Uber Announces Results for Second Quarter 2023

Gross Bookings grew 16% year-over-year and 18% year-over-year on a constant currency basis

Net income of $394 million; Income from operations of $326 million; Adjusted EBITDA margin at all-time high

Operating cash flow of $1.2 billion; Record quarterly free cash flow of $1.1 billion

SAN FRANCISCO–(BUSINESS WIRE)–Uber Technologies, Inc. (NYSE: UBER) today announced financial results for the quarter ended June 30, 2023.

Financial Highlights for Second Quarter 2023

• Gross Bookings grew 16% year-over-year (“YoY”) to $33.6 billion, or 18% on a constant currency basis, with Mobility Gross Bookings of $16.7 billion (+25% YoY or +28% YoY constant currency) and Delivery Gross Bookings of $15.6 billion (+12% YoY or +14% YoY constant currency). Trips during the quarter grew 22% YoY to 2.3 billion, or approximately 25 million trips per day on average.
• Revenue grew 14% YoY to $9.2 billion, or 17% on a constant currency basis.
• Income from operations was $326 million, up $1.0 billion YoY and $588 million quarter-over-quarter (“QoQ”).
• Net income attributable to Uber Technologies, Inc. was $394 million, which includes a $386 million benefit (pre-tax) primarily due to net unrealized gains related to the revaluation of Uber’s equity investments.
• Adjusted EBITDA of $916 million, up $552 million YoY. Adjusted EBITDA margin as a percentage of Gross Bookings was 2.7%, up from 1.3% in Q2 2022. Incremental margin as a percentage of Gross Bookings was 12.2% YoY.
• Net cash provided by operating activities was $1.2 billion and free cash flow, defined as net cash flows from operating activities less capital expenditures, was $1.1 billion.
• Unrestricted cash, cash equivalents, and short-term investments were $5.5 billion at the end of the second quarter.

“Robust demand, new growth initiatives, and continued cost discipline resulted in an excellent quarter, with trips up 22% and a GAAP operating profit, for the first time in Uber’s history,” said Dara Khosrowshahi, CEO. “These results also translated into strong driver and courier engagement, with 6 million drivers and couriers earning a record $15.1 billion during the quarter.”

“The unique power of the Uber platform and the team’s relentless focus on profitable growth was on full display in Q2, with record profitability and over $1 billion of quarterly free cash flow,” said Nelson Chai, CFO. “I’m incredibly proud of the progress we’ve made, and Uber is well positioned to drive tremendous value for shareholders in the coming years.”

Outlook for Q3 2023

For Q3 2023, we anticipate:

• Gross Bookings of $34.0 billion to $35.0 billion
• Adjusted EBITDA of $975 million to $1.025 billion

Financial Highlights for the Second Quarter 2023 (continued)

Mobility

• Gross Bookings of $16.7 billion: Mobility Gross Bookings grew 28% YoY on a constant currency basis. On a sequential basis, Mobility Gross Bookings grew 12% QoQ.
• Revenue of $4.9 billion: Mobility Revenue grew 38% YoY and 13% QoQ. The YoY increase was primarily attributable to an increase in Mobility Gross Bookings due to an increase in Trip volumes. Mobility Take Rate of 29.3% increased 270 bps YoY and increased 40 bps QoQ. The UK business model change impacting revenue represented an 810 bps net benefit to Take Rate in the quarter.
• Adjusted EBITDA of $1.2 billion: Mobility Adjusted EBITDA increased $399 million YoY and $110 million QoQ. Mobility Adjusted EBITDA margin was 7.0% of Gross Bookings compared to 5.8% in Q2 2022 and 7.1% in Q1 2023. Mobility Adjusted EBITDA margin improvement YoY was primarily driven by better cost leverage from higher volume.

Delivery

• Gross Bookings of $15.6 billion: Delivery Gross Bookings grew 14% YoY on a constant currency basis. On a sequential basis, Delivery Gross Bookings grew 4% QoQ.
• Revenue of $3.1 billion: Delivery Revenue grew 14% YoY and declined 1% QoQ. Take Rate of 19.6% grew 20 bps YoY and decreased 100 bps QoQ. Business model changes in some countries that classify certain payments and incentives as cost of revenue and sales and marketing costs as contra revenue benefited Delivery Take Rate by a net 330 bps in the quarter (compared to 510 bps benefit in Q2 2022 and 430 bps benefit in Q1 2023).
• Adjusted EBITDA of $329 million: Delivery Adjusted EBITDA grew $230 million YoY and $41 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 2.1%, compared to 0.7% in Q2 2022 and 1.9% in Q1 2023.

Freight

• Revenue of $1.3 billion: Freight Revenue declined 30% 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 $14 million: Freight Adjusted EBITDA declined $19 million YoY and increased $9 million QoQ. Freight Adjusted EBITDA margin as a percentage of Gross Bookings declined 140 bps YoY and increased 50 bps QoQ to (1.1)%.

Corporate

• Corporate G&A and Platform R&D: Corporate G&A and Platform R&D expenses of $569 million, compared to $511 million in Q2 2022, and $564 million in Q1 2023. Corporate G&A and Platform R&D as a percentage of Gross Bookings decreased 10 bps YoY and QoQ due to cost control and improved fixed cost leverage.

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 $5.5 billion, representing 16.4% of Gross Bookings, compared to 17.7% and 16.7% in Q2 2022 and Q1 2023, respectively. On a YoY basis, non-GAAP cost of revenue as a percentage of Gross Bookings decreased due to improved cost leverage with Gross Bookings growth outpacing cost of revenue growth.
• 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 $664 million. Non-GAAP operations and support was $616 million, representing 1.8% of Gross Bookings, compared to 2.0% and 1.9% in Q2 2022 and Q1 2023, 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 $1.2 billion. Non-GAAP sales and marketing was $1.2 billion, representing 3.5% of Gross Bookings, compared to 4.1% and 3.9% in Q2 2022 and Q1 2023, respectively. On a YoY basis, non-GAAP sales and marketing as a percentage of Gross Bookings decreased due to a business model change that classified certain sales and marketing costs as contra revenue. Additionally, Gross Bookings mix shifted towards Mobility, which carry lower associated sales and marketing costs.
  • Research and development: GAAP research and development was $808 million. Non-GAAP research and development was $488 million, representing 1.5% of Gross Bookings, compared to 1.5% in both Q2 2022 and Q1 2023. 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 $491 million. Non-GAAP general and administrative was $503 million, representing 1.5% of Gross Bookings, compared to 1.6% in both Q2 2022 and Q1 2023. 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 Second Quarter 2023

Platform

• Monthly Active Platform Consumers (“MAPCs”) reached 137 million: MAPCs grew 12% YoY and 5% QoQ to 137 million, driven by continued improvement in consumer activity for our Mobility offerings.
• Trips of 2.3 billion: Trips on our platform grew 22% YoY and 7% QoQ, driven by both Mobility and Delivery growth. Both Mobility and Delivery trips were up QoQ. Monthly trips per MAPC grew 9% YoY to 5.6.
• Supporting earners: Drivers and couriers earned an aggregate $15.1 billion (including tips) during the quarter, with earnings up 17% YoY, or 19% on a constant currency basis.
• Membership: Launched Uber One, our single cross-platform membership program, in Costa Rica, South Africa and Sri Lanka. Uber One is now available across 15 countries.
• Advertising: Launched video ads on Uber, Uber Eats, Drizly and in-car tablets. In addition, expanded our advertising formats with the addition of Sponsored Items opportunities for CPG brands on Uber Eats. Further, announced a data collaboration with Omnicom Media Group in the US, strengthening the unique ad buying offering of mobility and retail media inventory on Uber. Active advertising merchants during the quarter exceeded 400K. Our revenue run-rate from Advertising exceeded $650 million.
• Waymo partnership: Announced a multi-year strategic partnership to make the Waymo Driver available on the Uber platform, starting in Phoenix, AZ. The integration will launch publicly later this year with a set number of Waymo vehicles and will include local deliveries and ride-hailing trips.
• Family profiles with teen accounts: Updated Family profiles – across mobility and delivery apps – and launched teen accounts, enabling parents to invite teens ages 13-17 years old to create a specialized account through their family profile that can be used to request rides and order food. Teen accounts have built-in safety features, including PIN verification, live trip tracking, and access to Uber’s Safety Line, to help keep teens safe while on the go.

Mobility

• Uber Reserve features: Launched new Reserve features to create an even more seamless experience for riders and earners, including new functionality for riders to reserve a car seat or pet friendly ride, improved reliability, and new earner features to make it easier to find Reserve trips in app.
• Hailables: Launched Uber Taxi in several new cities across Taiwan, Italy, Turkey and Ireland; and expanded Uber Moto, our bike taxi product, to additional cities in Argentina.
• UberX Share expansion: Launched UberX Share in 18 additional US markets, bringing the offering to over 50 markets globally and making it the most widely-available shared rides product in the world.
• Ford flexible lease pilot: Expanded our pilot program with Ford to offer EV flexible leases on Ford Mustang Mach-E models to drivers on the Uber platform in San Diego, San Francisco and Los Angeles. The pilot is the first of its kind between an automaker and rideshare network, furthering both companies’ electrification and emissions goals.
• UK Uber Travel expansion: Announced a new UK feature which allows UK users to book flights directly in the Uber app. Flights on Uber join existing UK transport options including Uber Rides, Uber Boat, international and intercity trains and buses.
• Uber Carshare North America expansion: Announced that Uber Carshare will expand to North America in the coming months, beginning first with launches in Boston and Toronto.

Delivery

• Domino’s first US third party delivery app partnership: In July, entered into a new global agreement with Domino’s, which allows US customers to order Domino’s products through the Uber Eats and Postmates apps with delivery by the trained delivery experts of Domino’s and its franchisees. This agreement will also create the opportunity to unify Domino’s international markets under a single master agreement that leverages the global scale of both brands.
• Group Grocery orders: Launched our Group Grocery product globally, making it easier than ever to invite participants to add items, set deadlines of when to order by, and automatically split bills.
• Delivering a greener future: Expanded our sustainability commitment to include Delivery, with goals to reduce unnecessary packaging waste and delivery trip emissions globally to zero by 2030 and 2040, respectively. Launched and expanded partnerships increasing access to sustainable packaging and zero-emission vehicles around the world.
• Autonomous delivery update: Unveiled our commercial agreement to allow for Serve to deploy up to 2,000 AI-powered sidewalk delivery robots on Uber Eats across multiple US markets. In addition, expanded our partnership with Cartken to include deliveries via automated robots in Fairfax, Virginia.
• Hands-free order tracking with Amazon Alexa: Announced that consumers can now experience hands-free order tracking via Amazon’s voice assistant, Alexa, to track the status of Uber Eats restaurant orders in the US.

Freight

• Increasing engagement with existing and new shippers: Secured significant international service expansions from existing Transportation Management customers seeking better global connectivity and visibility, including Eaton and Chicken of the Sea. Additionally, Uber Freight’s brokerage services welcomed several new customers, including Kimberly-Clark and a top five global food service company.

Corporate

• Upsized Revolving Credit Facility: On July 28, 2023, we entered into a Joinder Agreement to our Revolving Credit Facility to add an incremental revolving loan lender and increase the available commitments under the Revolving Credit Facility by an aggregate principal amount of $250 million. The agreement brings the total revolver capacity to approximately $2.5 billion. There were no changes to the pricing or maturity of the Revolving Credit Facility.

Recent Developments

• CFO Transition: The Company announced that Nelson Chai, Chief Financial Officer, will leave the Company on January 5, 2024. A search for his replacement is underway.
• UK VAT assessment: In June 2023, the UK Tax Authorities (“HMRC”) disputed the amount and manner in which we were applying VAT to our UK Mobility business since our business model change in March 2022, which resulted in an assessment of £386 million (approximately $487 million). In the UK, in order to dispute the HMRC VAT assessment in tax court, taxpayers are required to pay the assessment up-front to access the court system and, if they are successful in their dispute, the payment is returned to the taxpayer. In July 2023 we paid the assessment in order to proceed with our dispute in the UK tax court, the payment of which will impact our Q3 2023 operating cash flows and have no impact on our income statement.

Webcast and conference call information

A live audio webcast of our second quarter ended June 30, 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 August 1, 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 42 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.

Contacts

Investors and analysts: investor@uber.com
Media: press@uber.com

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