Uber CEO Dara Khosrowshahi on Q3 earnings miss, Prop 22 passing in California and more ... Fri, Nov 6 2020 9:35 AM EST. See “Definitions of Non-GAAP Measures” and “Reconciliations of Non-GAAP Measures” sections herein for an explanation and reconciliations of non-GAAP measures used throughout this release. Uber Technologies Inc. reported third quarter 2020 earnings results today. Comparative periods were not recast as the impact on our four operating and reportable segments was not material. Driver or restaurant earnings. The company’s mobility business struggled due to lockdown restrictions in various parts of the globe. We define Adjusted EBITDA as net income (loss), excluding (i) income (loss) from discontinued operations, net of income taxes, (ii) net income (loss) attributable to non-controlling interests, net of tax, (iii) provision for (benefit from) income taxes, (iv) income (loss) from equity method investments, (v) interest expense, (vi) other income (expense), net, (vii) depreciation and amortization, (viii) stock-based compensation expense, (ix) certain legal, tax, and regulatory reserve changes and settlements, (x) goodwill and asset impairments/loss on sale of assets, (xi) acquisition and financing related expenses, (xii) restructuring and related charges and (xiii) other items not indicative of our ongoing operating performance, including COVID-19 response initiative related payments for financial assistance to Drivers personally impacted by COVID-19, the cost of personal protective equipment distributed to Drivers, Driver reimbursement for their cost of purchasing personal protective equipment, the costs related to free rides and food deliveries to healthcare workers, seniors, and others in need as well as charitable donations. Revenue of $3.1 billion, declining 18% year-over-year or 17% on a constant currency basis. We define Mobility Adjusted Net Revenue as Mobility revenue (i) less excess Driver incentives, (ii) less Driver referrals and (iii) the addition of COVID-19 response initiative related payments for financial assistance to Drivers personally impacted by COVID-19. If you experience any issues with this process, please contact us for further assistance. We define Delivery Adjusted Net Revenue as Delivery revenue (i) less excess Driver incentives, (ii) less Driver referrals and (iii) the addition of COVID-19 response initiative related payments for financial assistance to Drivers personally impacted by COVID-19. We also provide announcements regarding our financial performance, including SEC filings, investor events, press and earnings releases, and blogs, on our investor relations website (https://investor.uber.com/). Uber Technologies, Inc. (NYSE: UBER) today announced financial results for the quarter ended September 30, 2020. Benzinga does not provide investment advice. We have included Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses. Uber misses on revenue, $3.13B vs. $3.20B estimated, political fight to preserve their business model. “Our Mobility segment generated $245 million in Adjusted EBITDA, up nearly $200 million quarter-over-quarter, while we also improved Delivery Adjusted EBITDA margins by more than 10 percentage points. Uber lost over a billion dollars in the third quarter of 2020, but its revenues are not as depressing as earlier this year. Monthly Active Platform Consumers (“MAPCs”). Segment Adjusted EBITDA margin demonstrates the margin that we generate after direct expenses. Uber Announces Results for Third Quarter 2020. Key highlights from Uber (UBER) Q3 2020 earnings results Earnings reports to watch for the week of Nov. 2 Uber Technologies, Inc. (UBER) Q2 2020 Earnings Call Transcript The CEO said, "Uber comes back when cities come back. Instead, under Prop 22 in California, Uber will pay qualifying drivers partial benefits, like a minimum base pay that's better than federal minimum wage, and a subsidy on drivers' health insurance, with the subsidy amount based on how many hours they work. Driver incentives refer to payments that we make to Drivers, which are separate from and in addition to the Driver’s portion of the fare paid by the consumer after we retain our service fee to Drivers. Adjusted Net Revenue (“ANR”) declined 20% year-over-year, Mobility ANR declined 52% year-over-year and Delivery ANR grew 190% year-over-year. Uber Tech follows other major Technology sector earnings this month. During the three months ended September 30, 2020, we recorded a reversal of the previously recorded allowance for credit loss on our investment in Grab, initially recognized in the first quarter of 2020. The company can also claim a big victory with Prop 22 in California. To opt in to receive investor email alerts, please enter your email address in the field below and select at least one alert option. During the three and nine months ended September 30, 2019 and 2020, we recorded changes to the fair value of investments in securities accounted for under the fair value option. Mobility Adjusted EBITDA of $245 million, improved +$195 million quarter-over-quarter (-$386 million year-over-year), and delivered 17.9% margin as a percentage of Mobility ANR. Adjusted EBITDA loss of $625 million, up $40 million year-over-year, and down $212 million quarter-over-quarter, and 22.2% margin as a percentage of ANR. Fresh off a victory at the polls that could have upended its business model, the company projected a confident stance in … For example, Driver incentives could include payments we make to Drivers should they choose to take advantage of an incentive offer and complete a consecutive number of trips or a cumulative number of trips on the platform over a defined period of time. The impact of the COVID-19 response initiatives primarily relate to payments for financial assistance to Drivers personally impacted by COVID-19 and Driver reimbursement for their cost of purchasing personal protective equipment. The company reported its Q3 2020 earnings details today, and while the business is still reeling from COVID-19, there are a few spots that show that Uber … These COVID-19 response initiatives are recorded as a reduction to revenue. Add to Calendar. Looking around the world, Uber’s fortunes varied greatly. The term Driver collectively refers to independent providers of ride or delivery services who use our platform to provide Mobility or Delivery services, or both. Besides the political fight to preserve their business model, Uber has faced pandemic-related negative impacts to its main ride hailing business through most of 2020. Adjusted EBITDA excludes certain recurring, non-cash charges, such as depreciation of property and equipment and amortization of intangible assets, and although these are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements; Adjusted EBITDA excludes stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy; Adjusted EBITDA excludes certain restructuring and related charges, part of which may be settled in cash; Adjusted EBITDA excludes other items not indicative of our ongoing operating performance, including COVID-19 response initiative related payments for financial assistance to Drivers personally impacted by COVID-19, the cost of personal protective equipment distributed to Drivers, Driver reimbursement for their cost of purchasing personal protective equipment, the costs related to free rides and food deliveries to healthcare workers, seniors, and others in need as well as charitable donations; Adjusted EBITDA does not reflect period to period changes in taxes, income tax expense or the cash necessary to pay income taxes; Adjusted EBITDA does not reflect the components of other income (expense), net, which primarily includes interest income, foreign currency exchange gains (losses), net, gains on business divestitures, unrealized gain (loss) on debt and equity securities, net, impairment of debt and equity securities and change in fair value of embedded derivatives; and. Trips. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The company reiterated guidance that Uber expects to be profitable on an EBITDA basis by the end of 2021. Adjustments to reconcile net loss to net cash used in operating activities: Gain on extinguishment of convertible notes and settlement of derivatives, Unrealized (gain) loss on debt and equity securities, net, Impairments of goodwill, long-lived assets and other assets. Highs And Lows Of 2020 … Read the full conference call transcript here. Excess Driver incentives refer to cumulative payments, including incentives but excluding Driver referrals, to Drivers that exceed the cumulative revenue that we recognize from Drivers with no future guarantee of additional revenue. The company recorded a net loss of $1.1 billion in Q3 2020… During the nine months ended September 30, 2020, gain on business divestitures, net primarily represents a $154 million gain on the sale of our Uber Eats India operations to Zomato Media Private Limited (“Zomato”) recognized in the first quarter of 2020, partially offset by a $27 million loss on the sale of our JUMP operations to Lime during the second quarter of 2020. Through continued strong execution and cost discipline, we remain confident in our ability to achieve quarterly Adjusted EBITDA profitability before the end of 2021.”, Third Quarter 2020 Financial and Operational Highlights, Monthly Active Platform Consumers (“MAPCs”), GAAP Net loss attributable to Uber Technologies, Inc. (2). Driver referrals. Unrestricted cash, cash equivalents and short-term investments were $7.3 billion at the end of the third quarter. Q3: 2020-11-05 Earnings Summary. The impact of these COVID-19 response initiatives related payments for financial assistance and Driver reimbursement for their cost of purchasing personal protective equipment are recorded as a reduction to revenue. All Other (formerly Other Bets). Uber Freight recorded just $290 million in gross bookings during the third quarter of 2020, a 30% increase from the same time last year. Driver(s). Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Uber's third-quarter earnings showed that its Eats business continues to thrive amid the coronavirus pandemic. Our board and management find the exclusion of the impact of these COVID-19 response initiatives from Adjusted EBITDA to be useful because it allows us and our investors to assess the impact of these response initiatives on our results of operations. See “Definitions of Non-GAAP Measures” and “Reconciliations of Non-GAAP Measures” sections herein for an explanation and reconciliations of non-GAAP measures used throughout this release. These COVID-19 response initiatives are recorded as a reduction to revenue. These limitations include the following: Adjusted EBITDA Margin as a Percentage of ANR. A "no-mask-no-ride" policy is helping the company coax riders back out, despite Covid 19 concerns. Uber Technologies UBER is scheduled to report third-quarter 2020 earnings numbers on Nov 5, after market close. Gross Bookings declined to $14.7 billion, down 10% year-over-year, or 8% on a constant currency basis, … By providing your email address below, you are giving consent to Uber Technologies Inc. to send you the requested investor email alert updates. Since its second-quarter report, Uber raised half a billion dollars in equity funding to fuel the growth of its logistics arm, Uber Freight. 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