q3 2019 and Q3 2020, respectively.
**		Percentage not meaningful.

Net Loss, Adjusted EBITDA and Segment Adjusted EBITDA

Net loss attributable to Uber Technologies, Inc. was $1.2 billion in Q3 2019, which includes $401 million in stock-based compensation expense. Net loss attributable to Uber Technologies, Inc. was $1.1 billion in Q3 2020, which includes $183 million in stock-based compensation expense.

	Three Months Ended September 30,
(In millions, except percentages)	2019			2020			% Change

Segment Adjusted EBITDA:
Mobility	$	631		$	245		(61	)%
Delivery	(316		)	(183		)	42	%
Freight	(81		)	(73		)	10	%
ATG and Other Technology Programs	(124		)	(104		)	16	%
All Other (formerly Other Bets)	(72		)	—			**
Corporate G&A and Platform R&D ^{(1), (2)}	(623		)	(510		)	18	%
Adjusted EBITDA⁽³⁾	$	(585	)	$	(625	)	(7	)%

**		Percentage not meaningful.
⁽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 September 30,
(In millions, except percentages)	2019		2020		% Change

United States and Canada	$	2,407	$	1,674	(30	)%
Latin America (“LatAm”)	527		320		(39	)%
Europe, Middle East and Africa (“EMEA”)	534		641		20	%
Asia Pacific (“APAC”)	345		494		43	%
Total	$	3,813	$	3,129	(18	)%

Operating Highlights for the Third Quarter 2020

Mobility

Gross Bookings recovery varied by Region: Q3 Mobility Gross Bookings recovered 94% QoQ (down 53% YoY). In constant currency terms, Q3 Mobility Gross Bookings were down 50% YoY, with EMEA down 36% YoY, LatAm down 40% YoY, APAC down 52% YoY, and US & Canada down 59% YoY; US lagged in the recovery with Gross Bookings up 75% QoQ (down 60% YoY), with New York City well ahead (up 103% QoQ and down 47% YoY), and West Coast markets well below (San Francisco, Los Angeles and Seattle up 54%-76% QoQ and down 71-82% YoY).
Adjusted Net Revenue down 51% YoY (constant currency): ANR take rate of 23.1% was up 30bps YoY but down 290bps QoQ; US driver supply improved through Q3, which was offset by the US lagging international markets in the recovery.
Achieved $245M in Adjusted EBITDA profitability: Mobility segment Adjusted EBITDA expanded from the Q2’20 bottom by $195 million QoQ to $245 million, driven by Gross Bookings growth of 94% QoQ and fixed cost reductions more than offsetting the 290bps QoQ take rate headwind.
Continued innovation in safety: Indefinitely extended our “No Mask. No Ride” policy which requires Riders and Drivers to wear a mask to use Uber. Implemented Mask Verification technology for riders, in addition to drivers, requiring riders who have been flagged for not wearing a mask to verify they are wearing one by taking a selfie with a mask on. Partnered with Unilever in EMEA, Clorox in US & Canada, SC Johnson in LatAm, and Dettol in APAC to provide access to sanitizing equipment to drivers and delivery drivers.
Deepened Transit capabilities: Acquired Routematch, a leading provider of Software / SaaS solutions to over 500 North American and Australian public transportation systems; launched a few of Routematch’s largest programs to date in Boston (MBTA), Dallas (DART), Charlotte (CATS) to support paratransit systems. Launched ‘Uber and Transit’ in Sydney and Chicago, enabling riders to plan and execute multimodal trips that combine UberX with Public Transportation on a single journey; expanded transit Journey Planning to 31 total cities.
Expanded Uber Green: Introduced option to book an electric or hybrid vehicle in 15 US and Canadian cities. Uber Green results in up to 44% fewer carbon emissions than taking a gas-powered personal car ride. This option is now available in 50+ cities globally.
Signed new automaker EV partnerships: Partnered with GM in the US and Canada, and Renault-Nissan across European cities in the UK, France, Netherlands, and Portugal to pass on significant savings to drivers interested in transitioning to an EV.
Launched Uber Rent: Following successful global pilots, launched Uber Rent in the UK, a new feature that allows customers to reserve a rental car in the Uber app.

Delivery

Gross Bookings growth / momentum: Delivery Gross Bookings of $8.6 billion accelerated to 135% year-over-year on a constant currency basis, compared to 113% year-over-year in Q2’20 and 54% year-over-year in Q1’20.
- Across the board strength, with triple digit YoY growth in US & Canada, EMEA, APAC and LatAm in Q3’20
- Several large markets outpaced Delivery segment overall growth, with the UK and Canada growing close to 200% year-over-year, and Japan and Spain growing in excess of 300% year-over-year
- France Delivery Gross Bookings continued to grow over 100% YoY despite ongoing Mobility recovery in the market, with month-over-month growth in every month of the quarter
- Domestically, New York City, which was the most recovered major Mobility market, outpaced national growth, with Delivery Gross Bookings up over 150% YoY, with month-over-month growth in every month of the quarter

Improved Segment Adjusted EBITDA: Delivery Adjusted EBITDA loss decreased to $(183) million, improving $49 million quarter-over-quarter and $133 million year-over-year or by 64 percentage points as a percent of ANR.
Grew restaurant selection: Grew active partnered restaurants on Uber Eats by over 70% year-over-year. New SMB restaurant additions during the quarter also grew over 60% year-over-year.
Introduced new ordering options: Introduced two new ordering options for merchants and consumers: the ability for restaurants to add online ordering fulfilled by Uber Eats directly to their own websites, and a new offering for all US restaurants to add contactless dine-in ordering with Uber Eats using click-to-print QR codes.
Expanded Grocery offering: Grocery Gross Bookings exceeded $1 billion annualized run-rate in September with the Grocery offering now live in over 10 countries, including Australia, UK, Japan, France, Taiwan, Canada, Chile & Brazil. Launched Cornershop integration to expand access to Grocery across the Americas. Signed several key partnerships including, Southeastern Grocers (US), Red Apple Group (US), Sainsbury’s (UK), Cencosud (LatAm), MaxValu (Japan), and expanded the Carrefour relationship (Brazil and Chile, in addition to France).
Launched prescription delivery pilots: Signed a deal with prescription delivery service NimbleRx, to pilot Uber Direct for its pilot prescription drug delivery in Dallas and Seattle.
Expanded marketing: Launched the “Tonight I’ll be Eating” campaign in the US, Uber Eats’ largest US & Canada campaign to-date and a fully integrated effort that will run across TV, OLV, OOH, Audio/Radio, Paid Social and Display.
Launched ads nationwide: Ads launched nationwide in the US and was adopted by nearly 30K active restaurants in Q3, with early positive engagement from enterprise restaurants including Subway and Panera Bread.

Other Segments, Platform and Corporate

Redesigned Uber App Update: Continued global rollout on iOS, whereby the Uber Eats delivery experience is integrated next to on-demand trips, generating incremental user and revenue growth for Eats without cannibalization of Rides.
Exceeded 1 million paid subscribers: Surpassed 1 million paid Uber Pass + Eats Pass subscribers during Q3; Uber Pass now live in the US, Brazil, and Mexico; Eats Pass now live in the US, Taiwan, South Africa, Canada, and Japan.
New Freight offerings for enterprise shippers: Freight has seen growth in the adoption of new service offerings designed to provide shippers access to capacity in volatile markets. Load volume tendered via API grew triple digits QoQ, through new shippers integrations and increasing engagement with existing shippers. Additionally, Freight announced the launch of Uber Freight Enterprise, which allows shippers to directly place and control their loads within the Uber Freight Marketplace and Uber Freight Link which allows shippers to directly and digitally connect to their carrier network.
Freight drove continued improvement in operating efficiency through automation: Freight was named one of the top carriers for meeting customer visibility needs on Fourkites, due to partnerships with KeepTruckin, Skybitz, and Spireon, along with other automated tracking efforts.
ATG vehicles on the road in DC: We maintained our focus on steadily building self-driving technology to serve a spectrum of cities, returning our test vehicles to the streets of Washington, DC in addition to continuing operations in the Pittsburgh market. We also notched steps towards delivering trustworthy and scalable performance at a more effective future production cost with a transition to an upgraded sensor suite on our Volvo XC90 fleet, and with continued work with Toyota on future mobility platforms.
Completed $500 million senior notes offering: Completed $500 million offering of 6.25% Senior Notes due 2028. We used the net proceeds from this offering, along with cash on hand, to redeem all of our 7.5% Senior Notes due 2023, of which $500 million aggregate amount was outstanding as of the end of the third quarter. The redemption was subsequently completed in October 2020.
Launched Our Road to Zero Emissions Commitment: Announced commitment to becoming a fully zero-emission platform by 2040, and an earlier commitment to transition 100% of rides to electric vehicles (EVs) in US, Canadian, and European cities by 2030. In addition to our platform goals, we committed to achieving net-zero emissions from our corporate operations by 2030.
ESG Report: Published our inaugural environmental, social and governance (ESG) report.
Indian Parliament passed independent contractor legislation: New legislation secures nationwide independent contractor codification, allowing for a third way of work nationally in India.

Recent Developments

Awarded 18-month license to operate in London: Uber granted 18 month London License, found “fit and proper” to operate.
Announced $500M investment in Freight and divested European Freight business: Investor group led by Greenbriar Equity Group committed to invest $500M in a Series A investment in Uber Freight, Uber’s logistics arm; Divested European Freight business to Sennder, a Berlin-based digital freight brokerage.
Agreed to form SKT Joint Venture in South Korea: Uber entered into agreement to form a joint venture with T Map Mobility, an SKT company, to drive growth in the e-hailing market in Korea. T Map is the largest mobility platform in Korea with around 13 million monthly active users. T Map Taxi is the nation’s second largest taxi hailing service with 200,000 registered drivers and 750,000 active monthly users. The joint venture will promote the e-hailing business in Korea by combining T Map Mobility’s network of drivers and mapping technology with Uber’s ride hailing technology and global operations expertise.
Proposition 22 Passes: California voters passed Proposition 22 by a significant margin, which protects the ability of app-based rideshare and delivery drivers to continue working as independent contractors, while adding important new benefits and protections. Final certification of the election is expected in the coming weeks.

Webcast and conference call information

A live audio webcast of our third 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 November 5, 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, 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; 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.

Contacts

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

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