Revenue of $3.2 billion grew 13%
quarter-over-quarter (down 16% year-over-year)
Mobility exceeded 1 billion trips in Q4
Delivery Gross Bookings grew 130% YoY with
continued Adjusted EBITDA improvement
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
- Gross Bookings grew 16% quarter-over-quarter (“QoQ”) to $17.2
billion, down 5% year-over-year (“YoY”), or 4% on a constant
currency basis, with Delivery Gross Bookings growing 128% YoY and
Mobility Gross Bookings declining 47% YoY, respectively, on a
constant currency basis.
- Revenue grew 13% QoQ but declined 16% YoY, or 15% on a constant
currency basis. Delivery Revenue grew 19% QoQ and 224% YoY while
Mobility Revenue grew 8% QoQ and declined 52% YoY.
- Net loss attributable to Uber Technologies, Inc. was $968
million, which includes $236 million in stock-based compensation
expense.
- Adjusted EBITDA loss of $(454) million, reduced by $171 million
QoQ and by $161 million YoY, and represented (14.3)% margin as a
percentage of revenue.
- Mobility Adjusted EBITDA of $293 million, up $48 million QoQ
and down $449 million YoY, and represented 19.9% margin as a
percentage of Mobility Revenue.
- Delivery Adjusted EBITDA loss of $(145) million, reduced by $38
million QoQ and by $316 million YoY, and represented (10.7)% margin
as a percentage of Delivery Revenue.
- Unrestricted cash, cash equivalents and short-term investments
were $6.8 billion at the end of the fourth quarter.
“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 (Constant Currency
(1))
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.
(2) Net loss attributable to Uber Technologies, Inc. includes
stock-based compensation expense of $243 million in Q4 2019 and
$236 million in Q4 2020.
Full Year 2020 Financial and Operational Highlights
Year Ended December
31,
(In millions, except percentages)
2019
2020
% Change
% Change (Constant Currency
(1))
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. (2) Net loss attributable to Uber
Technologies, Inc. includes stock-based compensation expense of
$4.6 billion in 2019 and $827 million in 2020.
Results by Offering and Segment
Gross Bookings
Three Months Ended December
31,
(In millions, except percentages)
2019
2020
% Change
% Change (Constant
Currency)
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 (Constant Currency
(1))
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. (2) Includes $25 million of collaboration
revenue from Toyota recognized in each of Q4 2019 and Q4 2020. We
announced the divestiture of our Autonomous Technologies Group
(“ATG”) to Aurora Innovation. Additionally, we divested Elevate to
Joby Aviation. Both transactions were closed in January 2021. **
Percentage not meaningful.
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. (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 Measure” sections herein for an explanation and
reconciliations of non-GAAP measures used throughout this
release.
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
- Membership scaled to over 5 million members: Uber Pass,
Eats Pass and Postmates Unlimited reached 5 million members, with
the membership programs now live in 16 countries. Additionally,
American Express Green, Gold, Platinum & Centurion card members
now have access to 12 months of complimentary Eats Pass
membership.
- Trips grew 22% QoQ to 1.44 billion, with Mobility trips
exceeding 1 billion: Trips across Uber’s platform continued to
recover, with Q4 trips improving 22% QoQ to 1.44 billion. Mobility
trips exceeded 1 billion for the first quarter since Q1 2020.
- Monthly Active Platform Consumers (“MAPCs”) grew 19% QoQ to
93 million: MAPC recovery continued in Q4, with double-digit
QoQ MAPC growth in both Mobility and Delivery. On average, our
monthly active consumer spent over $60 monthly across more than 5
transactions on Uber’s platform.
- Drivers and delivery people: In 2020, Uber paid out over
$22 billion to drivers and delivery people. In 2020, Uber held
several engagement and listening sessions with drivers and delivery
people around the world. Driven by some of this feedback, we
introduced our proposals for a new model for independent work
(IC+), outlining a set of priorities for industry and government
action that we believe will improve the quality of work for the
millions of independent workers who get work through platforms like
Uber’s while preserving the flexibility that we know these workers
value.
- Redesigned Uber app: Continued global rollout on
Android, where the Uber Eats delivery experience is integrated next
to Uber rides, generating incremental user and revenue growth for
Eats. The integration now contributes over 10% of Uber Eats first
orders.
- Uber for Business (U4B): U4B managed Gross Bookings grew
roughly 45% QoQ, with a majority of Bookings now derived from
non-business travel products such as Delivery offerings and Guest
Products. U4B Delivery products grew over 360% QoQ due to strong
holiday demand for meals programs, vouchers, and gift cards, adding
several large customers including Microsoft.
Mobility
- Q4 Mobility Gross Bookings recovered 15% QoQ (down 50%
YoY): In constant currency terms, Q4 Mobility Gross Bookings
were down 47% YoY, with LatAm down 26% YoY, APAC down 35% YoY, EMEA
down 44% YoY, and U.S. & Canada down 59% YoY.
- Revenue up 8% QoQ (-52% YoY or -51% YoY constant
currency): Revenue recovery lagged Gross Bookings recovery with
take rate declining 140bps QoQ to 21.7%, driven by the U.S. &
Canada and EMEA lagging other international markets in the
recovery, and an adverse impact from drivers litigation settlements
(40bps).
- Adjusted EBITDA expanded 20% QoQ (down 61% YoY):
Mobility Adjusted EBITDA improved $48 million QoQ to $293 million
and significantly outpaced QoQ revenue growth, demonstrating
improved operating leverage in the model. Mobility Adjusted EBITDA
margin reached 4.3% of Gross Bookings, compared to 4.1% in Q3 2020
and 5.5% in Q4 2019.
- Uber Reserve: We rolled out our new premium reservations
service, Uber Reserve, to riders in over 20 cities across the U.S.
This service offers an on-time guarantee (or a $50 credit). We
expect to expand the service internationally and to UberX over
2021.
- Hailables: Hailable (Taxi/Auto/Moto) products continued
their strong progress into Q4 with over 50% QoQ Gross Bookings
growth. Powered by increased driver engagement and new launches,
Taxi Gross Bookings grew over 20% YoY, significantly outpacing all
other Uber Mobility products.
- Uber Transit expansion: “Uber and Transit” rolled out in
Mexico City and London, following the Q3 2020 launch in Sydney and
Chicago. This service enables riders to plan and execute multimodal
trips that combine UberX with public transportation on a single
journey, potentially reducing city emissions and congestion. We
also expanded our Journey Planning service to 10+ new cities
including Atlanta, Auckland, Guadalajara, Philadelphia, Rome,
Mumbai, and more.
- Uber and Routematch: Built an API that connects access
to the Uber network with Routematch demand-response software; this
integration will allow agencies to dispatch Uber’s on-demand
services in combination with their services and transit fleets more
effectively.
- 10 million free or discounted rides and deliveries: We
have committed to provide another 10 million free or discounted
rides and deliveries to healthcare workers, seniors, and people in
need in order to facilitate the distribution of the coronavirus
vaccine.
- Expanded Uber Green to 1,400+ cities: Uber Green, our EV
and hybrid ride option, is now available in 1,400+ North American
cities and towns. Riders in cities like Washington D.C, Austin,
Calgary, Houston, Miami, New York City, Miami, Houston, Tucson,
Winnipeg and hundreds more can now choose to take a trip in an
electric or hybrid vehicle.
- Joined the Zero Emissions Transportation Association
(“ZETA”): ZETA is an organization backed by 25+ companies
including Uber, Tesla, and PG&E, advocating for national
policies that will enable 100% electric vehicle (“EV”) sales by
2030.
- Signed on to the Climate Pledge: A commitment co-founded
by Amazon and Global Optimism to take urgent action to meet the
Paris Agreement climate goals 10 years early, which aligns with
Uber’s work to have 100% of rides taking place in zero-emission
vehicles, on public transit, or with micromobility by 2040.
Delivery
- Gross Bookings and Revenue grew triple digits YoY:
Delivery Gross Bookings grew 18% QoQ to $10.1 billion, up 128% YoY
on a constant currency basis with EMEA up 144% YoY, U.S. &
Canada up 142% YoY, LatAm up 130% YoY, and APAC up 79% YoY. Revenue
grew 224% YoY (or 220% YoY constant currency) with take rate
improving 20bps QoQ to 13.5%.
- Adjusted EBITDA improved QoQ and YoY: Delivery Adjusted
EBITDA loss decreased to $(145) million, improving $38 million QoQ
and $316 million YoY. Delivery Adjusted EBITDA loss margin improved
to (1.4)% as a percentage of Gross Bookings, compared to (2.1)% in
Q3 2020 and (10.5)% in Q4 2019.
- Restaurants on the platform exceeded 600K: Active
partnered restaurants on Uber Eats grew by over 75% YoY. Notable
additions include Union Square Hospitality Group, Chicken Salad
Chick, Which Which, Pret a Manger, La Madeleine Country French
Cafe, Wings Etc, Ben & Jerry's, Cinepolis, Fresh Hospitality,
Barberitos in the U.S.; Papa John’s in Canada; Chipotle in the UK;
and Alain Ducasse in France.
- Postmates acquisition closed: Uber closed the previously
announced acquisition of Postmates on December 1, 2020. We believe
the acquisition adds a strong brand and loyal customer base,
complimentary geographies, over 100K partnered restaurants, over $4
billion of run-rate Gross Bookings, and a large and growing
non-food merchandise Delivery as a Service (“DaaS”) offering. DaaS
represented 18% of Postmates’ December orders, with notable
partnerships including Walmart, Apple, and 7-Eleven.
- Uber Eats app redesign: Uber redesigned the Uber Eats
product in October 2020 to help consumers find what they are
looking for faster, boost the Pickup experience, and increase the
discoverability of non-food items—including the addition of new
vertical categories like pharmacy, flowers, toys, and pet supplies
by market.
- Scaling Grocery and non-food delivery: Grocery Gross
Bookings exceeded a $1.5 billion annualized run-rate. Uber
completed the acquisition of Cornershop in Mexico on January 11,
2021, which we believe will accelerate the Grocery business there.
Notable new partnerships include Morton Williams in the U.S.;
H&M and Rexall Pharmacy Group in Canada; Muffato and Raiasil in
Brazil; Lawson, Francfranc and Seiyu in Japan; PX Mart in Taiwan;
and Sainsbury’s and McColls in the UK.
- Ads now live in six countries: Following the successful
U.S. launch for Ads in Q3, Uber rolled out the offering to Canada,
Mexico, France, Japan and Taiwan, with roughly 44K active
restaurants at the end of Q4.
- Super Bowl and Tonight I’ll Be Eating: In October
launched the second chapter of the “Tonight I’ll Be Eating” U.S. ad
campaign, featuring Olympic Gold Medalist Simone Biles and Queer
Eye’s Jonathan Van Ness through TV, online video, out-of-home,
audio/radio, paid social and display advertising. Marketing
continues in Q1 with Uber’s first Super Bowl ad, featuring Mike
Myers, Dana Carvey, and Cardi B with a message to support local
independent restaurants.
- Restaurant partner branded moments: Introduced numerous
consumer campaigns with enterprise partners including: “Throwback
Thursdays” with Burger King and Tim Horton’s, Chipotle x Uber Eats
“Cuffing Season” Menu in partnership with dating app Hinge,
Popeye’s Thanksgiving “Churkey”, and a “Deliver it Forward” program
with Starbucks.
Other Segments and Corporate
- Freight continued to grow new service offerings and improve
efficiency: Freight’s new offerings, such as Uber Freight
Enterprise and API, continued to grow double digits QoQ, driven by
a +45% increase in customers using these offerings. Automated
visibility into loads improved to 78% in Q4, as Electronic Logging
Device (“ELD”) integration roll-out reduces the manual touch points
needed to service a load.
- Freight won additional service awards &
achievements: Uber Freight was recognized with multiple awards
for our technology and outstanding service. These include Niagara
Carrier of the Year, Morton Salt Stellar Performance Award, and
Food Logistics Top 100 Software & Technology Provider. This
continued enterprise and industry recognition further validates the
benefits of our digital model to increase visibility,
predictability, and improve service for our customers.
- ATG and Elevate divestitures: We announced the
divestiture of our Advanced Technologies Group (“ATG”) to Aurora
Innovation. Additionally, we divested Elevate to Joby Aviation.
Both transactions were closed in January 2021. The ATG assets and
liabilities are presented as “Held for sale” on the consolidated
balance sheet as of December 31, 2020.
- Completed $1.15 billion convertible notes offering:
Completed $1.15 billion offering of 0% Convertible Senior Notes due
2025.
Recent Developments
- Agreed to acquire Drizly: We entered into an agreement
to acquire Drizly for approximately $1.1 billion in stock and cash.
Drizly is the leading online alcohol marketplace in the United
States, available and designed to be fully compliant with local
regulations in more than 1,400 cities across a majority of U.S.
states. The acquisition remains subject to regulatory approval and
customary closing conditions and is expected to close within the
first half of 2021.
- Didi stake sale: We completed the sale of approximately
$207 million of our Didi shares. We have entered into an agreement
to sell approximately $293 million additional Didi shares on the
same terms, the closing of which remains subject to certain closing
conditions and is expected to occur in Q1 2021. The aggregate
shares sold in these transactions represent approximately 8% of our
Didi shares as of December 31, 2020.
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.
CONDENSED CONSOLIDATED BALANCE SHEETS (In millions)
(Unaudited)
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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions,
except share amounts which are reflected in thousands, and per
share amounts) (Unaudited)
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.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions)
(Unaudited)
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 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 certain restructuring and related
charges, part of which may be settled in cash;
- Adjusted EBITDA excludes 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;
- 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 primarily includes interest income, foreign
currency exchange gains (losses), net, gains on business
divestitures, net, unrealized gain (loss) on debt and equity
securities, net, impairment of debt and equity securities and
change in fair value of embedded derivatives; and
- Adjusted EBITDA excludes certain legal, tax, and regulatory
reserve changes and settlements that may reduce cash available to
us.
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
)
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