8-KRegulation FD

Uber Technologies, Inc 8-K Report, Regulation FD Disclosure (Sep 21, 2021)

Filed September 21, 2021For Securities:UBER

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.

Frequently Asked Questions

The updated outlook is primarily driven by stronger-than-anticipated quarter-to-date trends in Q3 2021, including the company achieving Adjusted EBITDA profitability in July and August 2021, which were ahead of prior expectations.

The new guidance for Q3 2021 Adjusted EBITDA is between $(25) million and $25 million. This is a significant improvement from the previously guided "better than a loss of $100 million."

For Q4 2021, Uber now expects to deliver Adjusted EBITDA between $0 million and $100 million, which indicates a move towards achieving overall Adjusted EBITDA profitability.

Yes, Uber acknowledges that significant forecasting uncertainty remains a factor and may provide an updated forecast on their Q3 earnings call if deemed appropriate. They also note that actual results may differ materially from estimates.