10-QPeriod: Q3 FY2021

Uber Technologies, Inc Quarterly Report for Q3 Ended Sep 30, 2021

Filed November 9, 2021For Securities:UBER

Summary

Uber Technologies, Inc. (UBER) reported its third-quarter 2021 results, showcasing a strong recovery driven by robust growth in both its Mobility and Delivery segments. Total revenue surged by 72% year-over-year to $4.8 billion, significantly exceeding analyst expectations and reflecting increased Gross Bookings across all verticals. The company highlighted a 53% increase in Gross Bookings on a constant currency basis, with Mobility Gross Bookings up 63% and Delivery Gross Bookings up 46%, indicating a strong rebound in customer activity following COVID-19 impacts. While the company still reported a net loss attributable to Uber Technologies, Inc. of $2.4 billion, this was largely due to a significant unrealized loss on investments, particularly in Didi, and stock-based compensation expenses. Excluding these investment-related impacts, the company's operational performance showed improvement, with Adjusted EBITDA turning positive at $8 million, a substantial increase from the previous year. Management's focus on operational efficiency and strategic investments in growth areas like Delivery positions the company for continued recovery and potential future profitability, though ongoing legal and regulatory challenges, particularly around driver classification, remain a key area to monitor.

Financial Highlights

51 data points
Beta

Revenue

$4.84B

Net Income

-$2.42B

-50.0% Net Margin

EPS (Diluted)

$-1.28

Total Assets

$36.88B

Cash & Equivalents

$6.48B

Free Cash Flow

$524.00M

Financial Statements
Beta
Revenue$4.84B
R&D Expenses$493.00M
Operating Expenses$5.42B
Operating Income-$572.00M
Interest Expense$123.00M
Net Income-$2.42B
EPS (Basic)$-1.28
EPS (Diluted)$-1.28
Shares Outstanding (Basic)1.90B
Shares Outstanding (Diluted)1.90B

Key Highlights

  • 1Total revenue increased by 72% year-over-year to $4.8 billion in Q3 2021.
  • 2Gross Bookings grew 53% on a constant currency basis to $23.1 billion.
  • 3Mobility Gross Bookings increased 63% year-over-year on a constant currency basis, driven by recovering trip volumes.
  • 4Delivery Gross Bookings increased 46% year-over-year on a constant currency basis, outpacing trip growth due to higher basket sizes.
  • 5Adjusted EBITDA improved significantly, turning positive at $8 million for the quarter, up from $(625) million in Q3 2020.
  • 6The company ended the quarter with $6.5 billion in unrestricted cash and cash equivalents, maintaining strong liquidity.
  • 7Unrealized losses on investments, notably Didi, significantly impacted the reported net loss, which was $(2.4) billion.

Frequently Asked Questions

Uber reported a strong revenue increase of 72% year-over-year, reaching $4.8 billion in the third quarter of 2021. This growth was driven by a significant rebound in both Mobility and Delivery segments.

Uber's operational profitability improved significantly, with Adjusted EBITDA turning positive at $8 million for Q3 2021, a substantial increase from $(625) million in the same period of the prior year. This improvement reflects recovering demand and greater operational efficiencies.

The reported net loss of $(2.4) billion was heavily influenced by a significant unrealized loss on debt and equity securities, primarily related to Uber's investment in Didi. This loss was partially offset by gains on other investments like Zomato and Aurora. Excluding these investment impacts, the operational performance showed improvement.

Uber maintained a strong liquidity position, ending the quarter with $6.5 billion in unrestricted cash and cash equivalents, providing ample financial flexibility for ongoing operations and strategic initiatives.

Key ongoing risks include the ongoing challenges related to driver classification in various jurisdictions (potentially leading to increased costs), intense competition in the mobility and delivery markets, the impact of macroeconomic conditions on discretionary spending, and the ongoing uncertainties related to the COVID-19 pandemic. Significant investments in new technologies and offerings also carry inherent risks.