Summary
Uber Technologies, Inc. (UBER) has updated its Q3 2021 financial outlook, driven by strong quarter-to-date trends including initial months of Adjusted EBITDA profitability in July and August 2021. The company now anticipates Q3 Gross Bookings to be between $22.8 billion and $23.2 billion, a slight upward revision from prior guidance. More significantly, Uber expects Q3 Adjusted EBITDA to range from a loss of $25 million to a profit of $25 million, a substantial improvement from the previously guided "better than a loss of $100 million." This positive trajectory indicates progress towards sustained profitability. Looking ahead to Q4 2021, Uber is now forecasting Adjusted EBITDA to be between $0 million and $100 million, signaling a move towards overall Adjusted EBITDA breakeven and profitability for the full year. This forward-looking guidance reflects significant improvements in both the Mobility and Delivery segments. While the company acknowledges ongoing forecasting uncertainty, these updates suggest strong operational execution and a positive shift in financial performance, which should be viewed favorably by investors.
Key Highlights
- 1Uber has achieved initial Adjusted EBITDA profitability in July and August 2021, ahead of previous expectations.
- 2Q3 2021 Gross Bookings outlook revised slightly upwards to $22.8 billion - $23.2 billion.
- 3Q3 2021 Adjusted EBITDA guidance significantly improved to a range of $(25) million to $25 million, compared to prior guidance of "better than a loss of $100 million."
- 4Q4 2021 Adjusted EBITDA is now expected to be between $0 million and $100 million, indicating projected profitability.
- 5Strong improvements in Adjusted EBITDA performance were noted for both the Mobility and Delivery segments.
- 6CEO Dara Khosrowshahi highlighted reaching an "important milestone" and the team's performance over the last 18 months.
- 7CFO Nelson Chai confirmed tracking towards Adjusted EBITDA breakeven in Q3 and sequential improvement in Q4, while continuing to invest in growth.