Uber turned into a magical money burning machine

[tacobell fan]

Uber Reports Second Quarter 2019 Results

August 08, 2019

 

SAN FRANCISCO--(BUSINESS WIRE)-- Uber Technologies, Inc. (NYSE: UBER) today announced financial results for the quarter ended June 30, 2019.

“Our platform strategy continues to deliver strong results, with Trips up 35% and Gross Bookings up 37% in constant currency, compared to the second quarter of last year,” said Dara Khosrowshahi, CEO. “In July, the Uber platform reached over 100 million Monthly Active Platform Consumers for the first time, as we become a more and more integral part of everyday life in cities around the world.”

Financial and Operational Highlights

		Three Months Ended June 30,
(in millions, except per share amounts, and percentages)		2018				2019				% Change
Gross Bookings		$	12,012			$	15,756			31	%
Monthly Active Platform Consumers (“MAPCs”)		76				99				30	%
Trips		1,242				1,677				35	%
Revenue		$	2,768			$	3,166			14	%
Loss from operations (1), (2)		$	(739	)		$	(5,485	)		**
Net loss attributable to Uber Technologies, Inc. (1), (2)		$	(878	)		$	(5,236	)		**
Diluted net loss per common share		$	(2.01	)		$	(4.72	)		(135	)%
Adjusted Net Revenue (“ANR”) (1), (3)		$	2,574			$	2,873			12	%
YoY % Growth at constant currency & ex-Driver appreciation award (3)										26	%
Core Platform Contribution Margin (as a % of ANR)		14.7		%		8.2		%		**
Adjusted EBITDA (3)		$	(292	)		$	(656	)		(125	)%

(1) Q2 2019 includes a $298 million driver appreciation award made in connection with our initial public offering.

(2) Q2 2019 includes $3.9 billion of stock-based compensation expenses, primarily due to RSU expense recognition in connection with our initial public offering.

(3) “Adjusted Net Revenue,” “YoY % Growth at constant currency & ex-Driver appreciation award” and “Adjusted EBITDA” are non-GAAP measures as defined by the Securities and Exchange Commission (the “SEC”). 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.

** Percentage not meaningful.

“While we will continue to invest aggressively in growth, we also want it to be healthy growth, and this quarter we made good progress in that direction,” said Nelson Chai, CFO. “In Q2, Adjusted Net Revenue grew 26% year-over-year in constant currency and excluding our Driver Appreciation Award, which is an acceleration from Q1. Adjusted EBITDA also improved meaningfully from Q1, driven by a $337 million sequential improvement in Core Platform Contribution.”

Other Highlights

• 37% year-over-year growth of Gross Bookings in Q2 2019 at constant currency: Foreign currency negatively impacted reported gross bookings growth by 6% in Q2 2019. Additional data on these trends can be found in the supplementary slide presentation available on our website.
• Strong adoption of Uber Rewards: Available nationwide in the United States as of May 2019. Enrolled consumers earn points and rewards for Ridesharing and Eats and are twice as likely as unenrolled consumers to be active on both Rides and Eats.
• Expansion of Driver rewards and benefits: More than 50% of drivers in the United States are enrolled in Uber Pro, our driver rewards program. Outside the US, Uber Pro officially launched in Mexico in early July and is now available to more than half of drivers in Mexico following a successful pilot. In parallel, we announced in Mexico our first driver debit card outside the US, in partnership with BBVA. Uber Pro was also launched on July 1 in three cities in Brazil.
• Improving consumer Ridesharing selection: In July 2019, we launched Uber Comfort, which is an affordable upgrade to our UberX product offering. Uber Comfort offers higher-rated drivers, newer and larger vehicles, and rider preferences, similar to premium economy on airlines. Uber Comfort is live in 44 cities in the United States and Canada and in eight cities in Australia as of early July. We continue our efforts to enhance the high-end Uber Black experience with enhancements including quiet mode, temperature control, and luggage help.
• Progress in two of Ridesharing’s priority markets: Germany was one of our fastest-growing Ridesharing countries during Q2 2019, as we are now operating in five large cities as of the end of the quarter. Meanwhile, Buenos Aires, Argentina has become the fifth largest city in the world based on trips, as its citizens take advantage of Ridesharing’s convenience and the local income-earning opportunities provided by becoming a driver.
• Uber Eats strengthens marketplace liquidity: In Q2 2019, Uber Eats Monthly Active Platform Consumers (MAPCs) grew over 140% year-over-year. Over 40% of new Eats consumers had never used Uber’s platform before. Uber Eats restaurant selection continues to improve, reaching 320,000 restaurant partners at the end of Q2 2019. New delivery fees (service and small-basket fees) resulted in improved Adjusted Net Revenue take rates quarter-over-quarter.
• Uber Freight continues to add new customers: Uber Freight added new shipping customers across the enterprise, middle market, and small- and medium-sized business segments. Our platform for shippers targets the underserved long tail of small shippers with an automated self-serve tool that helped drive 10X year-over-year revenue on the platform.
• New Mobility (NeMo) launches new JUMP cities and continues Transit development:JUMP launched in 11 new cities with a focus on Europe. Transit, our in-app integration with public transportation journey planning, was launched in London and Boston and expanded to include in-app ticketing in Denver.
• Advanced Technologies Group (ATG) makes technological progress: We unveiled our first production car capable of self-driving with Volvo’s newest XC90 SUV, which is designed with a chassis ready to integrate ATG’s self-driving system direct from the factory.
• Uber Elevate hosted successful Summit: At the third annual Elevate Summit, 1,200 participants including industry leaders, government officials, and ecosystem partners convened in Washington, D.C. to collaborate and showcase products on the future of urban air mobility. We also announced our first international pilot city for Uber Air will be Melbourne, Australia, in addition to Dallas and Los Angeles in the US.
• Balance sheet strengthened: In May 2019, we received net proceeds, after deducting underwriting discounts and commissions, of approximately $8.0 billion in our initial public offering and $0.5 billion from the PayPal investment, which drove an increase of unrestricted cash and cash equivalents to $11.7 billion from Q1 2019’s $5.7 billion. Q2 2019’s cash and cash equivalents, including restricted cash, increased to $13.7 billion from Q1 2019’s $7.7 billion. We also received an aggregate of $1.0 billion upon the closing of the investment by Toyota, DENSO, and SoftBank in Uber ATG in July 2019.