10-QPeriod: Q2 FY2019

Uber Technologies, Inc Quarterly Report for Q2 Ended Jun 30, 2019

Filed August 9, 2019For Securities:UBER

Summary

Uber Technologies, Inc. (UBER) filed its 10-Q for the period ending June 29, 2019, reporting significant financial activity around its Initial Public Offering (IPO). The company experienced substantial growth in Gross Bookings, Monthly Active Platform Consumers (MAPCs), and Trips, indicating continued platform expansion. However, this growth was accompanied by a significant increase in operating expenses, leading to a substantial loss from operations for both the quarter and the year-to-date period. The IPO, which closed in May 2019, provided a significant influx of capital, boosting cash reserves. The company also saw substantial stock-based compensation expenses recognized due to the IPO, which impacted reported losses. Despite the increased operational costs and losses, Uber continues to invest heavily in its Core Platform and Other Bets segments, particularly in research and development and sales and marketing, aiming for long-term growth and market leadership. The company is also navigating various legal and regulatory challenges across different jurisdictions. Investors should note the substantial increase in stock-based compensation, which significantly impacted operating expenses and net loss. While Gross Bookings and user activity show strong growth, the increasing cost structure and significant losses remain key areas of focus for assessing Uber's path to profitability. The company's strategic investments in areas like ATG and the pending acquisition of Careem also present both opportunities and risks that warrant careful consideration.

Financial Highlights

53 data points
Beta

Revenue

$3.17B

Net Income

-$5.24B

-165.4% Net Margin

EPS (Diluted)

$-4.72

Total Assets

$30.98B

Cash & Equivalents

$11.74B

Free Cash Flow

-$1.07B

Financial Statements
Beta
Revenue$3.17B
R&D Expenses$3.06B
Operating Expenses$8.65B
Operating Income-$5.49B
Interest Expense$151.00M
Net Income-$5.24B
EPS (Basic)$-4.72
EPS (Diluted)$-4.72
Shares Outstanding (Basic)1.11B
Shares Outstanding (Diluted)1.11B

Key Highlights

  • 1Uber's Gross Bookings increased by 31% year-over-year to $15.8 billion for the quarter ending June 30, 2019.
  • 2Monthly Active Platform Consumers (MAPCs) grew by 30% year-over-year to 99 million.
  • 3Trips increased by 35% year-over-year to 1.7 billion for the quarter.
  • 4Revenue grew 14% year-over-year to $3.17 billion for the quarter.
  • 5The company reported a significant loss from operations of $5.49 billion for the quarter, primarily due to increased operating expenses, including substantial stock-based compensation related to the IPO.
  • 6Uber completed its Initial Public Offering (IPO) on May 14, 2019, raising approximately $8.0 billion in net proceeds.
  • 7Stock-based compensation expense surged to $3.94 billion for the quarter, largely driven by IPO-related equity awards.

Frequently Asked Questions

For the quarter ended June 30, 2019, Uber reported a 14% increase in revenue to $3.17 billion. However, the company experienced a substantial loss from operations of $5.49 billion, primarily driven by a significant increase in operating expenses, including a surge in stock-based compensation expenses related to its recent Initial Public Offering (IPO).

Uber completed its IPO on May 14, 2019, raising approximately $8.0 billion in net proceeds. This event also triggered significant stock-based compensation expenses, amounting to $3.94 billion in the quarter, due to the vesting of certain equity awards. This surge in expenses contributed significantly to the reported net loss.

Key operational metrics showed strong growth. Gross Bookings increased by 31% year-over-year to $15.8 billion. Monthly Active Platform Consumers (MAPCs) grew by 30% to 99 million, and the total number of Trips increased by 35% to 1.7 billion, reflecting continued expansion and user engagement across its platform.

Uber's 'Other Bets' segment, which includes offerings like Uber Freight and New Mobility, saw a significant increase in revenue, growing by 175% year-over-year to $195 million for the quarter. However, this segment also reported a contribution loss of $122 million for the quarter, indicating ongoing investment and expansion in these newer business areas.