Uber Announces Results for First Quarter 2023

Gross Bookings grew 19% year-over-year and 22% year-over-year on a constant currency basis

Mobility and Delivery Adjusted EBITDA margins at all-time quarterly highs

Operating cash flow of $606 million; Record free cash flow of $549 million

SAN FRANCISCO–(BUSINESS WIRE)–Uber Technologies, Inc. (NYSE: UBER) today announced financial results for the quarter ended March 31, 2023.

Financial Highlights for First Quarter 2023

• Gross Bookings grew 19% year-over-year (“YoY”) to $31.4 billion, or 22% on a constant currency basis, with Mobility Gross Bookings of $15.0 billion (+40% YoY or +43% YoY constant currency) and Delivery Gross Bookings of $15.0 billion (+8% YoY or +12% YoY constant currency). Trips during the quarter grew 24% YoY to 2.1 billion, or approximately 24 million trips per day on average.
• Revenue grew 29% YoY to $8.8 billion, or 33% on a constant currency basis, with Revenue growth significantly outpacing Gross Bookings growth due to a change in the business model for our UK Mobility business.
• Net loss attributable to Uber Technologies, Inc. was $157 million, which includes a $320 million net benefit (pre-tax) primarily due to net unrealized gains related to the revaluation of Uber’s equity investments.
• Adjusted EBITDA of $761 million, up $593 million YoY. Adjusted EBITDA margin as a percentage of Gross Bookings was 2.4%, up from 0.6% in Q1 2022. Incremental margin as a percentage of Gross Bookings was 12.0% YoY.
• Net cash provided by operating activities was $606 million and free cash flow, defined as net cash flows from operating activities less capital expenditures, was $549 million.
• Unrestricted cash, cash equivalents, and short-term investments were $4.2 billion at the end of the first quarter.

“We significantly accelerated Q1 trip growth to 24% from 19% last quarter, with Mobility trip growth of 32%, as a result of improved earner and consumer engagement,” said Dara Khosrowshahi, CEO. “Looking ahead, we are focused on extending our product, scale and platform advantages to sustain market-leading top and bottom-line growth beyond 2023.”

“We delivered record profitability and free cash flow in Q1, and we are poised to expand profitability again in Q2,” said Nelson Chai, CFO. “We continued to actively manage our balance sheet, exiting our equity position in Yandex.Taxi and refinancing our term loans, and remain focused on disciplined capital allocation over the coming years.”

Outlook for Q2 2023

For Q2 2023, we anticipate:

• Gross Bookings of $33.0 billion to $34.0 billion
• Adjusted EBITDA of $800 million to $850 million

Financial Highlights for the First Quarter 2023 (continued)

Mobility

• Gross Bookings of $15.0 billion: Mobility Gross Bookings grew 43% YoY on a constant currency basis. On a sequential basis, Mobility Gross Bookings grew 1% quarter-over-quarter (“QoQ”).
• Revenue of $4.3 billion: Mobility Revenue grew 72% YoY and 5% QoQ. The YoY increase was primarily driven by a $1.1 billion benefit related to a UK business model change that classifies most driver payments and incentives as cost of revenue. Mobility Take Rate of 28.9% increased 540 bps YoY and increased 110 bps QoQ. The UK business model change impacting revenue represented a 750 bps net benefit to Take Rate in the quarter.
• Adjusted EBITDA of $1.1 billion: Mobility Adjusted EBITDA increased $442 million YoY and $48 million QoQ. Mobility Adjusted EBITDA margin was 7.1% of Gross Bookings compared to 5.8% in Q1 2022 and 6.8% in Q4 2022. Mobility Adjusted EBITDA margin improvement YoY was primarily driven by better cost leverage from higher volume.

Delivery

• Gross Bookings of $15.0 billion: Delivery Gross Bookings grew 12% YoY on a constant currency basis. Delivery Gross Bookings in US&CAN were up 11% YoY and in all other markets were up 12% YoY on a constant currency basis.
• Revenue of $3.1 billion: Delivery Revenue grew 23% YoY and 6% QoQ. Take Rate of 20.6% grew 250 bps YoY and grew 10 bps QoQ. Business model changes in some countries that classify certain payments and incentives as cost of revenue benefited Delivery Take Rate by 430 bps in the quarter (compared to 400 bps benefit in Q1 2022 and 480 bps benefit in Q4 2022).
• Adjusted EBITDA of $288 million: Delivery Adjusted EBITDA grew $258 million YoY and $47 million QoQ, driven by higher volumes and increased Advertising revenue, as well as decreased marketing costs. Delivery Adjusted EBITDA margin as a percentage of Gross Bookings reached 1.9%, compared to 0.2% in Q1 2022 and 1.7% in Q4 2022.

Freight

• Revenue of $1.4 billion: Freight Revenue declined 23% YoY and 9% QoQ driven by lower revenue per load and volume, both a consequence of the challenging freight market cycle.
• Adjusted EBITDA loss of $23 million: Freight Adjusted EBITDA declined $25 million YoY and $15 million QoQ. Freight Adjusted EBITDA margin as a percentage of Gross Bookings declined 1.7 percentage points YoY to (1.6)%.

Corporate

• Corporate G&A and Platform R&D: Corporate G&A and Platform R&D expenses of $564 million, compared to $482 million in Q1 2022, and $580 million in Q4 2022. On a YoY basis, Corporate G&A and Platform R&D remained flat as a percentage of Gross Bookings.

GAAP and Non-GAAP Costs and Operating Expenses

• Cost of revenue excluding D&A: GAAP cost of revenue equaled non-GAAP cost of revenue and was $5.3 billion, representing 16.7% of Gross Bookings, compared to 15.2% and 17.3% in Q1 2022 and Q4 2022, respectively. On a YoY basis, non-GAAP cost of revenue as a percentage of Gross Bookings increased due to the classification of certain Delivery and Mobility payments as cost of revenue attributable to business model changes in some countries.
• GAAP and Non-GAAP operating expenses (Non-GAAP operating expenses exclude certain amounts as further detailed in the “Reconciliations of Non-GAAP Measures” section):
  • Operations and support: GAAP operations and support was $640 million. Non-GAAP operations and support was $591 million, representing 1.9% of Gross Bookings, compared to 2.0% and 1.8% in Q1 2022 and Q4 2022, respectively. On a YoY basis, non-GAAP operations and support as a percentage of Gross Bookings decreased due to improved fixed cost leverage.
  • Sales and marketing: GAAP sales and marketing was $1.3 billion. Non-GAAP sales and marketing was $1.2 billion, representing 3.9% of Gross Bookings, compared to 4.7% and 3.6% in Q1 2022 and Q4 2022, respectively. On a YoY basis, non-GAAP sales and marketing as a percentage of Gross Bookings decreased due to a decrease in consumer discounts, credits and refunds.
  • Research and development: GAAP research and development was $775 million. Non-GAAP research and development was $474 million, representing 1.5% of Gross Bookings, compared to 1.5% in both Q1 2022 and Q4 2022, respectively. As a percentage of Gross Bookings, non-GAAP research and development remained flat on a YoY and QoQ basis.
  • General and administrative: GAAP general and administrative was $942 million. Non-GAAP general and administrative was $501 million, representing 1.6% of Gross Bookings, compared to 1.9% and 1.7% in Q1 2022 and Q4 2022, respectively. On a YoY basis, non-GAAP general and administrative as a percentage of Gross Bookings decreased due to improved fixed cost leverage.

Operating Highlights for the First Quarter 2023

Platform

• Monthly Active Platform Consumers (“MAPCs”) reached 130 million: MAPCs grew 13% YoY to 130 million, driven by continued improvement in consumer activity for our Mobility offerings.
• Trips of 2.1 billion: Trips on our platform grew 24% YoY, driven by both Mobility and Delivery growth. Both Mobility and Delivery trips were up QoQ.
• Supporting earners: Drivers and couriers earned an aggregate $13.7 billion (including tips) during the quarter, with earnings up 26% YoY, or 30% on a constant currency basis.
• Membership: Returned to the Super Bowl stage for the third year to launch our latest campaign “One Hit for Uber One.” Uber One continued to experience ongoing adoption and our member base in US & Canada reached an all-time high.
• Uber app redesign: Launched the redesigned Uber app, focused on driving cross-platform usage across Mobility and Delivery, and making our “Go Anywhere, Get Anything” differentiator even easier. Updates include a new home screen, more personalization, and a new way to track the live progress of a ride without opening the app.
• Advertising: Expanded our advertising formats with the addition of Post Checkout ads on Uber Eats, enabling non-Eats merchants to advertise in the app. In addition, launched a self-service platform for cartop ads, giving drivers a way to earn more revenue and spotlight local businesses. Active advertising merchants during the quarter exceeded 345K.
• Cloud migration: Announced long-term partnerships with Google Cloud and Oracle to migrate our infrastructure to the cloud. These strategic partnerships include other areas of collaboration with Google and Oracle.
• Annual Environmental, Social, and Governance Report: Published our annual Environmental, Social, and Governance Report in April, which highlights our perspectives on the ESG issues that matter most to the people who earn on, move on, or invest in our platform, as well as our approach to People and Culture and our broader diversity, equity, and inclusion initiatives.

Mobility

• Uber Reserve expansion: Building on strong traction in other regions for Uber Reserve, expanded product availability to new markets in EMEA. In addition, expanded Reserve feature availability across many cities, including launching Economy products in New York City.
• Taxis: Launched Uber Taxi in new markets including Munich, Germany; Tromsö, Norway; Palermo, Italy; the metropolitan area of São Paulo, Brazil; and more. Uber Taxi is now available in Argentina in all cities where Uber is available, and 100% of New York City taxi supply is now connected to Uber.
• Airport product bundle: Announced a series of new products and features aimed at making airport travel experiences smoother than ever, including new Uber Reserve features, Business Comfort expansion, in-app directions to pickup, and walking ETAs.
• Earner and rider safety: Expanded the opt-in audio recording feature to more than half of the US and all of Canada, giving riders and drivers the option to initiate an audio recording during a trip through the Safety Toolkit in their Uber app.
• Electric Vehicle (“EV”) updates: Expanded Comfort Electric to 14 new markets across the US and Canada, bringing us to 40 North American markets where riders can use Uber to go electric. In addition, signed agreements with bp to provide access to reliable and convenient charging and Tata Motors to bring 25,000 EVs onto Uber’s platform.
• Micromobility partnership: Announced a multi-market commercial partnership with Tembici, a leader in micromobility across Latin America, to make bikes and electric bikes available directly in the Uber app.

Delivery

• Grocery courier experience: Rolled out new features to improve the Shop and Pay experience for grocery couriers across the US, including suggested substitutions for out of stock items, digital payments, and enhanced upfront order clarity.
• New Verticals merchant selection: Expanded our New Verticals selection around the world, as we launched PetSmart as a retail partner in the US; grocery delivery with Coles, Australia’s second-largest grocer; a convenience partnership with Mexican pharmacy Benavides; and alcohol delivery from all serviceable locations of the Liquor Control Board of Ontario (“LCBO”) in Canada.
• Uber Eats at Venues: Announced new functionality that allows sports fans to order concessions directly to their seats at Yankee Stadium, building upon mobile ordering for pickup at venues including Minute Maid Park, Capital One Arena, Angel Stadium and PayPal Park. In addition, signed a new partnership with Tampa International Airport to facilitate mobile ordering before boarding a flight.
• Certified Virtual Restaurant Program: Announced new quality standards and a new Certified Virtual Restaurant Program in the US to make virtual restaurant operations more streamlined and effective for merchants, and to create a more consistent, reliable virtual restaurants experience for consumers who use Uber Eats.
• Courier electrification: Introduced new partnerships to support zero-emission modes of transportation for delivery couriers, including working with Gachaco to provide rapid battery replacement for three-wheelers in Japan; Lumala to improve e-cycle availability for Uber Eats couriers in Sri Lanka; and HumanForest to give Uber Eats couriers full access to its e-bike and e-moped fleet in London.

Freight

• Electric truck pilot partnership with WattEV and CHEP: Announced a strategic partnership with WattEV to deploy electric trucks on select routes in Southern California. CHEP was the first shipper to participate in the pilot, which serves as an important milestone in electric freight transportation and established Uber Freight’s first EV deployment.

Corporate

• Refinanced Term Loans: Refinanced Uber’s 2025 and 2027 term loans, extending the full $2.5 billion to a 2030 maturity.

Recent Developments

• Yandex stake sale: In April 2023, we entered into and closed on a definitive agreement to sell our remaining equity interest in MLU B.V., our joint venture with Yandex, to Yandex for $702.5 million in cash.
• Careem Super App investment: In April 2023, we entered into a series of agreements with Emirates Telecommunication Group Company (“e&”) whereby e& will contribute $400 million into the Careem non-ridesharing businesses (“Careem Super App”) in exchange for a majority equity interest.

Webcast and conference call information

A live audio webcast of our first quarter ended March 31, 2023 earnings release call will be available at https://investor.uber.com/, along with the earnings press release and slide presentation. The call begins on May 2, 2023 at 5:00 AM (PT) / 8:00 AM (ET). This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, is also available on that site.

We also provide announcements regarding our financial performance and other matters, including SEC filings, investor events, press and earnings releases, on our investor relations website (https://investor.uber.com/), and our blogs (https://uber.com/blog) and Twitter accounts (@uber and @dkhos), as a means of disclosing material information and complying with our disclosure obligations under Regulation FD.

About Uber

Uber’s mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 39 billion trips later, we’re building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.

Forward-Looking Statements

This press release contains forward-looking statements regarding our future business expectations which involve risks and uncertainties. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “hope,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors relate to, among others: competition, managing our growth and corporate culture, financial performance, investments in new products or offerings, our ability to attract drivers, consumers and other partners to our platform, our brand and reputation and other legal and regulatory developments, particularly with respect to our relationships with drivers and couriers and the impact of the global economy, including rising inflation and interest rates. For additional information on other potential risks and uncertainties that could cause actual results to differ from the results predicted, please see our Annual Report on Form 10-K for the year ended December 31, 2022 and subsequent quarterly reports and other filings filed with the Securities and Exchange Commission from time to time. All information provided in this release and in the attachments is as of the date of this press release and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.

Non-GAAP Financial Measures

To supplement our financial information, which is prepared and presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we use the following non-GAAP financial measures: Adjusted EBITDA; Free cash flow; Non-GAAP Costs and Operating Expenses as well as, revenue growth rates in constant currency. 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. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results.

We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.

There are a number of limitations related to the use of non-GAAP financial measures. In light of these limitations, we provide specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.

For more information on these non-GAAP financial measures, please see the sections titled “Key Terms for Our Key Metrics and Non-GAAP Financial Measures,” “Definitions of Non-GAAP Measures” and “Reconciliations of Non-GAAP Measures” included at the end of this release.

Contacts

Investors and analysts: investor@uber.com

Media: press@uber.com

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