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Uber Announces Results for Third Quarter 2019

November 4, 2019 GMT

SAN FRANCISCO--(BUSINESS WIRE)--Nov 4, 2019--

Uber Technologies, Inc. (NYSE: UBER) today announced financial results for the quarter ended September 30, 2019.

“Our results this quarter decisively demonstrate the growing profitability of our Rides segment,” said Dara Khosrowshahi, CEO. “Rides Adjusted EBITDA is up 52% year-over-year and now more than covers our corporate overhead. Revenue growth and take rates in our Eats business also accelerated nicely. We’re pleased to see the impact that continued category leadership, greater financial discipline, and an industry-wide shift towards healthier growth are already having on our financial performance.”

During the third quarter of 2019, following a number of leadership and organizational changes, we reorganized our operations and financial reporting into five segments. Our five operating and reportable segments are: Rides, Eats, Freight, Other Bets, and Advanced Technologies Group (“ATG”) and Other Technology Programs. We are providing Gross Bookings, Revenue, Adjusted Net Revenue, and Adjusted EBITDA for each segment. As a result of our reorganization and additional disclosure, we will no longer be showing Core Platform metrics. We are providing select historical segment information for 2018 and 2019 as well as reconciliations to Core Platform metrics in the supplemental information on our website ( investor.uber.com ) on page 10.

Financial Highlights for Third Quarter 2019

Third Quarter 2019 Financial and Operational Highlights

 

 

Three Months Ended September 30,

 

 

 

 

(in millions, except percentages)

 

2018

 

2019

 

% Change

 

% Change
(Constant Currency (1) )

 

 

 

 

 

 

 

 

 

Monthly Active Platform Consumers (“MAPCs”)

 

82

 

 

103

 

 

26

%

 

 

Trips

 

1,348

 

 

1,770

 

 

31

%

 

 

Gross Bookings

 

$

12,725

 

 

$

16,465

 

 

29

%

 

32

%

Revenue

 

$

2,944

 

 

$

3,813

 

 

30

%

 

31

%

Adjusted Net Revenue (1)

 

$

2,656

 

 

$

3,533

 

 

33

%

 

35

%

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

 

$

(986

)

 

$

(1,162

)

 

(18

)%

 

 

Adjusted EBITDA (1)

 

$

(458

)

 

$

(585

)

 

(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 $64 million in Q3 2018 and $401 million in Q3 2019.

“We expect ANR growth to accelerate again in Q4 and continue to focus on financial discipline. As such, we are improving our full year Adjusted EBITDA guidance by $250 million to a loss of $2.8-2.9 billion,” said Nelson Chai, CFO. “We are also providing additional disclosure, both to deliver more visibility into our business and to further align our internal focus on efficiency with our external reporting.”

Results by Offering and Segment

Our five segments are as follows:

Segment

 

Description

 

 

 

Rides

 

The Rides products connect consumers with Drivers who provide rides in a variety of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis. Rides also includes activity related to our Uber for Business ("U4B"), Financial Partnerships, and Vehicle Solutions offerings.

 

 

 

Eats

 

The Eats offering allows consumers to search for and discover local restaurants, order a meal at the touch of a button, and either pick-up at the restaurant or have the meal delivered reliably and quickly.

 

 

 

Freight

 

Freight connects carriers with shippers on our platform, and gives carriers upfront, transparent pricing and the ability to book a shipment with the touch of a button.

 

 

 

Other Bets

 

The Other Bets segment consists of multiple investment stage offerings. The largest investment within the segment is our New Mobility offering that refers to products that provide consumers with access to rides through a variety of modes, including dockless e-bikes and e-scooters. It also includes Transit, UberWorks and our Incubator group.

 

 

 

ATG and Other

Technology Programs

 

The ATG and Other Technology Programs segment is responsible for the development and commercialization of autonomous vehicle and ridesharing technologies, as well as Uber Elevate.

Quarterly historical financial segment information under our new segment presentation for 2018 and 2019 can be found in the supplemental information on our website ( investor.uber.com ) on page 10. Our historical results in aggregate remain unchanged. Quarterly financial results for the three months ended September 30, 2018 and 2019 are below.

Gross Bookings

 

 

Three Months Ended September 30,

 

 

 

 

(in millions, except percentages)

 

2018

 

2019

 

% Change

 

% Change
(Constant Currency)

 

 

 

 

 

 

 

 

 

Gross Bookings (1):

 

 

 

 

 

 

 

 

Rides

 

$

10,488

 

 

$

12,554

 

 

20

%

 

22

%

Eats

 

2,111

 

 

3,658

 

 

73

%

 

77

%

Freight

 

123

 

 

223

 

 

81

%

 

81

%

Other Bets

 

3

 

 

30

 

 

**

 

 

**

 

Total

 

$

12,725

 

 

$

16,465

 

 

29

%

 

32

%

(1)

Excluding impact of our 2018 Divested Operations.

**

Percentage not meaningful.

Revenue

 

 

Three Months Ended September 30,

 

 

 

 

(in millions, except percentages)

 

2018

 

2019

 

% Change

 

% Change
(Constant Currency)

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

Rides (1)

 

$

2,425

 

 

$

2,895

 

 

19

%

 

21

%

Eats

 

394

 

 

645

 

 

64

%

 

68

%

Freight

 

122

 

 

218

 

 

78

%

 

78

%

Other Bets

 

3

 

 

38

 

 

**

 

 

**

 

ATG and Other Technology Programs (2)

 

 

 

17

 

 

**

 

 

**

 

Total

 

$

2,944

 

 

$

3,813

 

 

30

%

 

31

%

(1)

Including previously reported Other Core Platform Revenue of $54 million and $29 million in Q3 2018 and Q3 2019, respectively.

(2)

Including $17 million collaboration revenue from Toyota recognized in Q3 2019.

**

Percentage not meaningful.

Revenue by Geographical Region

 

 

Three Months Ended September 30,

 

 

(in millions, except percentages)

 

2018

 

2019

 

% Change

 

 

 

 

 

 

 

United States and Canada

 

$

1,734

 

 

$

2,407

 

 

39

%

Latin America ("LATAM")

 

515

 

 

527

 

 

2

%

Europe, Middle East and Africa ("EMEA")

 

431

 

 

534

 

 

24

%

Asia Pacific ("APAC") (1)

 

264

 

 

345

 

 

31

%

Total

 

$

2,944

 

 

$

3,813

 

 

30

%

(1)

Excluding China and, as of May 2018, also excludes Southeast Asia.

Adjusted Net Revenue (1)

 

 

Three Months Ended September 30,

 

 

(in millions, except percentages)

 

2018

 

2019

 

% Change

 

% Change
(Constant Currency (1) )

 

 

 

 

 

 

 

 

 

Adjusted Net Revenue:

 

 

 

 

 

 

 

 

Rides (2)

 

$

2,340

 

 

$

2,868

 

 

23

%

 

24

%

Eats

 

191

 

 

392

 

 

105

%

 

109

%

Freight

 

122

 

 

218

 

 

78

%

 

78

%

Other Bets

 

3

 

 

38

 

 

**

 

 

**

 

ATG and Other Technology Programs (3)

 

 

 

17

 

 

**

 

 

**

 

Total

 

$

2,656

 

 

$

3,533

 

 

33

%

 

35

%

(1)

“Adjusted Net Revenue,” “Rides Adjusted Net Revenue” and “Eats Adjusted Net Revenue” are non-GAAP measures as defined by the SEC. “Freight Adjusted Net Revenue”, “Other Bets Adjusted Net Revenue” and “ATG and Other Technology Programs Adjusted Net Revenue” 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 previously reported Other Core Platform Revenue of $54 million and $29 million in Q3 2018 and Q3 2019, respectively.

(3)

Including $17 million collaboration revenue from Toyota recognized in Q3 2019.

**

Percentage not meaningful.

Segment Adjusted EBITDA

Our Segment Adjusted EBITDA measures replace what was previously reported as Contribution Profit (Loss) and maintains the same definition. Previously reported Core Platform Contribution Profit (Loss) is the sum of Rides Adjusted EBITDA and Eats Adjusted EBITDA, and previously reported Other Bets Contribution Profit (Loss) is the sum of Freight Adjusted EBITDA and Other Bets Adjusted EBITDA. See section entitled “Key Terms for Our Key Metrics and Non-GAAP Financial Measures” for more information.

 

 

Three Months Ended September 30,

 

 

(in millions, except percentages)

 

2018

 

2019

 

% Change

 

 

 

 

 

 

 

Segment Adjusted EBITDA:

 

 

 

 

 

 

Rides

 

$

416

 

 

$

631

 

 

52

%

Eats

 

(189

)

 

(316

)

 

(67

)%

Freight

 

(31

)

 

(81

)

 

(161

)%

Other Bets

 

(12

)

 

(72

)

 

**

 

ATG and Other Technology Programs

 

(132

)

 

(124

)

 

6

%

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

 

(501

)

 

(623

)

 

(24

)%

Impact of 2018 Divested Operations (1)

 

(9

)

 

 

 

100

%

Adjusted EBITDA (3)

 

$

(458

)

 

$

(585

)

 

(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.

**

Percentage not meaningful.

Operating Highlights for the Third Quarter 2019

Platform

Rides

Other Segments

Corporate

Recent Developments

Webcast and conference call information

A live audio webcast of our third quarter 2019 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 4, 2019 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, including SEC filings, investor events, press and earnings releases, and blogs, on our investor relations website ( https://investor.uber.com/ ).

About Uber

Our mission is to ignite opportunity by setting the world in motion.

We revolutionized personal mobility with Ridesharing, and we are leveraging our platform to redefine the massive meal delivery and logistics industries.

We are a technology platform that uses a global network, leading technology, operational excellence and product expertise to power movement from point A to point B. We develop and operate proprietary technology applications supporting a variety of offerings on our platform. We connect consumers with providers of ride services, restaurants and food delivery services, public transportation networks, e-bikes, e-scooters and other personal mobility options. We use this same network, technology, operational excellence and product expertise to connect shippers with carriers in the freight industry. We are developing technologies to provide autonomous driving vehicle solutions to consumers, networks of vertical take-off and landing vehicles and new solutions to solve everyday problems.

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: 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. In addition, other potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on May 13, 2019 and in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, that will be filed following this earnings release. 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; Rides Adjusted Net Revenue; Eats Adjusted Net Revenue and Adjusted EBITDA 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, except share amounts which are reflected in thousands, and per share amounts)

(Unaudited)

 

 

 

As of December 31, 2018

 

As of September 30, 2019

Assets

 

 

 

 

Cash and cash equivalents

 

$

6,406

 

 

$

12,650

 

Restricted cash and cash equivalents

 

67

 

 

33

 

Accounts receivable, net of allowance of $34 and $40, respectively

 

919

 

 

1,154

 

Prepaid expenses and other current assets

 

860

 

 

1,316

 

Assets held for sale

 

406

 

 

 

Total current assets

 

8,658

 

 

15,153

 

Restricted cash and cash equivalents

 

1,736

 

 

1,958

 

Investments

 

10,355

 

 

10,412

 

Equity method investments

 

1,312

 

 

1,393

 

Property and equipment, net

 

1,641

 

 

1,537

 

Operating lease right-of-use assets

 

 

 

1,538

 

Intangible assets, net

 

82

 

 

74

 

Goodwill

 

153

 

 

167

 

Other assets

 

51

 

 

60

 

Total assets

 

$

23,988

 

 

$

32,292

 

Liabilities, mezzanine equity and equity (deficit)

 

 

 

 

Accounts payable

 

$

150

 

 

$

126

 

Short-term insurance reserves

 

941

 

 

1,023

 

Operating lease liabilities, current

 

 

 

197

 

Accrued and other current liabilities

 

3,157

 

 

4,026

 

Liabilities held for sale

 

11

 

 

 

Total current liabilities

 

4,259

 

 

5,372

 

Long-term insurance reserves

 

1,996

 

 

2,271

 

Long-term debt, net of current portion

 

6,869

 

 

5,711

 

Operating lease liabilities, non-current

 

 

 

1,459

 

Other long-term liabilities

 

4,072

 

 

1,428

 

Total liabilities

 

17,196

 

 

16,241

 

Commitments and contingencies

 

 

 

 

Mezzanine equity

 

 

 

 

Redeemable non-controlling interests

 

 

 

309

 

Redeemable convertible preferred stock, $0.00001 par value, 946,246 and zero shares authorized, 903,607 and zero shares issued and outstanding, respectively; aggregate liquidation preference of $14 and $0, respectively

 

14,177

 

 

 

Equity (deficit)

 

 

 

 

Common stock, $0.00001 par value, 2,696,114 and 5,000,000 shares authorized, 457,189 and 1,703,630 shares issued and outstanding, respectively

 

 

 

 

Additional paid-in capital

 

668

 

 

30,513

 

Accumulated other comprehensive loss

 

(188

)

 

(185

)

Accumulated deficit

 

(7,865

)

 

(15,266

)

Total Uber Technologies, Inc. stockholders' equity (deficit)

 

(7,385

)

 

15,062

 

Non-redeemable non-controlling interests

 

 

 

680

 

Total equity (deficit)

 

(7,385

)

 

15,742

 

Total liabilities, mezzanine equity and equity (deficit)

 

$

23,988

 

 

$

32,292

 

UBER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share amounts which are reflected in thousands, and per share amounts)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2018

 

2019

 

2018

 

2019

Revenue

 

$

2,944

 

 

$

3,813

 

 

$

8,296

 

 

$

10,078

 

Costs and expenses

 

 

 

 

 

 

 

 

Cost of revenue, exclusive of depreciation and amortization shown separately below

 

1,510

 

 

1,860

 

 

4,008

 

 

5,281

 

Operations and support

 

387

 

 

498

 

 

1,108

 

 

1,796

 

Sales and marketing

 

785

 

 

1,113

 

 

2,177

 

 

3,375

 

Research and development

 

434

 

 

755

 

 

1,139

 

 

4,228

 

General and administrative

 

460

 

 

591

 

 

1,527

 

 

2,652

 

Depreciation and amortization

 

131

 

 

102

 

 

317

 

 

371

 

Total costs and expenses

 

3,707

 

 

4,919

 

 

10,276

 

 

17,703

 

Loss from operations

 

(763

)

 

(1,106

)

 

(1,980

)

 

(7,625

)

Interest expense

 

(161

)

 

(90

)

 

(453

)

 

(458

)

Other income (expense), net

 

(54

)

 

49

 

 

4,946

 

 

707

 

Income (loss) before income taxes and loss from equity method investment

 

(978

)

 

(1,147

)

 

2,513

 

 

(7,376

)

Provision for income taxes

 

1

 

 

3

 

 

605

 

 

20

 

Loss from equity method investment, net of tax

 

(15

)

 

(9

)

 

(32

)

 

(25

)

Net income (loss) including non-controlling interests

 

(994

)

 

(1,159

)

 

1,876

 

 

(7,421

)

Less: net income (loss) attributable to non-controlling interests, net of tax

 

(8

)

 

3

 

 

(8

)

 

(11

)

Net income (loss) attributable to Uber Technologies, Inc.

 

$

(986

)

 

$

(1,162

)

 

$

1,884

 

 

$

(7,410

)

Net income (loss) per share attributable to Uber Technologies, Inc. common stockholders:

 

 

 

 

 

 

 

 

Basic

 

$

(2.21

)

 

$

(0.68

)

 

$

0.59

 

 

$

(6.79

)

Diluted

 

$

(2.21

)

 

$

(0.68

)

 

$

0.52

 

 

$

(6.79

)

Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:

 

 

 

 

 

 

 

 

Basic

 

445,783

 

 

1,700,213

 

 

441,301

 

 

1,092,241

 

Diluted

 

445,783

 

 

1,700,213

 

 

477,592

 

 

1,092,241

 

UBER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

2018

 

2019

Cash flows from operating activities

 

 

 

 

Net income (loss) including non-controlling interests

 

$

1,876

 

 

$

(7,421

)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

 

 

Depreciation and amortization

 

317

 

 

371

 

Bad debt expense

 

35

 

 

79

 

Stock-based compensation

 

145

 

 

4,353

 

Gain on extinguishment of convertible notes and settlement of derivatives

 

 

 

(444

)

Gain on business divestitures

 

(3,208

)

 

 

Deferred income tax

 

420

 

 

(55

)

Revaluation of derivative liabilities

 

491

 

 

(58

)

Accretion of discount on long-term debt

 

231

 

 

80

 

Payment-in-kind interest

 

53

 

 

10

 

Loss on disposal of property and equipment

 

63

 

 

14

 

Impairment on long-lived assets held for sale

 

122

 

 

 

Loss from equity method investment

 

32

 

 

25

 

Gain on debt and equity securities, net

 

(1,984

)

 

(1

)

Non-cash deferred revenue

 

 

 

(39

)

Gain on forfeiture of unvested warrants and related share repurchases

 

(152

)

 

 

Unrealized foreign currency transactions

 

54

 

 

(16

)

Other

 

7

 

 

18

 

Change in operating assets and liabilities, net of impact of business acquisitions and disposals:

 

 

 

 

Accounts receivable

 

(359

)

 

(342

)

Prepaid expenses and other assets

 

(421

)

 

(467

)

Operating lease right-of-use assets

 

 

 

135

 

Accounts payable

 

(66

)

 

(23

)

Accrued insurance reserve

 

763

 

 

356

 

Accrued expenses and other liabilities

 

721

 

 

997

 

Operating lease liabilities

 

 

 

(94

)

Net cash used in operating activities

 

(860

)

 

(2,522

)

Cash flows from investing activities

 

 

 

 

Proceeds from insurance reimbursement, sale and disposal of property and equipment

 

329

 

 

41

 

Purchase of property and equipment

 

(362

)

 

(406

)

Purchase of equity method investments

 

(412

)

 

 

Investments in debt securities

 

(30

)

 

 

Proceeds from business disposal, net of cash divested

 

 

 

293

 

Acquisition of businesses, net of cash acquired

 

(64

)

 

(7

)

Net cash used in investing activities

 

(539

)

 

(79

)

Cash flows from financing activities

 

 

 

 

Proceeds from issuance of common stock upon initial public offering, net of offering costs

 

 

 

7,973

 

Taxes paid related to net share settlement of equity awards

 

 

 

(1,514

)

Proceeds from issuance of common stock related to private placement

 

 

 

500

 

Proceeds from issuance of subsidiary preferred stock units

 

 

 

1,000

 

Proceeds from exercise of stock options, net of repurchases

 

26

 

 

5

 

Repurchase of outstanding shares

 

(10

)

 

 

Issuance of term loan and senior notes, net of issuance costs

 

1,478

 

 

1,189

 

Principal repayment on term loan

 

(12

)

 

(20

)

Principal repayment on revolving lines of credit

 

(491

)

 

 

Principal payments on capital and finance leases

 

(59

)

 

(120

)

Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs

 

1,250

 

 

 

Dissolution of joint venture and subsequent proceeds

 

38

 

 

 

Other

 

(57

)

 

9

 

Net cash provided by financing activities

 

2,163

 

 

9,022

 

Effect of exchange rate changes on cash and cash equivalents, and restricted cash and cash equivalents

 

(133

)

 

(23

)

Net increase in cash and cash equivalents, and restricted cash and cash equivalents

 

631

 

 

6,398

 

Cash and cash equivalents, and restricted cash and cash equivalents

 

 

 

 

Beginning of period

 

5,828

 

 

8,209

 

Reclassification from assets held for sale during the period

 

54

 

 

34

 

End of period, excluding cash classified within assets held for sale

 

$

6,513

 

 

$

14,641

 

 

 

 

 

 

Reconciliation of cash and cash equivalents, and restricted cash and cash equivalents to the condensed consolidated balance sheets

 

 

 

 

Cash and cash equivalents

 

$

4,756

 

 

$

12,650

 

Restricted cash and cash equivalents-current

 

214

 

 

33

 

Restricted cash and cash equivalents-non-current

 

1,543

 

 

1,958

 

Total cash and cash equivalents, and restricted cash and cash equivalents

 

$

6,513

 

 

$

14,641

 

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

 

 

Cash paid for:

 

 

 

 

Interest, net of amount capitalized

 

$

83

 

 

$

213

 

Income taxes, net of refunds

 

213

 

 

105

 

Non-cash investing and financing activities:

 

 

 

 

Conversion of redeemable convertible preferred stock to common stock upon initial public offering

 

 

 

14,224

 

Conversion of convertible notes to common stock upon initial public offering

 

 

 

4,229

 

Changes in purchases of property, equipment and software recorded in accounts payable and accrued liabilities

 

(9

)

 

13

 

Financed construction projects

 

135

 

 

 

Capital and finance lease obligations

 

132

 

 

196

 

Settlement of litigation through issuance of redeemable convertible preferred stock

 

250

 

 

 

Common stock issued in connection with acquisitions

 

93

 

 

 

Ownership interest in MLU B.V. received in connection with the disposition of Uber Russia/CIS operations

 

1,410

 

 

 

Grab debt security received in exchange for the sale of Southeast Asia operations

 

2,275

 

 

 

Other Income (Expense), Net

The following table presents other income (expense), net (in millions):

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2018

 

2019

 

2018

 

2019

 

 

(Unaudited)

Interest income

 

$

27

 

 

$

76

 

 

$

69

 

 

$

184

 

Foreign currency exchange gains (losses), net

 

(18

)

 

8

 

 

(42

)

 

 

Gain on business divestitures (1)

 

7

 

 

 

 

3,208

 

 

 

Gain (loss) on debt and equity securities, net (2)

 

 

 

(13

)

 

1,984

 

 

1

 

Change in fair value of embedded derivatives

 

(89

)

 

 

 

(491

)

 

58

 

Gain on extinguishment of convertible notes and settlement of derivatives

 

 

 

 

 

 

 

444

 

Other

 

19

 

 

(22

)

 

218

 

 

20

 

Other income (expense), net

 

$

(54

)

 

$

49

 

 

$

4,946

 

 

$

707

 

(1)

During the nine months ended September 30, 2018, gain on business divestitures primarily includes a $2.2 billion gain on the sale of our Southeast Asia operations to Grab Holding Inc. (“Grab”) and a $954 million gain on the disposal of our Uber Russia/CIS operations recognized in the first quarter of 2018.

(2)

During the nine months ended September 30, 2018, gain on debt and equity securities, net represents a $2.0 billion unrealized gain on our non-marketable equity securities related to Didi recognized in the first quarter of 2018.

Stock-Based Compensation Expense

The following table summarizes total stock-based compensation expense by function (in millions):

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2018

 

2019

 

2018

 

2019

 

 

(Unaudited)

Operations and support

 

$

4

 

 

$

26

 

 

$

11

 

 

$

431

 

Sales and marketing

 

2

 

 

16

 

 

6

 

 

229

 

Research and development

 

49

 

 

262

 

 

60

 

 

2,822

 

General and administrative

 

9

 

 

97

 

 

70

 

 

871

 

Total

$

64

$

401

$

147

$

4,353

Key Terms for Our Key Metrics and Non-GAAP Financial Measures

2018 Divested Operations. We define 2018 Divested Operations as our operations in (i) Southeast Asia prior to the sale of those operations to Grab and (ii) Russia/CIS prior to the formation of our Yandex Taxi joint venture.

Adjusted EBITDA. We define Adjusted EBITDA as net income (loss), excluding (i) income (loss) from discontinued operations, net of income taxes, (ii) net income (loss) attributable to non-controlling interests, net of tax, (iii) provision for (benefit from) income taxes, (iv) income (loss) from equity method investment, net of tax, (v) interest expense, (vi) other income (expense), net, (vii) depreciation and amortization, (viii) stock-based compensation expense, (ix) certain legal, tax, and regulatory reserve changes and settlements, (x) asset impairment/loss on sale of assets, (xi) acquisition and financing related expenses, (xii) restructuring charges and (xiii) other items not indicative of our ongoing operating performance.

Adjusted Net Revenue (“ANR”). We define Adjusted Net Revenue as revenue less (i) excess Driver incentives and (ii) Driver referrals. We believe that Adjusted Net Revenue is informative of our top line performance because it measures the total net financial activity reflected in the amount earned by us after taking into account all Driver and restaurant earnings, Driver incentives, and Driver referrals. Adjusted Net Revenue is lower than revenue in all reported periods.

Driver or restaurant earnings. Driver or restaurant earnings refer to the net portion of the fare or the net portion of the order value that a Driver or a restaurant retains, respectively.

Driver incentives. Driver incentives refer to payments that we make to Drivers, which are separate from and in addition to the Driver’s portion of the fare paid by the consumer. For example, Driver incentives could include payments we make to Drivers should they choose to take advantage of an incentive offer and complete a consecutive number of trips or a cumulative number of trips on the platform over a defined period of time. Driver incentives are recorded as a reduction of revenue to the extent they are not excess Driver incentives (as defined below).

Driver referrals. Driver referrals refer to payments that we make to existing Drivers to refer new Drivers onto our platform. Driver referrals are recorded in sales and marketing expenses, as they represent the receipt of a distinct service of customer acquisition for which there is evidence of fair value.

Excess Driver incentives. Excess Driver incentives refer to cumulative payments, including incentives but excluding Driver referrals, to a Driver that exceed the cumulative revenue that we recognize from a Driver with no future guarantee of additional revenue. Cumulative payments to a Driver could exceed cumulative revenue from a Driver as a result of Driver incentives or when the amount paid to a Driver for a Trip exceeds the fare charged to the consumer. Excess Driver incentives are recorded in cost of revenue, exclusive of depreciation and amortization.

Gross Bookings. We define Gross Bookings as the total dollar value, including any applicable taxes, tolls, and fees, of Ridesharing and New Mobility rides, Eats meal deliveries, and amounts paid by shippers for Freight shipments, in each case without any adjustment for consumer discounts and refunds, Driver and restaurant earnings, and Driver incentives. Gross Bookings do not include tips earned by Drivers. Gross Bookings exclude the impact of our 2018 Divested Operations.

Monthly Active Platform Consumers (“MAPCs”). We define MAPCs as the number of unique consumers who completed a Rides or New Mobility ride or received an Eats meal on our platform at least once in a given month, averaged over each month in the quarter. While a unique consumer can use multiple product offerings on our platform in a given month, that unique consumer is counted as only one MAPC. MAPCs exclude the impact of our 2018 Divested Operations.

Other Bets. The Other Bets segment consists of multiple investment stage offerings. The largest investment within the segment is our New Mobility offering that refers to products that provide consumers with access to rides through a variety of modes, including dockless e-bikes and e-scooters. It also includes Transit, UberWorks and our Incubator group.

Segment Adjusted EBITDA. We define each segment’s Adjusted EBITDA as segment revenue less the following direct costs and expenses of that segment: (i) cost of revenue, exclusive of depreciation and amortization; (ii) operations and support; (iii) sales and marketing; (iv) research and development; and (v) general and administrative. Segment Adjusted EBITDA also reflects any applicable exclusions from Adjusted EBITDA and excludes the impact of our 2018 Divested Operations.

Segment Adjusted EBITDA margin. We define each segment’s Adjusted EBITDA margin as the segment Adjusted EBITDA as a percentage of segment Adjusted Net Revenue. Segment Adjusted EBITDA margin demonstrates the margin that we generate after direct expenses. We believe that each segment’s Adjusted EBITDA margin is a useful indicator of the economics of our segments, as it does not include indirect Corporate G&A and Platform R&D.

Take Rate. We define Take Rate as Adjusted Net Revenue as a percentage of Gross Bookings. For purposes of Take Rate, Gross Bookings include the impact of our 2018 Divested Operations.

Trips. We define Trips as the number of completed consumer Rides or New Mobility rides and Eats meal deliveries in a given period. For example, an UberPOOL ride with three paying consumers represents three unique Trips, whereas an UberX ride with three passengers represents one Trip. Trips exclude the impact of our 2018 Divested Operations.

Definitions of Non-GAAP Measures

We collect and analyze operating and financial data to evaluate the health of our business and assess our performance. In addition to revenue, net income (loss), loss from operations, and other results under GAAP, we use Adjusted Net Revenue and Adjusted EBITDA, as well as revenue and ANR growth rates in constant currency, which are described below, to evaluate our business. We have included these non-GAAP financial measures because they are key measures used by our management to evaluate our operating performance. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. Our calculation of these non-GAAP financial measures may differ from similarly-titled non-GAAP measures, if any, reported by our peer companies. These non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with GAAP.

Adjusted Net Revenue

We define Adjusted Net Revenue as revenue less (i) excess Driver incentives and (ii) Driver referrals. We define Rides Adjusted Net Revenue as Rides revenue less (i) excess Driver incentives and (ii) Driver referrals. We define Eats Adjusted Net Revenue as Eats revenue less (i) excess Driver incentives and (ii) Driver referrals. Freight Adjusted Net Revenue, Other Bets Adjusted Net Revenue and ATG and Other Technology Programs Adjusted Net Revenue do not include excess Driver incentives or Driver referrals and are equal to GAAP net revenue in all periods presented. We believe that these measures are informative of our top line performance because they measure the total net financial activity reflected in the amount earned by us after taking into account all Driver and restaurant earnings, Driver incentives, and Driver referrals. Adjusted Net Revenue is lower than revenue in all reported periods.

Excess Driver incentives refer to cumulative payments, including incentives but excluding Driver referrals, to a Driver that exceed the cumulative revenue that we recognize from a Driver with no future guarantee of additional revenue. Cumulative payments to a Driver could exceed cumulative revenue from a Driver as a result of Driver incentives or when the amount paid to a Driver for a Trip exceeds the fare charged to the consumer. Further, cumulative payments to Drivers for Eats deliveries historically have exceeded the cumulative delivery fees paid by consumers. Excess Driver incentives are recorded in cost of revenue, exclusive of depreciation and amortization. Driver referrals are recorded in sales and marketing expenses. Management views Driver incentives and Driver referrals as Driver payments in the aggregate, whether they are classified as Driver incentives, excess Driver incentives, or Driver referrals.

These amounts largely depend on our business decisions based on market conditions. We include the impact of these amounts in Adjusted Net Revenue as it is useful to evaluate how increasing or decreasing incentives would impact our top line performance, and the overall net financial activity between us and our customers, which ultimately impacts our Take Rate.

Adjusted Net Revenue has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for revenue prepared in accordance with GAAP.

Adjusted EBITDA

We define Adjusted EBITDA as net income (loss), excluding (i) income (loss) from discontinued operations, net of income taxes, (ii) net income (loss) attributable to non-controlling interests, net of tax (iii) provision for (benefit from) income taxes, (iv) income (loss) from equity method investment, net of tax, (v) interest expense, (vi) other income (expense), net, (vii) depreciation and amortization, (viii) stock-based compensation expense, (ix) certain legal, tax, and regulatory reserve changes and settlements, (x) asset impairment/loss on sale of assets, (xi) acquisition and financing related expenses, (xii) restructuring charges and (xiii) other items not indicative of our ongoing operating performance.

We have included Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. In addition, it provides a useful measure for period-to-period comparisons of our business, as it removes the effect of certain non-cash expenses and certain variable charges.

Adjusted EBITDA has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with GAAP. These limitations include the following:

Constant Currency

We compare the percent change in our current period results from the corresponding prior period using constant currency disclosure. We present constant currency growth rate information to provide a framework for assessing how our underlying revenue and ANR performed excluding the effect of foreign currency rate fluctuations. We calculate constant currency by translating our current period financial results using the corresponding prior period’s monthly exchange rates for our transacted currencies other than the U.S. dollar.

Reconciliations of Non-GAAP Measures

Adjusted Net Revenue

The following tables present reconciliations of Adjusted Net Revenue, Rides Adjusted Net Revenue and Eats Adjusted Net Revenue to the most directly comparable GAAP financial measures for each of the periods indicated. Freight Adjusted Net Revenue, Other Bets Adjusted Net Revenue and ATG and Other Technology Programs Adjusted Net Revenue do not include excess Driver incentives or Driver referrals and are equal to GAAP net revenue in all periods presented.

 

 

Three Months Ended September 30,

(in millions)

 

2018

 

2019

Adjusted Net Revenue reconciliation:

 

 

 

 

Revenue

 

$

2,944

 

 

$

3,813

 

Deduct:

 

 

 

 

Excess Driver incentives

 

(253

)

 

(259

)

Driver referrals

 

(35

)

 

(21

)

Adjusted Net Revenue

 

$

2,656

 

 

$

3,533

 

 

 

Three Months Ended September 30,

(in millions)

 

2018

 

2019

Rides Adjusted Net Revenue reconciliation:

 

 

 

 

Rides revenue

 

$

2,425

 

 

$

2,895

 

Deduct:

 

 

 

 

Excess Driver incentives

 

(53

)

 

(12

)

Driver referrals

 

(32

)

 

(15

)

Rides Adjusted Net Revenue

 

$

2,340

 

 

$

2,868

 

 

 

Three Months Ended September 30,

(in millions)

 

2018

 

2019

Eats Adjusted Net Revenue reconciliation:

 

 

 

 

Eats revenue

 

$

394

 

 

$

645

 

Deduct:

 

 

 

 

Excess Driver incentives

 

(200

)

 

(247

)

Driver referrals

 

(3

)

 

(6

)

Eats Adjusted Net Revenue

 

$

191

 

 

$

392

 

Adjusted EBITDA

 

 

Three Months Ended September 30,

(in millions)

 

2018

 

2019

Adjusted EBITDA reconciliation:

 

 

 

 

Net income (loss) attributable to Uber Technologies, Inc.

 

$

(986

)

 

$

(1,162

)

Add (deduct):

 

 

 

 

Net income (loss) attributable to non-controlling interests, net of tax

 

(8

)

 

3

 

Provision for (benefit from) income taxes

 

1

 

 

3

 

(Income) loss from equity method investment, net of tax

 

15

 

 

9

 

Interest expense

 

161

 

 

90

 

Other (income) expense, net

 

54

 

 

(49

)

Depreciation and amortization

 

131

 

 

102

 

Stock-based compensation expense

 

64

 

 

401

 

Legal, tax, and regulatory reserve changes and settlements

 

56

 

 

(27

)

Asset impairment/loss on sale of assets

 

54

 

 

 

Restructuring charges

 

 

 

45

 

Adjusted EBITDA

 

$

(458

)

 

$

(585

)

The comparability of the results for the periods presented above was impacted by our 2018 Divested Operations. During the three months ended September 30, 2018, 2018 Divested Operations decreased net income (loss) attributable to Uber Technologies, Inc. by $9 million.

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KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: SOFTWARE RESTAURANT/BAR MOBILE/WIRELESS FLEET MANAGEMENT TRANSPORTATION TECHNOLOGY AUTOMOTIVE FOOD/BEVERAGE TRAVEL RETAIL TRUCKING TRANSPORT LOGISTICS/SUPPLY CHAIN MANAGEMENT

SOURCE: Uber Technologies, Inc.

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PUB: 11/04/2019 04:05 PM/DISC: 11/04/2019 04:05 PM

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