10-QPeriod: Q1 FY2020

Uber Technologies, Inc Quarterly Report for Q1 Ended Mar 31, 2020

Filed May 8, 2020For Securities:UBER

Summary

Uber Technologies, Inc. (UBER) reported its first quarter 2020 financial results, highlighting continued growth in Eats and Freight segments, albeit overshadowed by the significant impact of the COVID-19 pandemic. While total revenue increased by 14% year-over-year to $3.54 billion, driven by a 54% increase in Eats Gross Bookings and a 57% increase in Freight revenue, the pandemic led to a substantial decline in Rides Gross Bookings (down 3% year-over-year, with a 39% drop in March). The company incurred significant impairment charges totaling $2.1 billion, primarily related to its investments in Didi and Grab, which contributed to a widening net loss of $2.94 billion for the quarter, compared to $1.02 billion in the prior year period. Adjusted EBITDA loss improved by 30% to $612 million, largely due to strong performance in the Rides segment's Adjusted EBITDA, which increased by 203%. Uber ended the quarter with $9.0 billion in unrestricted cash, cash equivalents, and short-term investments, providing a solid liquidity position to navigate the uncertain economic environment.

Financial Highlights

52 data points
Beta

Revenue

$3.25B

Net Income

-$2.94B

-90.4% Net Margin

EPS (Diluted)

$-1.70

Total Assets

$30.09B

Cash & Equivalents

$8.16B

Free Cash Flow

-$661.00M

Financial Statements
Beta
Revenue$3.25B
R&D Expenses$645.00M
Operating Expenses$4.51B
Operating Income-$1.26B
Interest Expense$108.00M
Net Income-$2.94B
EPS (Basic)$-1.70
EPS (Diluted)$-1.70
Shares Outstanding (Basic)1.72B
Shares Outstanding (Diluted)1.72B

Key Highlights

  • 1Total revenue grew 14% year-over-year to $3.54 billion, driven by strong performance in Eats and Freight.
  • 2Eats revenue increased by 53% year-over-year to $819 million, with Gross Bookings up 54% year-over-year on a constant currency basis.
  • 3Freight revenue surged 57% year-over-year to $199 million, reflecting strong growth in shipper and carrier adoption.
  • 4The company incurred significant pre-tax impairment charges of $2.1 billion, primarily related to investments in Didi and Grab, leading to a net loss of $2.94 billion.
  • 5Adjusted EBITDA improved by 30% year-over-year to a loss of $612 million, indicating improved operational efficiency despite pandemic impacts.
  • 6Rides segment's Adjusted EBITDA saw a substantial increase of 203% year-over-year to $581 million, demonstrating operational leverage in the core business.
  • 7Uber ended the quarter with $9.0 billion in unrestricted cash, cash equivalents, and short-term investments, providing ample liquidity.

Frequently Asked Questions

The COVID-19 pandemic significantly impacted Uber's Q1 2020 results, particularly in March. It led to a substantial decline in Rides Gross Bookings (down 3% year-over-year, with a 39% drop in March). The company also incurred $2.1 billion in impairment charges related to its investments in Didi and Grab due to adverse economic and market conditions caused by the pandemic. Uber also implemented COVID-19 response initiatives, providing financial assistance to drivers and free rides/deliveries, which impacted revenue and Adjusted EBITDA.

Uber's Eats and Freight segments showed strong year-over-year revenue growth of 53% and 57%, respectively. The Rides segment's revenue grew by 2%, but its Gross Bookings were negatively impacted by COVID-19 in March. The company also began recognizing revenue from ATG and Other Technology Programs collaboration, totaling $25 million. The Rides segment's Adjusted EBITDA saw significant improvement, increasing by 203%.

Uber ended the first quarter of 2020 with a strong liquidity position, reporting $9.0 billion in unrestricted cash, cash equivalents, and short-term investments. The company stated its belief that its existing cash balance and available credit facilities are sufficient to meet its anticipated cash requirements for at least the next 12 months.

In Q1 2020, Uber completed the acquisition of Careem for approximately $3.0 billion. However, the company also recognized significant impairment charges totaling $2.1 billion, primarily related to its investments in Didi (a $1.7 billion impairment) and Grab (an allowance for credit loss of $173 million), driven by deterioration in economic and market conditions due to COVID-19.