Uber Technologies, Inc. (NYSE: UBER) today announced financial results for the fourth quarter and full year ended December 31, 2020.
Financial Highlights for Fourth Quarter 2020
“While 2020 certainly tested our resilience, it also dramatically accelerated our capabilities in local commerce, with our Delivery business more than doubling over the year to a nearly $44 billion annual bookings run-rate in December,” said Dara Khosrowshahi, CEO. “With two global businesses stitched together by world-class tech and increasingly valuable membership programs, we are more focused than ever on making people’s lives a little bit easier—helping them go wherever they want and get whatever they need.”
“We made some big moves this year, acquiring businesses like Cornershop and Postmates while divesting others like ATG and Jump, and structurally lowering our cost base,” said Nelson Chai, CFO. “These decisions have resulted in a much more focused and ultimately stronger company. In Q4 we continued to deliver improving Adjusted EBITDA performance, up $171 million quarter-over-quarter, and remain well on track to achieving our profitability goals in 2021.”
Fourth Quarter 2020 Financial and Operational Highlights
|
| Three Months Ended December 31, |
|
|
|
| ||||||||
(In millions, except percentages) |
| 2019 |
| 2020 |
| % Change |
| % Change | ||||||
|
|
|
|
|
|
|
|
| ||||||
Monthly Active Platform Consumers (“MAPCs”) |
| 111 |
| 93 |
| (16 | )% |
|
| |||||
Trips |
| 1,907 |
| 1,443 |
| (24 | )% |
|
| |||||
Gross Bookings |
| $ | 18,131 |
|
| $ | 17,152 |
|
| (5 | )% |
| (4 | )% |
Revenue |
| $ | 3,747 |
|
| $ | 3,165 |
|
| (16 | )% |
| (15 | )% |
Net loss attributable to Uber Technologies, Inc. (2) |
| $ | (1,096 | ) |
| $ | (968 | ) |
| 12 | % |
|
| |
Mobility Adjusted EBITDA |
| $ | 742 |
|
| $ | 293 |
|
| (61 | )% |
|
| |
Delivery Adjusted EBITDA |
| $ | (461 | ) |
| $ | (145 | ) |
| 69 | % |
|
| |
Adjusted EBITDA (1) |
| $ | (615 | ) |
| $ | (454 | ) |
| 26 | % |
|
| |
(1) See “Definitions of Non-GAAP Measures” and “Reconciliations of Non-GAAP Measure” sections herein for an explanation and reconciliations of non-GAAP measures used throughout this release. |
Full Year 2020 Financial and Operational Highlights
|
| Year Ended December 31, |
|
|
|
| ||||||||
(In millions, except percentages) |
| 2019 |
| 2020 |
| % Change |
| % Change | ||||||
|
|
|
|
|
|
|
|
| ||||||
Trips |
| 6,904 |
| 5,025 |
| (27) | % |
|
| |||||
Gross Bookings |
| $ | 65,001 |
|
| $ | 57,897 |
|
| (11) | % |
| (9) | % |
Revenue |
| $ | 13,000 |
|
| $ | 11,139 |
|
| (14) | % |
| (13) | % |
Net loss attributable to Uber Technologies, Inc. (2) |
| $ | (8,506 | ) |
| $ | (6,768 | ) |
| 20 | % |
|
| |
Mobility Adjusted EBITDA |
| $ | 2,071 |
|
| $ | 1,169 |
|
| (44) | % |
|
| |
Delivery Adjusted EBITDA |
| $ | (1,372 | ) |
| $ | (873 | ) |
| 36 | % |
|
| |
Adjusted EBITDA (1) |
| $ | (2,725 | ) |
| $ | (2,528 | ) |
| 7 | % |
|
| |
(1) See “Definitions of Non-GAAP Measures” and “Reconciliations of Non-GAAP Measure” sections herein for an explanation and reconciliations of non-GAAP measures used throughout this release. |
Results by Offering and Segment
Gross Bookings
|
| Three Months Ended December 31, |
|
|
|
| ||||||||
(In millions, except percentages) |
| 2019 |
| 2020 |
| % Change |
| % Change | ||||||
|
|
|
|
|
|
|
|
| ||||||
Gross Bookings: |
|
|
|
|
|
|
|
| ||||||
Mobility |
| $ | 13,512 |
|
| $ | 6,789 |
|
| (50) | % |
| (47) | % |
Delivery |
| 4,374 |
|
| 10,050 |
|
| 130 | % |
| 128 | % | ||
Freight |
| 219 |
|
| 313 |
|
| 43 | % |
| 43 | % | ||
All Other |
| 26 |
|
| — |
|
| ** |
| ** | ||||
Total |
| $ | 18,131 |
|
| $ | 17,152 |
|
| (5) | % |
| (4) | % |
** Percentage not meaningful. |
Revenue
|
| Three Months Ended December 31, |
|
|
|
| ||||||||
(In millions, except percentages) |
| 2019 (1) |
| 2020 |
| % Change |
| % Change | ||||||
|
|
|
|
|
|
|
|
| ||||||
Revenue: |
|
|
|
|
|
|
|
| ||||||
Mobility |
| $ | 3,050 |
|
| $ | 1,471 |
|
| (52) | % |
| (51) | % |
Delivery |
| 418 |
|
| 1,356 |
|
| 224 | % |
| 220 | % | ||
Freight |
| 219 |
|
| 313 |
|
| 43 | % |
| 43 | % | ||
ATG and Other Technology Programs (2) |
| 25 |
|
| 25 |
|
| — |
|
| ** | |||
All Other |
| 35 |
|
| — |
|
| (100) | % |
| ** | |||
Total |
| $ | 3,747 |
|
| $ | 3,165 |
|
| (16) | % |
| (15) | % |
(1) Our previously reported revenue in 2019 has been retrospectively adjusted to reflect the implementation of a new accounting policy. During the fourth quarter of 2020, we changed our accounting policy related to the presentation of cumulative payments to Drivers in excess of cumulative revenue from Drivers. Our policy for the presentation of these excess cumulative payments has changed from presenting them within cost of revenue, exclusive of depreciation and amortization, to presenting them as a reduction of revenue in our consolidated statements of operations. |
Adjusted EBITDA and Segment Adjusted EBITDA
|
| Three Months Ended December 31, |
|
| |||||||
(In millions, except percentages) |
| 2019 |
| 2020 |
| % Change | |||||
|
|
|
|
|
|
| |||||
Segment Adjusted EBITDA: |
|
|
|
|
|
| |||||
Mobility |
| $ | 742 |
|
| $ | 293 |
|
| (61) | % |
Delivery |
| (461 | ) |
| (145 | ) |
| 69 | % | ||
Freight |
| (55 | ) |
| (41 | ) |
| 25 | % | ||
ATG and Other Technology Programs |
| (130 | ) |
| (72 | ) |
| 45 | % | ||
All Other |
| (67 | ) |
| — |
|
| 100 | % | ||
Corporate G&A and Platform R&D (1), (2) |
| (644 | ) |
| (489 | ) |
| 24 | % | ||
Adjusted EBITDA (3) |
| $ | (615 | ) |
| $ | (454 | ) |
| 26 | % |
(1) Excludes stock-based compensation expense. |
Revenue by Geographical Region
|
| Three Months Ended December 31, |
|
| |||||||
(In millions, except percentages) |
| 2019 |
| 2020 |
| % Change | |||||
|
|
|
|
|
|
| |||||
United States and Canada |
| $ | 2,458 |
|
| $ | 1,814 |
|
| (26) | % |
Latin America ("LatAm") |
| 531 |
|
| 302 |
|
| (43) | % | ||
Europe, Middle East and Africa ("EMEA") |
| 531 |
|
| 664 |
|
| 25 | % | ||
Asia Pacific ("APAC") |
| 227 |
|
| 385 |
|
| 70 | % | ||
Total |
| $ | 3,747 |
|
| $ | 3,165 |
|
| (16) | % |
Operating Highlights for the Fourth Quarter 2020
Platform
Mobility
Delivery
Other Segments and Corporate
Recent Developments
Webcast and conference call information
A live audio webcast of our fourth quarter and year ended December 31, 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 February 10, 2021 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: the outcome of a legal appeal in the UK regarding the classification of Drivers and a related tax case before the UK tax authority, 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 most recent quarterly report on Form 10-Q for the quarter ended September 30, 2020 and subsequent annual reports, 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. 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 EBITDA; and Adjusted EBITDA margin as a percentage of revenue, as well as, 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 Measure” included at the end of this release.
UBER TECHNOLOGIES, INC. | ||||||||
|
| As of December 31, | ||||||
|
| 2019 |
| 2020 | ||||
Assets |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 10,873 |
|
| $ | 5,647 |
|
Short-term investments |
| 440 |
|
| 1,180 |
| ||
Restricted cash and cash equivalents |
| 99 |
|
| 250 |
| ||
Accounts receivable, net |
| 1,214 |
|
| 1,073 |
| ||
Prepaid expenses and other current assets |
| 1,299 |
|
| 1,215 |
| ||
Assets held for sale |
| — |
|
| 517 |
| ||
Total current assets |
| 13,925 |
|
| 9,882 |
| ||
Restricted cash and cash equivalents |
| 1,095 |
|
| 1,494 |
| ||
Collateral held by insurer |
| 1,199 |
|
| 860 |
| ||
Investments |
| 10,527 |
|
| 9,052 |
| ||
Equity method investments |
| 1,364 |
|
| 1,079 |
| ||
Property and equipment, net |
| 1,731 |
|
| 1,814 |
| ||
Operating lease right-of-use assets |
| 1,594 |
|
| 1,274 |
| ||
Intangible assets, net |
| 71 |
|
| 1,564 |
| ||
Goodwill |
| 167 |
|
| 6,109 |
| ||
Other assets |
| 88 |
|
| 124 |
| ||
Total assets |
| $ | 31,761 |
|
| $ | 33,252 |
|
Liabilities, mezzanine equity and equity |
|
|
|
| ||||
Accounts payable |
| $ | 272 |
|
| $ | 235 |
|
Short-term insurance reserves |
| 1,121 |
|
| 1,243 |
| ||
Operating lease liabilities, current |
| 196 |
|
| 175 |
| ||
Accrued and other current liabilities |
| 4,050 |
|
| 5,112 |
| ||
Liabilities held for sale |
| — |
|
| 100 |
| ||
Total current liabilities |
| 5,639 |
|
| 6,865 |
| ||
Long-term insurance reserves |
| 2,297 |
|
| 2,223 |
| ||
Long-term debt, net of current portion |
| 5,707 |
|
| 7,560 |
| ||
Operating lease liabilities, non-current |
| 1,523 |
|
| 1,544 |
| ||
Other long-term liabilities |
| 1,412 |
|
| 1,306 |
| ||
Total liabilities |
| 16,578 |
|
| 19,498 |
| ||
Mezzanine equity |
|
|
|
| ||||
Redeemable non-controlling interests |
| 311 |
|
| 787 |
| ||
Equity |
|
|
|
| ||||
Common stock |
| — |
|
| — |
| ||
Additional paid-in capital |
| 30,739 |
|
| 35,931 |
| ||
Accumulated other comprehensive loss |
| (187 | ) |
| (535 | ) | ||
Accumulated deficit |
| (16,362 | ) |
| (23,130 | ) | ||
Total Uber Technologies, Inc. stockholders' equity |
| 14,190 |
|
| 12,266 |
| ||
Non-redeemable non-controlling interests |
| 682 |
|
| 701 |
| ||
Total equity |
| 14,872 |
|
| 12,967 |
| ||
Total liabilities, mezzanine equity and equity |
| $ | 31,761 |
|
| $ | 33,252 |
|
UBER TECHNOLOGIES, INC. | ||||||||||||||||
|
| Three Months Ended December 31, |
| Year Ended December 31, | ||||||||||||
|
| 2019 |
| 2020 |
| 2019 |
| 2020 | ||||||||
Revenue (1) |
| $ | 3,747 |
|
| $ | 3,165 |
|
| $ | 13,000 |
|
| $ | 11,139 |
|
Costs and expenses |
|
|
|
|
|
|
|
| ||||||||
Cost of revenue, exclusive of depreciation and amortization shown separately below (1) |
| 1,605 |
|
| 1,441 |
|
| 6,061 |
|
| 5,154 |
| ||||
Operations and support |
| 506 |
|
| 369 |
|
| 2,302 |
|
| 1,819 |
| ||||
Sales and marketing |
| 1,251 |
|
| 1,038 |
|
| 4,626 |
|
| 3,583 |
| ||||
Research and development |
| 608 |
|
| 483 |
|
| 4,836 |
|
| 2,205 |
| ||||
General and administrative |
| 647 |
|
| 531 |
|
| 3,299 |
|
| 2,666 |
| ||||
Depreciation and amortization |
| 101 |
|
| 180 |
|
| 472 |
|
| 575 |
| ||||
Total costs and expenses |
| 4,718 |
|
| 4,042 |
|
| 21,596 |
|
| 16,002 |
| ||||
Loss from operations |
| (971 | ) |
| (877 | ) |
| (8,596 | ) |
| (4,863 | ) | ||||
Interest expense |
| (101 | ) |
| (118 | ) |
| (559 | ) |
| (458 | ) | ||||
Other income (expense), net |
| 15 |
|
| 63 |
|
| 722 |
|
| (1,625 | ) | ||||
Loss before income taxes and loss from equity method investments |
| (1,057 | ) |
| (932 | ) |
| (8,433 | ) |
| (6,946 | ) | ||||
Provision for (benefit from) income taxes |
| 25 |
|
| 23 |
|
| 45 |
|
| (192 | ) | ||||
Loss from equity method investments |
| (9 | ) |
| (7 | ) |
| (34 | ) |
| (34 | ) | ||||
Net loss including non-controlling interests |
| (1,091 | ) |
| (962 | ) |
| (8,512 | ) |
| (6,788 | ) | ||||
Less: net income (loss) attributable to non-controlling interests, net of tax |
| 5 |
|
| 6 |
|
| (6 | ) |
| (20 | ) | ||||
Net loss attributable to Uber Technologies, Inc. |
| $ | (1,096 | ) |
| $ | (968 | ) |
| $ | (8,506 | ) |
| $ | (6,768 | ) |
Net loss per share attributable to Uber Technologies, Inc. common stockholders: |
|
|
|
|
|
|
|
| ||||||||
Basic |
| $ | (0.64 | ) |
| $ | (0.54 | ) |
| $ | (6.81 | ) |
| $ | (3.86 | ) |
Diluted |
| $ | (0.64 | ) |
| $ | (0.54 | ) |
| $ | (6.81 | ) |
| $ | (3.86 | ) |
Weighted-average shares used to compute net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
| ||||||||
Basic |
| 1,710,260 |
|
| 1,793,084 |
|
| 1,248,353 |
|
| 1,752,960 |
| ||||
Diluted |
| 1,710,260 |
|
| 1,793,084 |
|
| 1,248,353 |
|
| 1,752,960 |
| ||||
(1) During the fourth quarter of 2020, we changed our accounting policy related to the presentation of cumulative payments to Drivers in excess of cumulative revenue from Drivers. Our policy for the presentation of these excess cumulative payments has changed from presenting them within cost of revenue, exclusive of depreciation and amortization, to presenting them as a reduction of revenue in our consolidated statements of operations. Amounts presented for 2019 have been retrospectively adjusted to reflect the effects of the change to revenue and cost of revenue, exclusive of depreciation and amortization. There was no net impact to loss from operations, net loss attributable to Uber Technologies, Inc., or net loss per share for any periods presented. The consolidated balance sheets and the consolidated statements of cash flows are not affected by this change in accounting policy. |
UBER TECHNOLOGIES, INC. | ||||||||
|
| Year Ended December 31, | ||||||
|
| 2019 |
| 2020 | ||||
Cash flows from operating activities |
|
|
|
| ||||
Net loss including non-controlling interests |
| $ | (8,512 | ) |
| $ | (6,788 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
| ||||
Depreciation and amortization |
| 472 |
|
| 575 |
| ||
Bad debt expense |
| 92 |
|
| 76 |
| ||
Stock-based compensation |
| 4,596 |
|
| 827 |
| ||
Gain on extinguishment of convertible notes and settlement of derivatives |
| (444 | ) |
| — |
| ||
Gain on business divestitures, net |
| — |
|
| (204 | ) | ||
Deferred income taxes |
| (88 | ) |
| (266 | ) | ||
Revaluation of derivative liabilities |
| (58 | ) |
| — |
| ||
Accretion of discount on long-term debt |
| 82 |
|
| 45 |
| ||
Payment-in-kind interest |
| 10 |
|
| — |
| ||
Impairment of debt and equity securities |
| — |
|
| 1,690 |
| ||
Impairments of goodwill, long-lived assets and other assets |
| — |
|
| 404 |
| ||
Loss from equity method investments |
| 34 |
|
| 34 |
| ||
Unrealized (gain) loss on debt and equity securities, net |
| (2 | ) |
| 125 |
| ||
Unrealized foreign currency transactions |
| 16 |
|
| 48 |
| ||
Other |
| (19 | ) |
| (43 | ) | ||
Change in assets and liabilities, net of impact of business acquisitions and disposals: |
|
|
|
| ||||
Accounts receivable |
| (407 | ) |
| 142 |
| ||
Prepaid expenses and other assets |
| (478 | ) |
| 94 |
| ||
Collateral held by insurer |
| (1,199 | ) |
| 339 |
| ||
Operating lease right-of-use assets |
| 201 |
|
| 341 |
| ||
Accounts payable |
| 95 |
|
| (133 | ) | ||
Accrued insurance reserves |
| 481 |
|
| (3 | ) | ||
Accrued expenses and other liabilities |
| 960 |
|
| 83 |
| ||
Operating lease liabilities |
| (153 | ) |
| (131 | ) | ||
Net cash used in operating activities |
| (4,321 | ) |
| (2,745 | ) | ||
Cash flows from investing activities |
|
|
|
| ||||
Proceeds from sale and disposal of property and equipment |
| 51 |
|
| 3 |
| ||
Purchases of property and equipment |
| (588 | ) |
| (616 | ) | ||
Purchases of non-marketable equity securities |
| (100 | ) |
| (10 | ) | ||
Purchases of marketable securities |
| (441 | ) |
| (2,101 | ) | ||
Proceeds from maturities and sales of marketable securities |
| 2 |
|
| 1,360 |
| ||
Proceeds from business disposal, net of cash divested |
| 293 |
|
| — |
| ||
Acquisition of businesses, net of cash acquired |
| (7 | ) |
| (1,471 | ) | ||
Return of capital from equity method investee |
| — |
|
| 91 |
| ||
Purchase of note receivable |
| — |
|
| (185 | ) | ||
Other investing activities |
| — |
|
| 60 |
| ||
Net cash used in investing activities |
| (790 | ) |
| (2,869 | ) | ||
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 |
| (1,573 | ) |
| (17 | ) | ||
Proceeds from issuance of common stock related to private placement |
| 500 |
|
| — |
| ||
Proceeds from issuance of subsidiary preferred stock units |
| 1,000 |
|
| 247 |
| ||
Proceeds from the issuance of common stock under the Employee Stock Purchase Plan |
| 49 |
|
| 125 |
| ||
Issuance of term loan and notes, net of issuance costs |
| 1,189 |
|
| 2,628 |
| ||
Principal repayment on term loan and notes |
| (27 | ) |
| (527 | ) | ||
Principal repayment on Careem Notes |
| — |
|
| (891 | ) | ||
Principal payments on capital and finance leases |
| (138 | ) |
| (224 | ) | ||
Repurchase of stock subject to put options related to Yandex |
| (74 | ) |
| — |
| ||
Other financing activities |
| 40 |
|
| 38 |
| ||
Net cash provided by financing activities |
| 8,939 |
|
| 1,379 |
| ||
Effect of exchange rate changes on cash and cash equivalents, and restricted cash and cash equivalents |
| (4 | ) |
| (92 | ) | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash and cash equivalents |
| 3,824 |
|
| (4,327 | ) | ||
Cash and cash equivalents, and restricted cash and cash equivalents |
|
|
|
| ||||
Beginning of period |
| 8,209 |
|
| 12,067 |
| ||
Reclassification from (to) assets held for sale during the period |
| 34 |
|
| (349 | ) | ||
End of period, excluding cash classified within assets held for sale |
| $ | 12,067 |
|
| $ | 7,391 |
|
Other Income (Expense), Net
The following table presents other income (expense), net (in millions):
|
| Three Months Ended December 31, |
| Year Ended December 31, | ||||||||||||
|
| 2019 |
| 2020 |
| 2019 |
| 2020 | ||||||||
|
| (Unaudited) | ||||||||||||||
Interest income |
| $ | 50 |
|
| $ | 4 |
|
| $ | 234 |
|
| $ | 55 |
|
Foreign currency exchange gains (losses), net |
| (40 | ) |
| (24 | ) |
| (40 | ) |
| (128 | ) | ||||
Gains on business divestitures, net (1) |
| — |
|
| 77 |
|
| — |
|
| 204 |
| ||||
Unrealized gain (loss) on debt and equity securities, net (2) |
| 1 |
|
| (2 | ) |
| 2 |
|
| (125 | ) | ||||
Impairment of debt and equity securities (3) |
| — |
|
| — |
|
| — |
|
| (1,690 | ) | ||||
Change in fair value of embedded derivatives |
| — |
|
| — |
|
| 58 |
|
| — |
| ||||
Gain on extinguishment of convertible notes and settlement of derivatives (4) |
| — |
|
| — |
|
| 444 |
|
| — |
| ||||
Other, net |
| 4 |
|
| 8 |
|
| 24 |
|
| 59 |
| ||||
Other income (expense), net |
| $ | 15 |
|
| $ | 63 |
|
| $ | 722 |
|
| $ | (1,625 | ) |
(1) During the year ended December 31, 2020, gains on business divestitures, net represented a $154 million gain on the sale of our Uber Eats India operations to Zomato Media Private Limited (“Zomato”) recognized in the first quarter of 2020 and a $77 million gain on the sale of our European Freight Business to sennder GmbH recognized in the fourth quarter of 2020, partially offset by a $27 million loss on the sale of our JUMP operations to Lime recognized in the second quarter of 2020. (2) During the years ended 2019 and 2020, we recorded changes to the fair value of investments in securities accounted for under the fair value option. (3) During the year ended December 31, 2020, we recorded an impairment charge of $1.7 billion, primarily related to our investment in Didi recognized during the first quarter of 2020. (4) During the year ended December 31, 2019, we recognized a $444 million gain on extinguishment of our 2021 and 2022 convertible notes and settlement of derivatives in connection with our IPO, recognized during the second quarter of 2019. |
Stock-Based Compensation Expense
The following table summarizes total stock-based compensation expense by function (in millions):
|
| Three Months Ended December 31, |
| Year Ended December 31, | ||||||||||||
|
| 2019 |
| 2020 |
| 2019 |
| 2020 | ||||||||
|
| (Unaudited) | ||||||||||||||
Operations and support |
| $ | 23 |
|
| $ | 20 |
|
| $ | 454 |
|
| $ | 72 |
|
Sales and marketing |
| 13 |
|
| 13 |
|
| 242 |
|
| 48 |
| ||||
Research and development |
| 136 |
|
| 136 |
|
| 2,958 |
|
| 477 |
| ||||
General and administrative |
| 71 |
|
| 67 |
|
| 942 |
|
| 230 |
| ||||
Total |
| $ | 243 |
|
| $ | 236 |
|
| $ | 4,596 |
|
| $ | 827 |
|
Through May 9, 2019, no stock-based compensation expense had been recognized for certain awards with a performance condition based on the occurrence of a qualifying event, such as an initial public offering (“IPO”), as such qualifying event was not probable. Upon our IPO in May 2019, the performance condition was met and $3.6 billion of stock-based compensation expense was recognized related to these awards.
Key Terms for Our Key Metrics and Non-GAAP Financial Measures
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 investments, (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) goodwill and asset impairments/loss on sale of assets, (xi) acquisition and financing related expenses, (xii) restructuring and related charges and (xiii) other items not indicative of our ongoing operating performance, including COVID-19 response initiatives related payments for financial assistance to Drivers personally impacted by COVID-19, the cost of personal protective equipment distributed to Drivers, Driver reimbursement for their cost of purchasing personal protective equipment, the costs related to free rides and food deliveries to healthcare workers, seniors, and others in need as well as charitable donations. Our board and management find the exclusion of the impact of these COVID-19 response initiatives from Adjusted EBITDA to be useful because it allows us and our investors to assess the impact of these response initiatives on our results of operations.
COVID-19 response initiatives. To support those whose earning opportunities have been depressed as a result of COVID-19, as well as communities hit hard by the pandemic, we have announced and implemented several initiatives, including, in particular, payments for financial assistance to Drivers personally impacted by COVID-19, the cost of personal protective equipment distributed to Drivers, Driver reimbursement for their cost of purchasing personal protective equipment, the costs related to free rides and food deliveries to healthcare workers, seniors, and others in need as well as charitable donations. The payments for financial assistance to Drivers personally impacted by COVID-19 and Driver reimbursement for their cost of purchasing personal protective equipment are recorded as a reduction to revenue. The cost of personal protective equipment distributed to Drivers, the costs related to free rides and food deliveries to healthcare workers, seniors, and others in need as well as charitable donations are recorded as an expense in our costs and expenses.
Driver(s). The term Driver collectively refers to independent providers of ride or delivery services who use our platform to provide Mobility or Delivery services, or both.
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 after we retain our service fee to Drivers. 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.
Gross Bookings. We define Gross Bookings as the total dollar value, including any applicable taxes, tolls, and fees, of Mobility and New Mobility rides, Delivery meal or grocery deliveries, and amounts paid by Freight shippers, 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.
Monthly Active Platform Consumers (“MAPCs”). We define MAPCs as the number of unique consumers who completed a Mobility or New Mobility ride or received a Delivery meal or grocery order 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.
All Other (formerly Other Bets). During the second quarter of 2020, we completed the divestiture of our JUMP business (the “JUMP Divestiture”), which comprised substantially all of the operations of our Other Bets reportable segment. Subsequent to the JUMP Divestiture, the Other Bets segment no longer exists and the continuing activities previously included in the Other Bets segment are immaterial for all periods presented. Certain of these other continuing business activities were migrated to our Mobility segment, whose prior period results were not restated because such business activities were immaterial. The other business activities that were not migrated represent an “all other category separate from other reconciling items” and are presented within the All Other caption. The historical results of the former Other Bets segment are included within the All Other caption. Prior to the second quarter of 2020, the All Other (formerly our Other Bets segment) consisted of multiple investment stage offerings, primarily our New Mobility products that provide consumers with access to rides through a variety of modes, including dockless e-bikes and e-scooters. All Other (formerly our Other Bets segment) also included 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.
Segment Adjusted EBITDA margin. We define each segment’s Adjusted EBITDA margin as the segment Adjusted EBITDA as a percentage of segment 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 revenue as a percentage of Gross Bookings.
Trips. We define Trips as the number of completed consumer Mobility or New Mobility rides and Delivery meal or grocery 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.
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 EBITDA, as well as revenue 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 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 investments, (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) goodwill and asset impairments/loss on sale of assets, (xi) acquisition and financing related expenses, (xii) restructuring and related charges and (xiii) other items not indicative of our ongoing operating performance, including COVID-19 response initiative related payments for financial assistance to Drivers personally impacted by COVID-19, the cost of personal protective equipment distributed to Drivers, Driver reimbursement for their cost of purchasing personal protective equipment, the costs related to free rides and food deliveries to healthcare workers, seniors, and others in need as well as charitable donations.
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. To help our board, management and investors assess the impact of COVID-19 on our results of operations, we are excluding the impacts of COVID-19 response initiative related payments for financial assistance to Drivers personally impacted by COVID-19, the cost of personal protective equipment distributed to Drivers, Driver reimbursement for their cost of purchasing personal protective equipment, the costs related to free rides and food deliveries to healthcare workers, seniors, and others in need as well as charitable donations from Adjusted EBITDA. Our board and management find the exclusion of the impact of these COVID-19 response initiatives from Adjusted EBITDA to be useful because it allows us and our investors to assess the impact of these response initiatives on our results of operations.
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:
Adjusted EBITDA Margin as a Percentage of Revenue
We define Adjusted EBITDA margin as a percentage of revenue as Adjusted EBITDA divided by revenue. Segment Adjusted EBITDA margin as a percentage of revenue is segment Adjusted EBITDA divided by segment revenue.
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 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.
Reconciliation of Non-GAAP Measures
The following table presents reconciliations of Adjusted EBITDA to the most directly comparable GAAP financial measure for each of the periods indicated.
Adjusted EBITDA
|
| Three Months Ended December 31, |
| Year Ended December 31, | ||||||||||||
(In millions) |
| 2019 |
| 2020 |
| 2019 |
| 2020 | ||||||||
|
| (Unaudited) | ||||||||||||||
Adjusted EBITDA reconciliation: |
|
|
|
|
|
|
|
| ||||||||
Net loss attributable to Uber Technologies, Inc. |
| $ | (1,096 | ) |
| $ | (968 | ) |
| $ | (8,506 | ) |
| $ | (6,768 | ) |
Add (deduct): |
|
|
|
|
|
|
|
| ||||||||
Net income (loss) attributable to non-controlling interests, net of tax |
| 5 |
|
| 6 |
|
| (6 | ) |
| (20 | ) | ||||
Provision for (benefit from) income taxes |
| 25 |
|
| 23 |
|
| 45 |
|
| (192 | ) | ||||
Loss from equity method investments |
| 9 |
|
| 7 |
|
| 34 |
|
| 34 |
| ||||
Interest expense |
| 101 |
|
| 118 |
|
| 559 |
|
| 458 |
| ||||
Other (income) expense, net |
| (15 | ) |
| (63 | ) |
| (722 | ) |
| 1,625 |
| ||||
Depreciation and amortization |
| 101 |
|
| 180 |
|
| 472 |
|
| 575 |
| ||||
Stock-based compensation expense |
| 243 |
|
| 236 |
|
| 4,596 |
|
| 827 |
| ||||
Legal, tax, and regulatory reserve changes and settlements |
| — |
|
| (92 | ) |
| 353 |
|
| (35 | ) | ||||
Driver appreciation award |
| — |
|
| — |
|
| 299 |
|
| — |
| ||||
Payroll tax on IPO stock-based compensation |
| — |
|
| — |
|
| 86 |
|
| — |
| ||||
Goodwill and asset impairments/loss on sale of assets |
| — |
|
| 32 |
|
| 8 |
|
| 317 |
| ||||
Acquisition, financing and divestitures related expenses |
| — |
|
| 43 |
|
| — |
|
| 86 |
| ||||
Accelerated lease costs related to cease-use of ROU assets |
| — |
|
| 22 |
|
| — |
|
| 102 |
| ||||
COVID-19 response initiatives |
| — |
|
| 16 |
|
| — |
|
| 106 |
| ||||
Gain on lease arrangement, net |
| — |
|
| — |
|
| — |
|
| (5 | ) | ||||
Restructuring and related charges (credits), net |
| 12 |
|
| (14 | ) |
| 57 |
|
| 362 |
| ||||
Adjusted EBITDA |
| $ | (615 | ) |
| $ | (454 | ) |
| $ | (2,725 | ) |
| $ | (2,528 | ) |
Last Trade: | US$69.36 |
Daily Change: | -1.44 -2.03 |
Daily Volume: | 26,778,384 |
Market Cap: | US$144.270B |
November 07, 2023 September 20, 2023 September 19, 2023 September 14, 2023 |
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