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Uber Reports Second Quarter 2019 Results

SAN FRANCISCO--(BUSINESS WIRE)--

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

“Our platform strategy continues to deliver strong results, with Trips up 35% and Gross Bookings up 37% in constant currency, compared to the second quarter of last year,” said Dara Khosrowshahi, CEO. “In July, the Uber platform reached over 100 million Monthly Active Platform Consumers for the first time, as we become a more and more integral part of everyday life in cities around the world.”

Financial and Operational Highlights

 

 

Three Months Ended June 30,

(in millions, except per share amounts, and percentages)

 

2018

 

2019

 

% Change

Gross Bookings

 

$

12,012

 

 

$

15,756

 

 

31

%

Monthly Active Platform Consumers (“MAPCs”)

 

76

 

99

 

30

%

Trips

 

1,242

 

1,677

 

35

%

Revenue

 

$

2,768

 

 

$

3,166

 

 

14

%

Loss from operations (1), (2)

 

$

(739

)

 

$

(5,485

)

 

**

Net loss attributable to Uber Technologies, Inc. (1), (2)

 

$

(878

)

 

$

(5,236

)

 

**

Diluted net loss per common share

 

$

(2.01

)

 

$

(4.72

)

 

(135

)%

Adjusted Net Revenue (“ANR”) (1), (3)

 

$

2,574

 

 

$

2,873

 

 

12

%

YoY % Growth at constant currency & ex-Driver appreciation award (3)

 

 

 

 

 

26

%

Core Platform Contribution Margin (as a % of ANR)

 

14.7

%

 

8.2

%

 

**

Adjusted EBITDA (3)

 

$

(292

)

 

$

(656

)

 

(125

)%

(1) Q2 2019 includes a $298 million driver appreciation award made in connection with our initial public offering.

(2) Q2 2019 includes $3.9 billion of stock-based compensation expenses, primarily due to RSU expense recognition in connection with our initial public offering.

(3) “Adjusted Net Revenue,” “YoY % Growth at constant currency & ex-Driver appreciation award” and “Adjusted EBITDA” are non-GAAP measures as defined by the Securities and Exchange Commission (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.

“While we will continue to invest aggressively in growth, we also want it to be healthy growth, and this quarter we made good progress in that direction,” said Nelson Chai, CFO. “In Q2, Adjusted Net Revenue grew 26% year-over-year in constant currency and excluding our Driver Appreciation Award, which is an acceleration from Q1. Adjusted EBITDA also improved meaningfully from Q1, driven by a $337 million sequential improvement in Core Platform Contribution.”

Other Highlights

  • 37% year-over-year growth of Gross Bookings in Q2 2019 at constant currency: Foreign currency negatively impacted reported gross bookings growth by 6% in Q2 2019. Additional data on these trends can be found in the supplementary slide presentation available on our website.
  • Strong adoption of Uber Rewards: Available nationwide in the United States as of May 2019. Enrolled consumers earn points and rewards for Ridesharing and Eats and are twice as likely as unenrolled consumers to be active on both Rides and Eats.
  • Expansion of Driver rewards and benefits: More than 50% of drivers in the United States are enrolled in Uber Pro, our driver rewards program. Outside the US, Uber Pro officially launched in Mexico in early July and is now available to more than half of drivers in Mexico following a successful pilot. In parallel, we announced in Mexico our first driver debit card outside the US, in partnership with BBVA. Uber Pro was also launched on July 1 in three cities in Brazil.
  • Improving consumer Ridesharing selection: In July 2019, we launched Uber Comfort, which is an affordable upgrade to our UberX product offering. Uber Comfort offers higher-rated drivers, newer and larger vehicles, and rider preferences, similar to premium economy on airlines. Uber Comfort is live in 44 cities in the United States and Canada and in eight cities in Australia as of early July. We continue our efforts to enhance the high-end Uber Black experience with enhancements including quiet mode, temperature control, and luggage help.
  • Progress in two of Ridesharing’s priority markets: Germany was one of our fastest-growing Ridesharing countries during Q2 2019, as we are now operating in five large cities as of the end of the quarter. Meanwhile, Buenos Aires, Argentina has become the fifth largest city in the world based on trips, as its citizens take advantage of Ridesharing’s convenience and the local income-earning opportunities provided by becoming a driver.
  • Uber Eats strengthens marketplace liquidity: In Q2 2019, Uber Eats Monthly Active Platform Consumers (MAPCs) grew over 140% year-over-year. Over 40% of new Eats consumers had never used Uber’s platform before. Uber Eats restaurant selection continues to improve, reaching 320,000 restaurant partners at the end of Q2 2019. New delivery fees (service and small-basket fees) resulted in improved Adjusted Net Revenue take rates quarter-over-quarter.
  • Uber Freight continues to add new customers: Uber Freight added new shipping customers across the enterprise, middle market, and small- and medium-sized business segments. Our platform for shippers targets the underserved long tail of small shippers with an automated self-serve tool that helped drive 10X year-over-year revenue on the platform.
  • New Mobility (NeMo) launches new JUMP cities and continues Transit development: JUMP launched in 11 new cities with a focus on Europe. Transit, our in-app integration with public transportation journey planning, was launched in London and Boston and expanded to include in-app ticketing in Denver.
  • Advanced Technologies Group (ATG) makes technological progress: We unveiled our first production car capable of self-driving with Volvo’s newest XC90 SUV, which is designed with a chassis ready to integrate ATG’s self-driving system direct from the factory.
  • Uber Elevate hosted successful Summit: At the third annual Elevate Summit, 1,200 participants including industry leaders, government officials, and ecosystem partners convened in Washington, D.C. to collaborate and showcase products on the future of urban air mobility. We also announced our first international pilot city for Uber Air will be Melbourne, Australia, in addition to Dallas and Los Angeles in the US.
  • Balance sheet strengthened: In May 2019, we received net proceeds, after deducting underwriting discounts and commissions, of approximately $8.0 billion in our initial public offering and $0.5 billion from the PayPal investment, which drove an increase of unrestricted cash and cash equivalents to $11.7 billion from Q1 2019’s $5.7 billion. Q2 2019’s cash and cash equivalents, including restricted cash, increased to $13.7 billion from Q1 2019’s $7.7 billion. We also received an aggregate of $1.0 billion upon the closing of the investment by Toyota, DENSO, and SoftBank in Uber ATG in July 2019.

Webcast and conference call information

A live audio webcast of our second 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 August 8, 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/).

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 June 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, or GAAP, we use the following non-GAAP financial measures: Adjusted Net Revenue; Core Platform Adjusted Net Revenue; Ridesharing Adjusted Net Revenue; Uber Eats Adjusted Net Revenue; YoY % Growth at constant currency & ex-Driver appreciation award; and Adjusted EBITDA. 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.

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.

 

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 June 30, 2019

Assets

 

 

 

 

Cash and cash equivalents

 

$

6,406

 

 

$

11,744

 

Restricted cash and cash equivalents

 

67

 

 

137

 

Accounts receivable, net of allowance of $34 and $39, respectively

 

919

 

 

1,290

 

Prepaid expenses and other current assets

 

860

 

 

1,129

 

Assets held for sale

 

406

 

 

 

Total current assets

 

8,658

 

 

14,300

 

Restricted cash and cash equivalents

 

1,736

 

 

1,809

 

Investments

 

10,355

 

 

10,415

 

Equity method investments

 

1,312

 

 

1,370

 

Property and equipment, net

 

1,641

 

 

1,447

 

Operating lease right-of-use assets

 

 

 

1,337

 

Intangible assets, net

 

82

 

 

78

 

Goodwill

 

153

 

 

167

 

Other assets

 

51

 

 

57

 

Total assets

 

$

23,988

 

 

$

30,980

 

Liabilities, mezzanine equity and stockholders’ equity (deficit)

 

 

 

 

Accounts payable

 

$

150

 

 

$

167

 

Short-term insurance reserves

 

941

 

 

977

 

Operating lease liabilities, current

 

 

 

180

 

Accrued and other current liabilities

 

3,157

 

 

4,246

 

Liabilities held for sale

 

11

 

 

 

Total current liabilities

 

4,259

 

 

5,570

 

Long-term insurance reserves

 

1,996

 

 

2,217

 

Long-term debt, net of current portion

 

6,869

 

 

4,526

 

Operating lease liabilities, non-current

 

 

 

1,274

 

Other long-term liabilities

 

4,072

 

 

1,485

 

Total liabilities

 

17,196

 

 

15,072

 

Commitments and contingencies

 

 

 

 

Mezzanine equity

 

 

 

 

Redeemable non-controlling interest

 

 

 

(14

)

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

 

 

 

Stockholders’ equity (deficit)

 

 

 

 

Common stock, $0.00001 par value, 2,696,114 and 5,000,000 shares authorized, 457,189 and 1,697,614 shares issued and outstanding, respectively

 

 

 

 

Additional paid-in capital

 

668

 

 

30,193

 

Accumulated other comprehensive loss

 

(188

)

 

(167

)

Accumulated deficit

 

(7,865

)

 

(14,104

)

Total stockholders’ equity (deficit)

 

(7,385

)

 

15,922

 

Total liabilities, mezzanine equity, and stockholders’ equity (deficit)

 

$

23,988

 

 

$

30,980

 

 

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 June 30,

Six Months Ended June 30,

 

 

2018

 

2019

 

2018

 

2019

Revenue

 

$

2,768

 

 

$

3,166

 

 

$

5,352

 

 

$

6,265

 

Costs and expenses

 

 

 

 

 

 

 

 

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

 

1,342

 

 

1,740

 

 

2,498

 

 

3,421

 

Operations and support

 

349

 

 

864

 

 

721

 

 

1,298

 

Sales and marketing

 

715

 

 

1,222

 

 

1,392

 

 

2,262

 

Research and development

 

365

 

 

3,064

 

 

705

 

 

3,473

 

General and administrative

 

638

 

 

1,638

 

 

1,067

 

 

2,061

 

Depreciation and amortization

 

98

 

 

123

 

 

186

 

 

269

 

Total costs and expenses

 

3,507

 

 

8,651

 

 

6,569

 

 

12,784

 

Loss from operations

 

(739

)

 

(5,485

)

 

(1,217

)

 

(6,519

)

Interest expense

 

(160

)

 

(151

)

 

(292

)

 

(368

)

Other income (expense), net

 

63

 

 

398

 

 

5,000

 

 

658

 

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

 

(836

)

 

(5,238

)

 

3,491

 

 

(6,229

)

Provision for (benefit from) income taxes

 

28

 

 

(2

)

 

604

 

 

17

 

Loss from equity method investment, net of tax

 

(14

)

 

(10

)

 

(17

)

 

(16

)

Net income (loss) including redeemable non-controlling interest

 

(878

)

 

(5,246

)

 

2,870

 

 

(6,262

)

Less: net loss attributable to redeemable non-controlling interest, net of tax

 

 

 

(10

)

 

 

 

(14

)

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

 

$

(878

)

 

$

(5,236

)

 

$

2,870

 

 

$

(6,248

)

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

 

 

 

 

 

 

 

 

Basic

 

$

(1.99

)

 

$

(4.72

)

 

$

1.33

 

 

$

(7.97

)

Diluted

 

$

(2.01

)

 

$

(4.72

)

 

$

1.20

 

 

$

(7.98

)

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

 

 

 

 

 

 

 

 

Basic

 

440,958

 

 

1,110,704

 

 

439,022

 

 

783,900

 

Diluted

 

441,408

 

 

1,110,704

 

 

476,394

 

 

783,982

 

 

UBER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

2018

 

2019

Cash flows from operating activities

 

 

 

 

Net income (loss) including redeemable non-controlling interest

 

$

2,870

 

 

$

(6,262

)

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

 

 

 

 

Depreciation and amortization

 

186

 

 

269

 

Bad debt expense

 

22

 

 

67

 

Stock-based compensation

 

81

 

 

3,952

 

Gain on extinguishment of convertible notes and settlement of derivative

 

 

 

(444

)

Gain on business divestitures

 

(3,201

)

 

 

Deferred income tax

 

470

 

 

(31

)

Revaluation of derivative liabilities

 

402

 

 

(58

)

Accretion of discount on long-term debt

 

149

 

 

78

 

Payment-in-kind interest

 

35

 

 

10

 

Loss on disposal of property and equipment

 

37

 

 

13

 

Impairment on long-lived assets held for sale

 

79

 

 

 

Loss from equity method investment

 

17

 

 

16

 

Gain on debt and equity securities, net

 

(1,984

)

 

(14

)

Non-cash deferred revenue

 

 

 

(26

)

Gain on forfeiture of unvested warrants and related share repurchases

 

(152

)

 

 

Unrealized foreign currency transactions

 

48

 

 

(5

)

Other

 

6

 

 

(1

)

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

 

 

 

 

Accounts receivable

 

(21

)

 

(436

)

Prepaid expenses and other assets

 

(312

)

 

(178

)

Accounts payable

 

(52

)

 

9

 

Accrued insurance reserve

 

516

 

 

257

 

Accrued expenses and other liabilities

 

354

 

 

1,140

 

Net cash used in operating activities

 

(450

)

 

(1,644

)

Cash flows from investing activities

 

 

 

 

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

 

230

 

 

41

 

Purchase of property and equipment

 

(209

)

 

(277

)

Purchase of equity method investments

 

(423

)

 

 

Proceeds from business disposal, net of cash divested

 

 

 

293

 

Acquisition of businesses, net of cash acquired

 

(64

)

 

(7

)

Net cash provided by (used in) investing activities

 

(466

)

 

50

 

Cash flows from financing activities

 

 

 

 

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

 

 

 

7,977

 

Taxes paid related to net share settlement of equity awards

 

 

 

(1,368

)

Proceeds from issuance of common stock related to private placement

 

 

 

500

 

Proceeds from exercise of stock options, net of repurchases

 

15

 

 

5

 

Repurchase of outstanding shares

 

(9

)

 

 

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

 

1,478

 

 

 

Principal repayment on term loan

 

(6

)

 

(13

)

Principal repayment on revolving lines of credit

 

(197

)

 

 

Principal payments on capital and finance leases

 

(34

)

 

(72

)

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

 

1,250

 

 

 

Dissolution of joint venture and subsequent proceeds

 

38

 

 

 

Other

 

(59

)

 

 

Net cash provided by financing activities

 

2,476

 

 

7,029

 

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

 

(102

)

 

12

 

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

 

1,458

 

 

5,447

 

Cash and cash equivalents, and restricted cash and cash equivalents

 

 

 

 

Beginning of period

 

5,828

 

 

8,209

 

Reclassification from (to) assets held for sale during the period

 

(6

)

 

34

 

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

 

$

7,280

 

 

$

13,690

 

 

 

 

 

 

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

 

 

 

 

Cash and cash equivalents

 

$

5,647

 

 

$

11,744

 

Restricted cash and cash equivalents-current

 

118

 

 

137

 

Restricted cash and cash equivalents-non-current

 

1,515

 

 

1,809

 

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

 

$

7,280

 

 

$

13,690

 

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

 

 

Cash paid for:

 

 

 

 

Interest, net of amount capitalized

 

$

43

 

 

$

166

 

Income taxes, net of refunds

 

161

 

 

80

 

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

 

(12

)

 

5

 

Financed construction projects

 

86

 

 

 

Capital and finance lease obligations

 

60

 

 

150

 

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 June 30,

 

Six Months Ended June 30,

 

 

2018

 

2019

 

2018

 

2019

 

 

(Unaudited)

Interest income

 

$

24

 

 

$

64

 

 

$

42

 

 

$

108

 

Foreign currency exchange gains (losses), net

 

(37

)

 

(7

)

 

(24

)

 

(8

)

Gain on business divestitures (1)

 

40

 

 

 

 

3,201

 

 

 

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

 

 

 

(2

)

 

1,984

 

 

14

 

Change in fair value of embedded derivatives

 

(35

)

 

(117

)

 

(402

)

 

58

 

Gain on extinguishment of convertible notes and settlement of derivative

 

 

 

444

 

 

 

 

444

 

Other

 

71

 

 

16

 

 

199

 

 

42

 

Other income (expense), net

 

$

63

 

 

$

398

 

 

$

5,000

 

 

$

658

 

(1)

During the six months ended June 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 six months ended June 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 for the three and six months ended June 30, 2018 and 2019 (in millions):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2018

 

2019

 

2018

 

2019

 

 

(Unaudited)

Operations and support

 

$

2

 

 

$

404

 

 

$

7

 

 

$

405

 

Sales and marketing

 

1

 

 

212

 

 

4

 

 

213

 

Research and development

 

5

 

 

2,557

 

 

11

 

 

2,560

 

General and administrative

 

12

 

 

768

 

 

61

 

 

774

 

Total

 

$

20

 

 

$

3,941

 

 

$

83

 

 

$

3,952

 

Results by Offering and Segment

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(in millions, except percentages)

 

2018

 

2019

 

% Change

 

2018

 

2019

 

% Change

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Ridesharing revenue

 

$

2,291

 

 

$

2,348

 

 

2

%

 

$

4,471

 

 

$

4,724

 

 

6

%

Uber Eats revenue

 

346

 

 

595

 

 

72

%

 

629

 

 

1,131

 

 

80

%

Vehicle Solutions revenue

 

34

 

 

3

 

 

(91

)%

 

89

 

 

13

 

 

(85

)%

Other revenue

 

26

 

 

25

 

 

(4

)%

 

52

 

 

57

 

 

10

%

Total Core Platform revenue

 

2,697

 

 

2,971

 

 

10

%

 

5,241

 

 

5,925

 

 

13

%

Total Other Bets revenue

 

71

 

 

195

 

 

175

%

 

111

 

 

340

 

 

206

%

Total revenue

 

$

2,768

 

 

$

3,166

 

 

14

%

 

$

5,352

 

 

$

6,265

 

 

17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

United States and Canada

 

$

1,493

 

 

$

1,776

 

 

19

%

 

$

2,880

 

 

$

3,526

 

 

22

%

Latin America ("LATAM")

 

547

 

 

417

 

 

(24

)%

 

1,065

 

 

867

 

 

(19

)%

Europe, Middle East and Africa ("EMEA")

 

413

 

 

502

 

 

22

%

 

801

 

 

989

 

 

23

%

Asia Pacific ("APAC")

 

244

 

 

276

 

 

13

%

 

495

 

 

543

 

 

10

%

Total Core Platform revenue

 

$

2,697

 

 

$

2,971

 

 

10

%

 

$

5,241

 

 

$

5,925

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Bookings (1)

 

 

 

 

 

 

 

 

 

 

 

 

Ridesharing

 

$

10,166

 

 

$

12,188

 

 

20

%

 

$

19,546

 

 

$

23,634

 

 

21

%

Uber Eats

 

1,774

 

 

3,386

 

 

91

%

 

3,247

 

 

6,457

 

 

99

%

Total Core Platform

 

11,940

 

 

15,574

 

 

30

%

 

22,793

 

 

30,091

 

 

32

%

Other Bets

 

72

 

 

182

 

 

153

%

 

112

 

 

314

 

 

180

%

Total

 

$

12,012

 

 

$

15,756

 

 

31

%

 

$

22,905

 

 

$

30,405

 

 

33

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Ridesharing (2)

 

$

2,223

 

 

$

2,314

 

 

4

%

 

$

4,342

 

 

$

4,649

 

 

7

%

Uber Eats (3)

 

220

 

 

337

 

 

53

%

 

403

 

 

576

 

 

43

%

Other

 

60

 

 

27

 

 

(55

)%

 

141

 

 

69

 

 

(51

)%

Total Core Platform

 

2,503

 

 

2,678

 

 

7

%

 

4,886

 

 

5,294

 

 

8

%

Other Bets

 

71

 

 

195

 

 

175

%

 

111

 

 

340

 

 

206

%

Total

 

$

2,574

 

 

$

2,873

 

 

12

%

 

$

4,997

 

 

$

5,634

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution Profit (Loss) by Segment(1)

 

 

 

 

 

 

 

 

 

 

 

 

Core Platform

 

$

369

 

 

$

220

 

 

(40

)%

 

$

796

 

 

$

103

 

 

(87

)%

Other Bets

 

(28

)

 

(122

)

 

**

 

(48

)

 

(193

)

 

**

Total

 

$

341

 

 

$

98

 

 

(71

)%

 

$

748

 

 

$

(90

)

 

(112

)%

(1)

Excluding impact of our 2018 Divested Operations.

(2)

Q2 2019 includes a $287 million driver appreciation award in connection with our initial public offering.

(3)

Q2 2019 includes an $11 million driver appreciation award in connection with our initial public offering.

**

Percentage not meaningful.

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 redeemable non-controlling interest, 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 reserves and settlements, (x) asset impairment/loss on sale of assets, (xi) acquisition and financing related expenses, and (xii) restructuring charges.

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.

Core Platform. Core Platform refers to one of the two operating segments that we use to manage our business. Core Platform consists primarily of Ridesharing and Uber Eats.

Core Platform Adjusted Net Revenue. We define Core Platform Adjusted Net Revenue as Core Platform revenue less (i) excess Driver incentives and (ii) Driver referrals.

Core Platform Contribution Margin. We define Core Platform Contribution Margin as Core Platform Contribution Profit (Loss) as a percentage of Core Platform Adjusted Net Revenue. Core Platform Contribution Margin demonstrates the margin that we generate after direct expenses. We believe that Core Platform Contribution Margin is a useful indicator of the economics of our Core Platform, as it does not include indirect unallocated research and development and general and administrative expenses (including expenses for our Advanced Technologies Group and Other Technology Programs).

Core Platform Contribution Profit (Loss). We define Core Platform Contribution Profit (Loss) as Core Platform revenue less the following direct costs and expenses of our Core Platform: (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. Core Platform Contribution Profit (Loss) also reflects any applicable exclusions from Adjusted EBITDA and excludes the impact of our 2018 Divested Operations.

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, Uber Eats meal deliveries, and amounts paid by shippers for Uber 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 Ridesharing or New Mobility ride or received an Uber Eats meal on our platform at least once in a given month, averaged over each month in the quarter. MAPCs presented for an annual period are MAPCs for the fourth quarter of the year. MAPCs exclude the impact of our 2018 Divested Operations.

Other Bets. Other Bets refers to one of the two operating segments that we use to manage our business. Other Bets in 2017 and 2018 consisted primarily of Uber Freight and in 2018 also included New Mobility.

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 Ridesharing or New Mobility rides and Uber 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, 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 Core Platform Adjusted Net Revenue as Core Platform revenue less (i) excess Driver incentives and (ii) Driver referrals. We define Ridesharing Adjusted Net Revenue as Ridesharing revenue less (i) excess Driver incentives and (ii) Driver referrals. We define Uber Eats Adjusted Net Revenue as Uber Eats revenue less (i) excess Driver incentives and (ii) Driver referrals. 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 Uber 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 redeemable non-controlling interest, 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 reserves and settlements, (x) asset impairment/loss on sale of assets, (xi) acquisition and financing related expenses, and (xii) restructuring charges.

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:

  • Adjusted EBITDA excludes certain recurring, non-cash charges, such as depreciation of property and equipment and amortization of intangible assets, and although these are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
  • Adjusted EBITDA excludes stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy;
  • Adjusted EBITDA excludes other non-recurring items not indicative of our ongoing operating performance;
  • Adjusted EBITDA does not reflect period to period changes in taxes, income tax expense or the cash necessary to pay income taxes;
  • Adjusted EBITDA does not reflect the components of other income (expense), net, which includes interest income, foreign currency exchange gains (losses), net, gain on divestitures, gain on debt and equity securities, net, and change in fair value of embedded derivatives; and
  • Adjusted EBITDA excludes certain legal, tax, and regulatory reserves and settlements that may reduce cash available to us.

Reconciliations of Non-GAAP Measures

Adjusted Net Revenue

The following tables present reconciliations of Adjusted Net Revenue, Core Platform Adjusted Net Revenue, Ridesharing Adjusted Net Revenue, Uber Eats Adjusted Net Revenue and Adjusted EBITDA to the most directly comparable GAAP financial measures for each of the periods indicated (in millions):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2018

 

2019

 

2018

 

2019

Adjusted Net Revenue reconciliation:

 

 

 

 

 

 

 

 

Revenue

 

$

2,768

 

 

$

3,166

 

 

$

5,352

 

 

$

6,265

 

Deduct:

 

 

 

 

 

 

 

 

Excess Driver incentives

 

(163

)

 

(263

)

 

(292

)

 

(566

)

Driver referrals

 

(31

)

 

(30

)

 

(63

)

 

(65

)

Adjusted Net Revenue

 

$

2,574

 

 

$

2,873

 

 

$

4,997

 

 

$

5,634

 

 

 

 

 

 

 

 

 

 

Core Platform Adjusted Net Revenue reconciliation(1):

 

 

 

 

 

 

 

 

Core Platform revenue

 

$

2,697

 

 

$

2,971

 

 

$

5,241

 

 

$

5,925

 

Deduct:

 

 

 

 

 

 

 

 

Excess Driver incentives

 

(163

)

 

(263

)

 

(292

)

 

(566

)

Driver referrals

 

(31

)

 

(30

)

 

(63

)

 

(65

)

Core Platform Adjusted Net Revenue

 

$

2,503

 

 

$

2,678

 

 

$

4,886

 

 

$

5,294

 

 

 

 

 

 

 

 

 

 

Ridesharing Adjusted Net Revenue reconciliation:

 

 

 

 

 

 

 

 

Ridesharing revenue

 

$

2,291

 

 

$

2,348

 

 

$

4,471

 

 

$

4,724

 

Deduct:

 

 

 

 

 

 

 

 

Excess Driver incentives

 

(39

)

 

(9

)

 

(71

)

 

(21

)

Driver referrals

 

(29

)

 

(25

)

 

(58

)

 

(54

)

Ridesharing Adjusted Net Revenue

 

$

2,223

 

 

$

2,314

 

 

$

4,342

 

 

$

4,649

 

 

 

 

 

 

 

 

 

 

Uber Eats Adjusted Net Revenue reconciliation:

 

 

 

 

 

 

 

 

Uber Eats revenue

 

$

346

 

 

$

595

 

 

$

629

 

 

$

1,131

 

Deduct:

 

 

 

 

 

 

 

 

Excess Driver incentives

 

(124

)

 

(253

)

 

(221

)

 

(544

)

Driver referrals

 

(2

)

 

(5

)

 

(5

)

 

(11

)

Uber Eats Adjusted Net Revenue

 

$

220

 

 

$

337

 

 

$

403

 

 

$

576

 

(1) Core Platform Adjusted Net Revenue includes Ridesharing Adjusted Net Revenue, Uber Eats Adjusted Net Revenue, and Other Core Platform Adjusted Net Revenue. Other Core Platform Adjusted Net Revenue, which primarily consists of revenue associated with our Vehicle Solutions activities, does not include excess Driver incentives or Driver referrals and is equal to GAAP Other Core Platform revenue in all periods.

The comparability of the results for the periods presented above was impacted by our 2018 Divested Operations. The 2018 Divested Operations decreased Adjusted Net Revenue by $4 million during the six months ended June 30, 2018 due to excess Driver incentives and Driver referrals for the 2018 Divested Operations being greater than revenue for the 2018 Divested Operations in the period.

YoY % Growth at constant currency & ex-Driver appreciation award

The following table presents the reconciliation of YoY % Growth at constant currency & ex-Driver appreciation award to the most directly comparable GAAP financial measures for the second quarter of 2019 compared to the same period in 2018:

 

 

YoY % Growth

YoY % Growth at constant currency & ex-Driver appreciation award

 

 

Revenue

 

14

%

Excess Driver incentives

 

(2

)%

Driver referrals

 

%

Adjusted Net Revenue

 

12

%

Add back:

 

 

Driver appreciation award

 

11

%

 

 

23

%

Add:

 

 

Constant currency impact

 

3

%

YoY % Growth at constant currency & ex-Driver appreciation award

 

26

%

Adjusted EBITDA

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2018

 

2019

 

2018

 

2019

Adjusted EBITDA reconciliation:

 

 

 

 

 

 

 

 

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

 

$

(878

)

 

$

(5,236

)

 

$

2,870

 

 

$

(6,248

)

Add (deduct):

 

 

 

 

 

 

 

 

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

 

 

 

(10

)

 

 

 

(14

)

Provision for (benefit from) income taxes

 

28

 

 

(2

)

 

604

 

 

17

 

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

 

14

 

 

10

 

 

17

 

 

16

 

Interest expense

 

160

 

 

151

 

 

292

 

 

368

 

Other (income) expense, net

 

(63

)

 

(398

)

 

(5,000

)

 

(658

)

Depreciation and amortization

 

98

 

 

123

 

 

186

 

 

269

 

Stock-based compensation expense

 

20

 

 

3,941

 

 

83

 

 

3,952

 

Legal, tax, and regulatory reserves and settlements

 

252

 

 

380

 

 

252

 

 

380

 

Driver appreciation award

 

 

 

299

 

 

 

 

299

 

Payroll tax on IPO stock-based compensation

 

 

 

86

 

 

 

 

86

 

Asset impairment/loss on sale of assets

 

81

 

 

 

 

113

 

 

8

 

Acquisition and financing related expenses

 

 

 

 

 

15

 

 

 

Gain on restructuring of lease arrangement

 

(4

)

 

 

 

(4

)

 

 

Adjusted EBITDA

 

$

(292

)

 

$

(656

)

 

$

(572

)

 

$

(1,525

)

The comparability of the results for the periods presented above was impacted by our 2018 Divested Operations. During the three and six months ended June 30, 2018, 2018 Divested Operations decreased net income (loss) attributable to Uber Technologies, Inc. by $16 million and $118 million, respectively.

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