These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance. Management views Driver incentives and Driver referrals as Driver payments in the aggregate, whether they are classified as Driver incentives, excess Driver incentives, or Driver referrals. Uber's third-quarter earnings showed that its Eats business continues to thrive amid the coronavirus pandemic. Adjusted EBITDA excludes the impact of COVID-19 response initiatives. Got a confidential news tip? The company can also claim a big victory with Prop 22 in California. To support those whose earning opportunities have been depressed as a result of COVID-19, as well as communities hit hard by the pandemic, we have announced and implemented several initiatives, including, in particular, payments for financial assistance to Drivers personally impacted by COVID-19 and Driver reimbursement for their cost of purchasing personal protective equipment. Segment Adjusted EBITDA. The historical results of the former Other Bets segment are included within the All Other caption. 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. Driver or restaurant earnings. Khosrowshahi said Uber Eats now has 560,000 restaurants on its platform, including about 30% of restaurants in the US, and about 15% of those in France. 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. All Rights Reserved. Corporate G&A also includes certain shared costs such as finance, accounting, tax, human resources, information technology and legal costs. Subsequent to the second quarter of 2020, All Other (formerly our Other Bets segment) was no longer deemed an operating or reportable segment. Gross Bookings declined to $14.7 billion, down 10% year-over-year, or 8% on a constant currency basis, with Mobility Gross Bookings declining 50% and Delivery Gross Bookings growing 135% year-over-year, respectively, on a constant currency basis. The cost of personal protective equipment distributed to Drivers, the costs related to free rides and food deliveries to healthcare workers, seniors, and others in need as well as charitable donations are recorded as an expense in our costs and expenses. We have included these non-GAAP financial measures because they are key measures used by our management to evaluate our operating performance. © 2021 CNBC LLC. We define each segment’s Adjusted EBITDA margin as the segment Adjusted EBITDA as a percentage of segment Adjusted Net Revenue. While he declined to guess whether Uber's mobility or delivery business is going to be bigger, long-term, he said that he believes the total addressable market for deliveries, including meals and groceries, was at least as big as the market for rides. All Other (formerly our Other Bets segment) also included Transit, UberWorks and our Incubator group. The following table summarizes total stock-based compensation expense by function (in millions): Key Terms for Our Key Metrics and Non-GAAP Financial Measures. Uber Technologies, Inc. Q3 2020 Earnings. Uber CEO Dara Khosrowshahi on Q3 earnings miss, Prop 22 passing in California and more ... Fri, Nov 6 2020 9:35 AM EST. These amounts largely depend on our business decisions based on market conditions. “Adjusted EBITDA” is a non-GAAP measure as defined by the SEC. 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. Net loss attributable to Uber Technologies, Inc. includes stock-based compensation expense of $401 million and $183 million in Q3 2019 and Q3 2020, respectively. Revenues declined 18% to $3.1 billion versus last year. Listen to "Q2 2020 Uber Technologies Inc Earnings Call". 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. 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. “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. 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. Excluding stock-based compensation expense. If anything, Uber is an advantaged form of transportation versus others.". Adjusted revenues were down 20% at $2.8 billion. We define Take Rate as Adjusted Net Revenue as a percentage of Gross Bookings. Unrestricted cash, cash equivalents and short-term investments were $7.3 billion at the end of the third quarter. 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. During the second quarter of 2020, we completed the divestiture of our JUMP business (the “JUMP Divestiture”), which comprised substantially all of the operations of our Other Bets reportable segment. In addition, it provides a useful measure for period-to-period comparisons of our business, as it removes the effect of certain non-cash expenses and certain variable charges. (Constant Currency). Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. 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/). 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 calculate constant currency by translating our current period financial results using the corresponding prior period’s monthly exchange rates for our transacted currencies other than the U.S. dollar. Cumulative payments to Drivers could exceed cumulative revenue from Drivers in transactions where the Drivers are our customers, as a result of Driver incentives or when the amount paid to Drivers for a Trip exceeds the fare charged to the consumer. The payments for financial assistance to Drivers personally impacted by COVID-19 and Driver reimbursement for their cost of purchasing personal protective equipment are recorded as a reduction to revenue. Uber Technologies Inc. reported third quarter 2020 earnings results today. You can sign up for additional alert options at any time. Adjusted EBITDA has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with GAAP. 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, 2019 and subsequent Form 10-Qs and Form 8-Ks filed with the Securities and Exchange Commission. Monthly Active Platform Consumers (“MAPCs”). Net loss attributable to Uber Technologies, Inc. was $1.1 billion in Q3 2020, which includes $183 million in stock-based compensation expense. “Freight Adjusted Net Revenue,” “ATG and Other Technology Programs Adjusted Net Revenue,” and “All Other Adjusted Net Revenue” (prior to the second quarter of 2020 our Other Bets segment) are equal to GAAP net revenue in all periods presented. Adjusted Net Revenue and segment Adjusted Net Revenue excludes the impact of COVID-19 response initiatives. This press release contains forward-looking statements regarding our future business expectations which involve risks and uncertainties. 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. Benzinga does not provide investment advice. To opt in to receive investor email alerts, please enter your email address in the field below and select at least one alert option. Add to Apple Calendar; Add to Google Calendar; Add to Microsoft Outlook; ... you are giving consent to Uber Technologies Inc. to send you the requested investor email alert updates. 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. Uber shares had skyrocketed on Wednesday and continued climbing Thursday ahead of earnings, after the company's proposed ballot measure, Proposition 22, won voters' support in California elections. 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. Uber misses on revenue, $3.13B vs. $3.20B estimated, political fight to preserve their business model. Explore the Driver app resources that put you in charge and help you make the most of your time. 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. Shares of Uber rallied mid-week after California voters approved Proposition 22, which allows ride-hail and delivery businesses to classify drivers as independent contractors not employees. Email Address * Uber ( UBER) r eported its Q3 2020 earnings after the closing bell on Thursday, beating analysts’ expectations on solid growth from its Eats business. Earnings Uber Technologies (NYSE:UBER) Earnings Information. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. November 5, 2020 01:30 PM PT. Uber Technologies, Inc. (NYSE: UBER) today announced financial results for the quarter ended September 30, 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. We define Gross Bookings as the total dollar value, including any applicable taxes, tolls, and fees, of Mobility and New Mobility rides, Delivery meal or grocery deliveries, and amounts paid by Freight shippers, in each case without any adjustment for consumer discounts and refunds, Driver and restaurant earnings, and Driver incentives. Driver incentives. These COVID-19 response initiatives are recorded as a reduction to revenue. COVID-19 response initiatives. Our allocation methodology is periodically evaluated and may change. On a conference call to discuss results, CEO Dara Khosrowshahi said while the last 8 months had been tough, there were early signs that the company's core mobility business would fully recover. * Required. Two days after the 2020 election results, the company reported quarterly earnings. Net loss attributable to Uber Technologies, Inc. was $1.2 billion in Q3 2019, which includes $401 million in stock-based compensation expense. Q3: 2020-11-05 Earnings Summary. Driver or restaurant earnings refer to the net portion of the fare or the net portion of the order value that a Driver or a restaurant retains, respectively. ET. Driver referrals refer to payments that we make to existing Drivers to refer new Drivers onto our platform. 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. Net Loss, Adjusted EBITDA and Segment Adjusted EBITDA. Net loss attributable to Uber Technologies, Inc. was $1.1 billion, which includes $183 million in stock-based compensation expense. Adjusted revenues were … We define MAPCs as the number of unique consumers who completed a Mobility or New Mobility ride or received a Delivery meal or grocery order on our platform at least once in a given month, averaged over each month in the quarter. Excess Driver incentives. Gross Bookings do not include tips earned by Drivers. 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. Bookings from deliveries outpaced bookings for rides and mobility again for Uber, as the Covid-19 pandemic continued to impact travel and commuting during the third quarter. November 5, 2020 Uber Technologies Inc. (NYSE: UBER) reported third quarter 2020 earnings results today. To help our board, management and investors assess the impact of these COVID-19 response initiatives on our results of operations, we are excluding the impact of these COVID-19 response initiatives from ANR. Revenue declined 18% year-over-year, or 17% on a constant currency basis. 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. Coupa announced its financial earnings from the third quarter, with revenue growing to a record $133 million, according to a press release late Monday.. Total revenue grew 31% year-over-year (YoY) despite the continued disruption from the COVID-19 pandemic. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? He said Uber had improved its position in 11 of the top 15 markets in the United States during the third quarter including New York City, Chicago and Atlanta. Mobility Revenue declined 53% year-over-year and Delivery Revenue grew 125% year-over-year. Earnings Uber Touts Delivery Business In Q3 Earnings Call. In addition to revenue, net income (loss), loss from operations, and other results under GAAP, we use Adjusted Net Revenue; Mobility Adjusted Net Revenue; Delivery Adjusted Net Revenue; Adjusted EBITDA; Adjusted EBITDA margin as a percentage of ANR as well as revenue and ANR growth rates in constant currency, which are described below, to evaluate our business. We include the impact of these amounts in Adjusted Net Revenue as it is useful to evaluate how increasing or decreasing incentives would impact our top line performance, and the overall net financial activity between us and our customers, which ultimately impacts our Take Rate. Driver referrals. Segment Adjusted EBITDA margin demonstrates the margin that we generate after direct expenses. Driver referrals are recorded in sales and marketing expenses, as they represent the receipt of a distinct service of customer acquisition for which there is evidence of fair value. Adjusted Net Revenue (“ANR”) declined 20% year-over-year, Mobility ANR declined 52% year-over-year and Delivery ANR grew 190% year-over-year. 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. 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 initiatives 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. 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