Uber Announces Results for Third Quarter 2022

Gross Bookings grew 26% year-over-year and 32% year-over-year on a constant currency basis

Mobility Gross Bookings, Adjusted EBITDA and Adjusted EBITDA margin at all-time quarterly highs

Operating cash flow of $432 million; Free cash flow of $358 million

SAN FRANCISCO–(BUSINESS WIRE)–Uber Technologies, Inc. (NYSE: UBER) today announced financial results for the quarter ended September 30, 2022.

Financial Highlights for Third Quarter 2022

Gross Bookings grew 26% year-over-year (“YoY”) to $29.1 billion, or 32% on a constant currency basis, with Mobility Gross Bookings of $13.7 billion (+38% YoY or +45% YoY constant currency) and Delivery Gross Bookings of $13.7 billion (+7% YoY or +13% YoY constant currency). Trips during the quarter grew 19% YoY to 1.95 billion, or approximately 21 million trips per day on average.
Revenue grew 72% YoY to $8.3 billion, or 81% on a constant currency basis, with Revenue growth significantly outpacing Gross Bookings growth due to the acquisition of Transplace by Uber Freight and a change in the business model for our UK Mobility business.
Net loss attributable to Uber Technologies, Inc. was $1.2 billion, which includes a $512 million net headwind (pre-tax) primarily due to net unrealized losses related to the revaluations of Uber’s equity investments. Additionally, net loss includes $482 million in stock-based compensation expense.
Adjusted EBITDA of $516 million, up $508 million YoY. Adjusted EBITDA margin as a percentage of Gross Bookings was 1.8%, up from 0% in Q3 2021.
Net cash provided by operating activities was $432 million, and free cash flow, defined as net cash flows from operating activities less capital expenditures, was $358 million.
Unrestricted cash and cash equivalents were $4.9 billion at the end of the third quarter.

“Our global scale and unique platform advantages are working together to drive more profitable growth, with Gross Bookings growth of 32% and record Adjusted EBITDA of $516 million,” said Dara Khosrowshahi, CEO. “Even as the macroeconomic environment remains uncertain, Uber’s core business is stronger than ever.”

“Strong demand for our offerings, better marketplace efficiency, and our asset-light platform helped to deliver Adjusted EBITDA well above our guidance, even as foreign exchange and inflationary headwinds impact all global businesses,” said Nelson Chai, CFO. “We remain focused on excellent execution and disciplined cost management to deliver on our growth and profitability commitments for the coming years.”

Outlook for Q4 2022

For Q4 2022, we anticipate:

Gross Bookings to grow 23% to 27% YoY on a constant currency basis, with an expected 7 percentage point YoY currency headwind, translating to a range of $30.0 billion to $31.0 billion
Adjusted EBITDA of $600 million to $630 million

Financial and Operational Highlights for Third Quarter 2022

	Three Months Ended September 30,
(In millions, except percentages)	2021			2022			% Change		% Change (Constant Currency ⁽¹⁾)

Monthly Active Platform Consumers (“MAPCs”)		109			124		14	%
Trips		1,641			1,953		19	%
Gross Bookings	$	23,113		$	29,119		26	%	32	%
Revenue	$	4,845		$	8,343		72	%	81	%
Net loss attributable to Uber Technologies, Inc. ⁽²⁾	$	(2,424	)	$	(1,206	)	50	%
Adjusted EBITDA ⁽¹⁾	$	8		$	516		**
Net cash provided by operating activities ⁽³⁾	$	614		$	432		(30	)%
Free cash flow ^{(1), (3)}	$	524		$	358		(32	)%

⁽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 $281 million and $482 million in Q3 2021 and Q3 2022, respectively. Net loss also includes a $2.0 billion net headwind (pre-tax) and a $512 million net headwind (pre-tax) from revaluations of Uber’s equity investments in Q3 2021 and Q3 2022, respectively.
⁽³⁾		Net cash provided by operating activities and free cash flow in Q3 2021 benefited by a net amount of $1.0 billion as a result of significant cash impacts related to a legacy auto insurance transfer.
**		Percentage not meaningful.

Results by Offering and Segment

Gross Bookings

	Three Months Ended September 30,
(In millions, except percentages)	2021		2022		% Change		% Change (Constant Currency)

Gross Bookings:
Mobility	$	9,883	$	13,684	38	%	45	%
Delivery		12,828		13,684	7	%	13	%
Freight⁽¹⁾		402		1,751	**		**
Total	$	23,113	$	29,119	26	%	32	%

⁽¹⁾		Q3 2022 Gross Bookings includes contributions from the acquisition of Transplace which closed on November 12, 2021.
**		Percentage not meaningful.

Revenue

	Three Months Ended September 30,
(In millions, except percentages)	2021		2022		% Change		% Change (Constant Currency)

Revenue:
Mobility ⁽¹⁾	$	2,205	$	3,822	73	%	83	%
Delivery ⁽²⁾		2,238		2,770	24	%	33	%
Freight ⁽³⁾		402		1,751	**		**
Total	$	4,845	$	8,343	72	%	81	%

⁽¹⁾		Mobility Revenues in Q3 2021 benefited from a $123 million accrual release for the resolution of historical claims in the UK relating to the classification of drivers. Mobility Revenue in Q3 2022 benefited by a net amount of $1.1 billion from business model changes in the UK.
⁽²⁾		Delivery Revenue in Q3 2021 and Q3 2022 benefited from business model changes in some countries that classify certain payments and incentives as cost of revenue by $519 million and $683 million, respectively.
⁽³⁾		Freight Revenue in Q3 2022 includes contributions from the acquisition of Transplace which closed on November 12, 2021.
**		Percentage not meaningful.

Take Rates

	Three Months Ended September 30,
	2021		2022

Mobility ⁽¹⁾	22.3	%	27.9	%
Delivery ⁽²⁾	17.4	%	20.2	%
Total	21.0	%	28.7	%

⁽¹⁾		Mobility Take Rate in Q3 2022 includes a 770 bps net benefit from business model changes in the UK. Excluding this impact, Mobility Take Rate would be 20.2%. Mobility Take Rate was also adversely impacted by pass-through fuel surcharges implemented through Q3 2022 in various markets globally.
⁽²⁾		Delivery Take Rate in Q3 2021 and Q3 2022 benefited from business model changes in some countries that classify certain payments and incentives as cost of revenue by 400 bps and 500 bps, respectively.

Adjusted EBITDA and Segment Adjusted EBITDA

	Three Months Ended September 30,
(In millions, except percentages)	2021			2022			% Change

Segment Adjusted EBITDA:
Mobility	$	544		$	898		65	%
Delivery		(12	)		181		**
Freight		(35	)		1		**
Corporate G&A and Platform R&D ^{(1), (2)}		(489	)		(564	)	(15	)%
Adjusted EBITDA⁽³⁾	$	8		$	516		**

⁽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.

Revenue by Geographical Region

	Three Months Ended September 30,
(In millions, except percentages)	2021		2022		% Change

United States and Canada (“US&CAN”) ⁽¹⁾	$	2,648	$	5,000	89	%
Latin America (“LatAm”)		390		518	33	%
Europe, Middle East and Africa (“EMEA”) ⁽²⁾		1,064		1,878	77	%
Asia Pacific (“APAC”)		743		947	27	%
Total	$	4,845	$	8,343	72	%

⁽¹⁾		US&CAN Revenue in Q3 2022 includes contributions from the acquisition of Transplace which closed on November 12, 2021.
⁽²⁾		EMEA Revenue in Q3 2022 benefited by a net amount of $1.1 billion from Mobility business model changes in the UK.

Financial Highlights for the Third Quarter 2022 (continued)

Mobility

Gross Bookings of $13.7 billion: Mobility Gross Bookings grew 45% YoY on a constant currency basis. On a sequential basis, Mobility Gross Bookings grew 2% quarter-over-quarter (“QoQ”), with growth in all geographic regions.
Revenue of $3.8 billion: Mobility Revenue grew 73% YoY and 8% QoQ. The YoY increase was primarily driven by a $1.1 billion benefit related to a UK business model change that classifies most driver payments and incentives as cost of revenue. Mobility Take Rate of 27.9% increased 560 bps YoY and 130 bps QoQ. The UK business model change impacting revenue represented a 770 bps net benefit to Take Rate in the quarter. Additionally, Mobility Take Rate was adversely impacted by pass-through fuel surcharges implemented through Q3 2022 in various markets globally.
Adjusted EBITDA of $898 million: Mobility Adjusted EBITDA increased $354 million YoY and $127 million QoQ. Mobility Adjusted EBITDA margin was 6.6% of Gross Bookings compared to 5.5% in Q3 2021 and 5.8% in Q2 2022. Mobility Adjusted EBITDA margin improvement YoY was primarily driven by better cost leverage from higher volume, and a meaningful reduction in driver supply investments.

Delivery

Gross Bookings of $13.7 billion: Delivery Gross Bookings grew 13% YoY on a constant currency basis. Delivery Gross Bookings in US & Canada were up 19% YoY and in all other markets were up 8% YoY on a constant currency basis.
Revenue of $2.8 billion: Delivery Revenue grew 24% YoY and 3% QoQ. Take Rate of 20.2% grew 280 bps YoY and grew 80 bps QoQ. Business model changes in some countries that classify certain payments and incentives as cost of revenue benefited Delivery Take Rate by 500 bps in the quarter (compared to 400 bps benefit in Q3 2021 and 510 bps benefit in Q2 2022).
Adjusted EBITDA of $181 million: Delivery Adjusted EBITDA grew $193 million YoY and $82 million QoQ, driven by higher volumes, increased Ads revenue, and improved network efficiencies. Delivery Adjusted EBITDA margin as a percentage of Gross Bookings reached 1.3%, compared to (0.1)% in Q3 2021 and 0.7% in Q2 2022.

Freight

Revenue of $1.8 billion: Freight Revenue grew 336% YoY and declined 4% QoQ. Freight Revenue includes contributions from the acquisition of Transplace which closed on November 12, 2021.
Adjusted EBITDA of $1 million: Freight Adjusted EBITDA grew $36 million YoY but declined $4 million QoQ. Freight Adjusted EBITDA margin as a percentage of Gross Bookings improved 8.8 percentage points YoY to 0.1% driven by increased marketplace efficiency on our digital platform and strong sales momentum in our Transportation Management business.

Corporate

Corporate G&A and Platform R&D: Corporate G&A and Platform R&D expenses of $564 million, compared to $489 million in Q3 2021, and $511 million in Q2 2022. 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.

GAAP and Non-GAAP Costs and Operating Expenses

Cost of revenue excluding D&A: GAAP cost of revenue was $5.2 billion. Non-GAAP cost of revenue was also $5.2 billion, representing 17.7% of Gross Bookings, compared to 10.1% and 17.7% in Q3 2021 and Q2 2022, respectively. On a YoY basis, non-GAAP cost of revenue as a percentage of Gross Bookings increased due to the classification of certain Delivery and Mobility payments as cost of revenue attributable to business model changes in some countries and the acquisition of Transplace.
GAAP and Non-GAAP operating expenses (Non-GAAP operating expenses exclude certain amounts as further detailed in the “Reconciliations of Non-GAAP Measures” section):
- Operations and support: GAAP operations and support was $617 million. Non-GAAP operations and support was $576 million, representing 2.0% of Gross Bookings, compared to 1.9% and 2.0% in Q3 2021 and Q2 2022, respectively. On a YoY basis, non-GAAP operations and support as a percentage of Gross Bookings increased due to higher headcount costs and higher driver background check costs.
- Sales and marketing: GAAP sales and marketing was $1.2 billion. Non-GAAP sales and marketing was $1.1 billion, representing 3.9% of Gross Bookings, compared to 5.0% and 4.1% in Q3 2021 and Q2 2022, 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 carry lower associated sales and marketing costs, while Delivery sales and marketing benefited from lower promotional spend.
- Research and development: GAAP research and development was $760 million. Non-GAAP research and development was $468 million, representing 1.6% of Gross Bookings, compared to 1.5% and 1.5% in Q3 2021 and Q2 2022, respectively.
- General and administrative: GAAP general and administrative was $908 million. Non-GAAP general and administrative was $488 million, representing 1.7% of Gross Bookings, compared to 2.0% and 1.6% in Q3 2021 and Q2 2022, respectively. On a YoY basis, non-GAAP general and administrative as a percentage of Gross Bookings decreased due to improved fixed cost leverage.

Operating Highlights for the Third Quarter 2022

Platform

Monthly Active Platform Consumers (“MAPCs”) reached 124 million: MAPCs grew 14% YoY and 2% QoQ to 124 million, with Mobility MAPCs up 22% YoY and 4% QoQ, driven by continued improvement in consumer activity for our Mobility offerings.
Trips of 1.95 billion: Trips on our platform grew 19% YoY and 4% QoQ, with Mobility trips up 25% YoY and 6% QoQ and low-single digit YoY growth in Delivery trips.
Membership: Launched a new celebrity campaign in the US to promote Uber One, our single cross-platform membership program, featuring exclusive offers for Uber One members.
Supporting earners: Drivers and couriers earned an aggregate $10.8 billion (excluding tips) during the quarter, with earnings up 25% YoY. In addition, announced a partnership with Marqeta, Mastercard and Branch to power the Uber Pro Card, an enhanced loyalty and payments experience that helps drivers and couriers save on gas, fees, and other expenses, including up to 10% cashback on gas and up to 12% back on EV charging.
Ads: Formally launched Uber’s advertising division and unveiled Journey Ads, an engaging way for brands to connect with riders during their trip. Drizly launched Drizly Ads, making it one of the few alcohol marketplaces where partners can run full funnel advertising. Active advertising merchants during the quarter exceeded 250K.
Motional partnership: Announced a partnership with Motional to deploy autonomous vehicles (AVs) on the Uber network across ride-hail and delivery. This 10-year, multimarket agreement is expected to create one of the largest deployments of AVs on a major ride-hail network and will support Uber’s zero-emissions goal. We will launch a pilot program later this year using Motional’s Hyundai Ioniq 5 AVs, in preparation for fully driverless rides.
Nuro partnership: Announced a 10-year partnership with Nuro, a leading autonomous vehicle company, for autonomous deliveries in Mountain View, California and Houston, Texas starting this fall.

Mobility

Uber Reserve LatAm and MENA expansion: Building on strong traction in other regions for Uber Reserve, expanded product availability to many markets across Latin America including Argentina, Brazil, Chile, Costa Rica, Panama, the Dominican Republic, Paraguay, Puerto Rico and Uruguay. In addition, expanded Reserve feature availability in Saudi Arabia, Qatar and Egypt.
Redesigned Safety Toolkit: Shared our new Uber Safety Toolkit, featuring “Live Help” from an ADT Safety Agent and the expansion of Text to 911.
Electric Vehicle (“EV”) partnerships: Announced partnership with EV provider Moove, bringing 10,000 EVs to London by 2025. In addition, announced partnership with Stellantis and Free2Move in France and bp Pulse in the UK. In October, announced partnership with Splend in Australia, bringing 500 premium EVs to driver partners in NSW to own, with the majority delivered before year end and the remainder arriving in early 2023.
Uber Comfort Electric expansion: Announced a national expansion of Comfort Electric to 24 cities across the US in addition to Vancouver, Canada.
Taxis: Launched Uber Taxi in new markets including New York City; Paris, France; the Ota Ward of Tokyo and Okinawa, Japan; Brussels, Belgium; and Mendoza, Argentina.
Uber Health ANZ launch: Launched Uber Health in Australia and New Zealand, the first markets outside of the US. This expansion enables ANZ healthcare organizations to use the Uber Health dashboard to coordinate and manage transport for patients.

Delivery

Reopening impact: Delivery demonstrated stable consumer, merchant and courier metrics against tough YoY comps as COVID-19 restrictions continued to ease around the world. Delivery MAPCs and basket size grew 3% YoY and 4% YoY respectively, while order frequency was flat YoY. Active merchants grew 11% YoY to nearly 870K in Q3. Globally, active couriers grew 7% YoY, and grew 19% YoY in the US.
Toast and Clover partnerships: Announced industry-first Uber Eats self sign up (“SSU”) product integrations with point-of-sale systems Toast and Clover to help restaurants and other merchants onboard to our platform in a more streamlined way.
US & Canada New Verticals selection: Announced the addition of Office Depot/Office Max and The Body Shop to Uber Eats retail selection in the US and Dollarama in Canada, increasing the availability of more on-demand delivery of must-have items.
UK New Verticals partnerships: Announced that Co-op, the supermarket chain, and Boots, the healthcare retailer, have joined the Uber Eats platform. In addition, we announced that Iceland, the supermarket, has expanded its partnership with Uber Eats to 890 stores across the UK.
Uber Eats Market UK: Announced the launch of Uber Eats Market, a new quick commerce proposition from Uber Eats in the UK, in which we team up with the grocer, Iceland, to offer rapid delivery of everyday grocery essentials. The offering combines Uber Eats’ technology and courier network with Iceland’s expertise in managing the retail stores and inventory.
Leafly cannabis delivery launch: Announced partnership with Leafly in Toronto which will enable Leafly’s licensed cannabis retailers to be added to the Uber Eats marketplace for the purposes of safe, convenient cannabis delivery.

Freight

Uber Freight and Transplace integration: Integrated the Uber Freight and Transplace organizations into a combined team and logistics platform. The combined organization will offer more services and technology advancements to customers while maintaining service, transparency, and accountability.
Record Transportation Management (“TM”) performance: Delivered record TM performance on a trailing-twelve-month basis with our largest ever annual deal value won, highest ever win-rate, and largest ever forward pipeline. Use cases for TM solutions continue to grow amidst supply chain headwinds, as shippers look to efficiently manage, plan and procure within their freight networks.

Equity investments

Zomato stake sale: Completed the sale of our entire equity stake in Zomato for net proceeds of approximately $376 million in August 2022.

Recent developments

UK tax settlement: On October 31, 2022, we resolved all outstanding HMRC VAT claims related to periods prior to our model change on March 14, 2022. We do not expect any significant impact to the income statement as we have adequate reserves recorded as of September 30, 2022, related to this resolution. We expect a cash outflow of approximately GBP 615 million during Q4 2022 for this resolution.

Webcast and conference call information

A live audio webcast of our third quarter ended September 30, 2022 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 1, 2022 at 5:00 AM (PT) / 8:00 AM (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.com/blog) and Twitter accounts (@uber and @dkhos), as a means of disclosing material information and complying with our disclosure obligations under Regulation FD.

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 36 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: the outcome of a tax case before the UK tax authority related to classification as a transportation provider, 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, other legal and regulatory developments, particularly with respect to our relationships with drivers and couriers, developments in the COVID-19 pandemic and the resulting impact on our business and operations, and the impact of the global economy, including rising inflation and interest rates. 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, 2021 and subsequent quarterly reports and other filings filed with the Securities and Exchange Commission from time to time. 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.

Contacts

Investors and analysts: investor@uber.com

Media: press@uber.com

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