10-QPeriod: Q1 FY2021

Uber Technologies, Inc Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 6, 2021For Securities:UBER

Summary

Uber Technologies, Inc. (UBER) reported its first-quarter 2021 results, showing a significant reduction in net loss to $108 million from $2.9 billion in the prior year period. This improvement was largely driven by a substantial $1.6 billion gain from the sale of its Advanced Technologies Group (ATG) business to Aurora. Revenue, however, declined by 11% year-over-year to $2.9 billion, impacted by a $600 million accrual related to UK driver classification claims. Excluding this accrual, revenue increased by 8%. The company's Mobility segment experienced a sharp revenue decline, reflecting ongoing COVID-19 impacts, while its Delivery segment demonstrated robust growth, with Gross Bookings up 157% year-over-year. Despite the revenue dip, Uber's operational efficiency improved, with a reduction in adjusted EBITDA loss to $359 million. The company ended the quarter with a strengthened liquidity position, holding $5.7 billion in unrestricted cash, cash equivalents, and short-term investments. Key strategic moves, such as the ATG divestiture, position Uber for a more focused future, though ongoing driver classification challenges and competitive pressures remain key considerations for investors.

Financial Highlights

51 data points
Beta

Revenue

$2.90B

Net Income

-$108.00M

-3.7% Net Margin

EPS (Diluted)

$-0.06

Total Assets

$34.66B

Cash & Equivalents

$4.84B

Free Cash Flow

-$682.00M

Financial Statements
Beta
Revenue$2.90B
R&D Expenses$515.00M
Operating Expenses$4.43B
Operating Income-$1.52B
Interest Expense$115.00M
Net Income-$108.00M
EPS (Basic)$-0.06
EPS (Diluted)$-0.06
Shares Outstanding (Basic)1.86B
Shares Outstanding (Diluted)1.86B

Key Highlights

  • 1Uber reported a significantly reduced net loss of $108 million for Q1 2021, compared to $2.9 billion in Q1 2020, aided by a $1.6 billion gain from the sale of its ATG business.
  • 2Revenue decreased 11% to $2.9 billion, but excluding a $600 million UK driver classification accrual, revenue grew 8% year-over-year.
  • 3Delivery Gross Bookings surged 157% year-over-year (constant currency), driven by increased demand and larger basket sizes.
  • 4Mobility Gross Bookings declined 36% year-over-year (constant currency), though showing improvement from the previous quarter's decline.
  • 5Adjusted EBITDA loss narrowed to $359 million from $612 million in Q1 2020, indicating improved operational efficiency.
  • 6The company ended the quarter with $5.7 billion in unrestricted cash, cash equivalents, and short-term investments, indicating a strong liquidity position.
  • 7Uber completed the sale of its ATG business to Aurora for $1.6 billion in cash and stock, a significant strategic divestiture.

Frequently Asked Questions

Uber reported a net loss of $108 million for the first quarter of 2021, a substantial improvement from a net loss of $2.9 billion in the same period of 2020. This significant reduction was primarily driven by a $1.6 billion pre-tax gain from the sale of its ATG Business to Aurora, partially offset by a $600 million accrual for historical UK driver classification claims.

Uber's revenue decreased by 11% to $2.9 billion in Q1 2021 compared to Q1 2020. This decline was mainly due to a $600 million accrual for the resolution of historical claims in the UK related to driver classification. Excluding this accrual, revenue increased by 8% year-over-year, primarily driven by strong growth in the Delivery segment and a recovery in the Mobility segment from prior year lows, despite ongoing COVID-19 impacts.

The sale of Uber's Advanced Technologies Group (ATG) business to Aurora Innovation, Inc., completed in January 2021, is a significant strategic move. It generated a substantial gain of $1.6 billion for Uber and allowed the company to divest its autonomous vehicle development operations, enabling a greater focus on its core Mobility and Delivery platforms. Uber also retained a stake in Aurora.

The driver classification issue continues to have a financial impact. In Q1 2021, Uber recorded a $600 million accrual related to the resolution of historical claims in the UK concerning driver classification, which negatively affected reported revenue. The company also faces ongoing legal and regulatory challenges globally regarding driver classification, which could lead to significant future costs and operational changes.