Uber Takes $509M Loss - Tops Forecasts
August 5, 2021
Uber reported a Q2 net income of $1.1
billion, but their operating loss was still $1.19 billion. The firm had
unrealized gains of $1.4 billion in Didi and $471 million in Aurora.
Consequently, the ride hailer reported earnings per share of 58 cents
against an anticipated loss of 51 cents per share. As to revenue, Uber
took in $3.93 billion with only $3.75 billion expected.
“In Q2 we invested in recovery by investing in drivers and we made
strong progress, with monthly active drivers and couriers in the US
increasing by nearly 420,000 from February to July,” said Dara
Khosrowshahi, CEO. “Our platform is getting stronger each quarter, with
consumers who engage with both Mobility and Delivery now generating
nearly half of our total company Gross Bookings.”
“We successfully made large investments in Q2 to improve marketplace
balance, and we are now well positioned to reach Adjusted EBITDA
profitability by Q4,” said Nelson Chai, CFO. “As we make progress
towards that important milestone, we expect our Adjusted EBITDA loss in
Q3 to improve to less than $100 million in addition to record Gross
Bookings between $22 and $24 billion.”
Highlights for Second Quarter 2021
Bookings grew 114% year-over-year (“YoY”) to $21.9
billion, or 104% on a constant currency basis, with
Mobility Gross Bookings of $8.6 billion (+184% YoY) and
Delivery Gross Bookings of $12.9 billion (+85% YoY).
grew 35% QoQ and 105% YoY, or 95% on a constant currency
basis. Mobility Revenue grew 90% QoQ (and 11% QoQ
excluding the UK accrual in Q1) and 106% YoY. Delivery
Revenue grew 13% QoQ and 122% YoY.
income attributable to Uber Technologies, Inc. was $1.1
billion, including $272 million in stock-based
compensation expense. Net income benefited from
unrealized gains of $1.4 billion and $471 million due to
the revaluation of Uber’s equity investments in Didi and
EBITDA of $(509) million, down $150 million QoQ but up
$328 million YoY, representing a (2.3)% margin as a
percentage of Gross Bookings and a (13.0)% margin as a
percentage of revenue.
Adjusted EBITDA of $179 million, down $119 million QoQ
but up $129 million YoY, representing a 2.1% margin as a
percentage of Mobility Gross Bookings and a 11.1% margin
as a percentage of Mobility Revenue. Mobility Take Rate
and Adjusted EBITDA were impacted by elevated
investments in reviving driver availability,
particularly in the US.
Adjusted EBITDA of $(161) million improved by $39
million QoQ and by $71 million YoY, representing a
(1.2)% margin as a percentage of Delivery Gross Bookings
and a (8.2)% margin as a percentage of Delivery Revenue.
Unrestricted cash, cash equivalents and short-term
investments were $5.0 billion at the end of the second
Highlights for the Second Quarter 2021 (continued)
Bookings of $12.9 billion: Gross Bookings grew 4%
QoQ and 75% YoY on a constant currency basis, with
triple digit YoY growth in EMEA and strong double digit
YoY growth in U.S. & Canada, LatAm and APAC.
Revenue of $1.96 billion: Revenue grew 13% QoQ and
122% YoY. Take Rate of 15.2% grew 120 bps QoQ and 250
bps YoY. The YoY expansion was driven by higher volumes,
higher basket sizes, and improved network efficiencies.
Additionally, we realized a 250 bps YoY benefit from
business-model changes in some countries that reclassify
certain payments and incentives as Cost of Revenue.
Adjusted EBITDA of $(161) million: Adjusted EBITDA
improved $39 million QoQ and $71 million YoY, driven by
improved network efficiencies, reduced incentive spend
per trip, and cost leverage. Delivery Adjusted EBITDA
margin was (1.2)% as a percentage of Gross Bookings,
compared to (1.6)% in Q1 2021 and (3.3)% in Q2 2020.
Bookings of $8.6 billion: Mobility Gross Bookings
grew 28% QoQ and 174% YoY on a constant currency basis.
On a QoQ basis, Mobility Gross Bookings grew 54% in
EMEA, 37% in the U.S. & Canada, and 10% in LatAm, while
declining 9% QoQ in APAC due to the severe COVID-19
outbreak in India.
Revenue of $1.62 billion: Mobility Revenue grew 11%
QoQ, excluding the UK accrual in Q1, and grew 98% YoY on
a constant currency basis.
Rate of 18.7%: Take rate declined 280 bps QoQ,
excluding the UK accrual, and declined 710 bps YoY. Take
Rate was impacted by elevated investments in reviving
driver availability, particularly in the US.
Adjusted EBITDA of $179 million: Adjusted EBITDA
decreased $119 million QoQ and Adjusted EBITDA margin
reached 2.1% of Gross Bookings, compared to 4.4% in Q1
2021 and 1.6% in Q2 2020. EBITDA was impacted by
elevated investments in reviving driver availability.
All Other, and Corporate
Freight delivered accelerating growth and improving
EBITDA margins: Freight revenue accelerated to 65%
YoY, reaching a $1.4 billion annualized run-rate, with
strong customer adoption of our technology-first
offering driven by Freight’s leading service standards
and real-time demand channels. Freight improved Adjusted
EBITDA margins 1,130 bps YoY to (11.8)%.
Corporate G&A and Platform R&D expenses of $(486)
million: This compared to $(417) million in Q1 2021,
and $(492) million in Q2 2020. On a QoQ basis, expenses
increased due to higher headcount and external legal
Non-GAAP Costs and Operating Expenses
of revenue excluding D&A: GAAP cost of revenue
increased $389 million QoQ and $1.18 billion YoY.
Non-GAAP cost of revenue grew $394 million QoQ and $1.21
billion YoY on an absolute dollar basis, driven by an
increase in Courier payments and incentives in certain
markets; an increase in Mobility driven by volume
increases primarily resulting in higher insurance costs;
and an increase in Freight carrier payments.
and Non-GAAP operating expenses (The non-GAAP
operating expenses measure excludes pro forma
adjustments, such as stock-based compensation and
Operations and support: GAAP operations and
support increased $9 million QoQ and declined $150
million YoY. Non-GAAP operations and support
declined by $2 million QoQ but grew $29 million YoY,
with the YoY increase attributable to higher driver
background check costs and higher headcount costs
from the Postmates and Cornershop acquisitions,
offset by lower Mobility employee headcount costs
from cost reduction actions in 2020.
Sales and marketing: GAAP sales and marketing
grew $153 million QoQ and $520 million YoY. Non-GAAP
sales and marketing grew $161 million QoQ and $543
million YoY as a result of higher marketing and
promotion spend in our Mobility and Delivery
Research and development: GAAP research and
development declined $27 million QoQ and $96 million
YoY. Non-GAAP research and development grew $7
million QoQ but declined $87 million YoY, with the
YoY decline driven by lower employee headcount
costs, which was primarily driven by the sales of
JUMP and our ATG business in the second quarter of
2020 and the first quarter of 2021, respectively.
General and administrative: GAAP general and
administrative grew $152 million QoQ and $51 million
YoY. GAAP general and administrative grew YoY
primarily attributed to a net increase in legal,
tax, and regulatory reserve changes and settlements.
Non-GAAP general and administrative grew $87 million
QoQ and grew $40 million YoY, primarily attributable
to an increase in indirect taxes.
Highlights for the Second Quarter 2021
of 1.51 billion: Trips on our platform grew 4% QoQ
and were 105% above Q2 2020 levels, with QoQ growth in
both Mobility and Delivery trips.
Monthly Active Platform Consumers (“MAPC”) reached 101
million: MAPCs grew 3% QoQ and grew 84% YoY to 101
million, with Delivery MAPCs growing roughly 48% YoY. On
average, each MAPC spent approximately $72 per month, up
$10 YoY and $6 QoQ, and used our platform approximately
five times per month during the quarter ended June 30,
Active drivers and couriers: Uber continues to be a
platform of choice for people to earn flexibly. Drivers
and couriers earned an aggregate $7.9 billion during the
quarter, with earnings up 144% YoY, outpacing Uber’s
Gross Bookings growth of 114% YoY.
Membership: Launched Uber Pass in Australia, New
Zealand, and France during the quarter. Pass members now
contribute roughly 25% of global Delivery Gross Bookings
and 30% of US Delivery Gross Bookings.
Reopening impact: Delivery continued to demonstrate
strong consumer metrics even as COVID-19 restrictions
eased around the world. Delivery MAPCs, basket size and
order frequency were stable QoQ, and grew nearly 50%
YoY, 14% YoY and 10% YoY, respectively.
Merchants: Active merchants grew over 60% YoY to
exceed 750K in Q2, with several large partnerships
announced across Eats and New Verticals. We witnessed
strong adoption of our pickup option for merchants, with
over 60% of active US restaurants on our platform now
offering pickup to consumers. We expect this to be an
increasingly valuable offering as the world reopens and
consumers engage with restaurants across delivery,
pickup and dine-in.
rollout continues: Ads are now available in most
major Uber Delivery markets globally, and we migrated to
a proprietary Ads platform that further improves the
margin profile of the offering. Active advertising
merchants grew to 84K.
Postmates integration: Postmates apps are now
largely integrated, with nearly 5 million consumers,
160K couriers and over 25K merchants migrating from the
respective Postmates to Uber Eats apps.
Verticals: New Verticals, which includes Uber’s
non-restaurant delivery offerings (grocery, convenience,
alcohol and others), gained further traction in
expansion markets like the US and UK, with US Gross
Bookings in June nearly tripling from December 2020
levels, while the UK and France more than doubled over
the same period. New Verticals MAPCs reached 3 million
during the second quarter driven by strength in our
international business. Significant progress in rolling
out New Verticals offerings in the US, including
partnerships signed with Albertsons, BevMo, and
Walgreens, as well as the Gopuff partnership now rolling
out across the country.
Albertsons partnership: Uber and Albertsons
announced a strategic partnership to offer on-demand
and scheduled grocery delivery to customers in major
US markets where Albertsons operates by the end of
2021. This marks Uber’s first national grocery
partnership in the US, more than doubling the
availability of our grocery offering to 400+ cities
and towns, including San Francisco and Phoenix, with
a full national presence with the anticipated
addition of 1,200 stores expected by year’s end.
Walgreens partnership: Further expanding on our
partnership with Walgreens, consumers can now order
retail products on Uber Eats from more than 7,800
Walgreens stores for same-day delivery across the
Cornershop acquisition: Uber announced an
agreement with the minority shareholders of
Cornershop to acquire their interests in Cornershop
in an all-stock transaction after which Cornershop
will become a wholly-owned subsidiary of the
FTD partnership: Launched the first-ever
delivery app partnership for nationwide flower
delivery, making same-day delivery from FTD’s
network of florists across the US available in the
Uber Eats app.
Supporting local restaurants: Uber was proud to
continue supporting small restaurants through a
partnership with the Local Initiative Support
Corporation (LISC), in which we distributed $4.5 million
to 900 local restaurants across the country. Only small-
and medium-sized restaurants with fewer than five
locations were eligible for the microgrants. More than
87% of the recipients of the microgrants were businesses
owned by women or people of color, who have been among
those hardest hit by the pandemic.
Airport recovery: Trips to and from airports
represented 10% of Mobility Gross Bookings in Q2 2021,
growing 67% QoQ and 617% YoY, outpacing the overall
segment’s recovery as consumer travel trends improved.
Reserve expansion: Expanded reservation
functionality to UberX and other economy tiers in April,
after proving product market fit and reliability on the
Uber Black category over the past few quarters.
Rent national expansion: Uber Rent is now available
across the US, allowing consumers to easily book a
rental car from Avis, Budget, Hertz and dozens of other
providers, directly from the Uber app.
relaunch: The first relaunch of a reimagined Pool
started in Australia in Perth and Sydney. The product is
designed to be structurally margin positive, and we are
seeing encouraging adoption. In addition, we also
launched Pool Chance, a new product where the rider only
receives a discount if they are pooled with another
rider on the trip, in Adelaide, Brisbane, Gold Coast and
House partnership: In May, we announced alongside
the White House that we would offer free rides to
vaccination sites across the US. As part of this we
provided over 200K free rides (up to $25) to and from
vaccination providers between May 24-July 4.
Walgreens vaccine integration: Uber and Walgreens
teamed up to develop a simple in-app vaccine and
ride-booking feature where an Uber user could book a
vaccine appointment in the Uber app and their ride to
get to the appointment all in a few taps.
driver vaccination effort: Driven by our vaccination
initiative, more than 100,000 drivers on the Uber
platform have now received at least one COVID vaccine
shot to help India get moving again.
agreement: Uber formally recognized the GMB trade
union, which will now be able to represent up to 70,000
Uber drivers across the UK. Uber and GMB will join
forces to raise the standard of flexible work across the
industry, as Uber continues to be the only major
operator offering protections to drivers.
Continued Electric Vehicle (EV) progress in London:
We announced a partnership with UK tech firm Arrival to
design a purpose-built, fully-electric vehicle for the
ride-hailing industry and the next phase of our Clean
Air Plan, which has already raised more than £135m to
support drivers with the cost of switching to EVs.
partnerships to support drivers’ fair transition to EVs:
We entered several EV partnerships, including with
Kia to give drivers discounts on up to 30,000 EVs across
key European markets; with Crédit Agricole to provide
drivers with financing solutions to buy EVs; with Total
Energies to accelerate the transition of Uber’s drivers
towards electric mobility, by providing support for
vehicle conversion and easier access to charge points;
and with the City of Hamburg to help taxi partners
access financial incentives for switching to electric
on Uber: Uber’s micromobility partnership with Lime
is witnessing strong traction, with 2021 year to date
trips as of June 30, 2021 surpassing 2020 full year
trips. The partnership is currently live in 100 major
cities globally with plans to launch nearly all
remaining cities of Lime’s existing footprint in Q3,
including scooters in NYC, London, and SF.
Expansion into Less than Truckload (LtL): Uber
Freight expanded into the $65 billion LtL market,
providing shippers with a single platform to manage
their full truckload and LtL needs, and furthers our
journey to supporting shippers from first to final mile.
Automating the Load Lifecycle: Uber Freight improved
cost per load by 7% QoQ in Q2, with technology driven
improvements across load tracking automation, digital
billing capture, and streamlined load scheduling.
report: On July 22, 2021, Uber released its 2021 ESG
Report and 2021 People & Culture (P&C) Report, which
highlight our perspectives and performance on the
environmental, social, and governance (ESG) issues that
matter most to our business and our stakeholders,
including progress on our diversity, equity, inclusion
and anti-racism efforts in this year’s P&C Report.
IPO: On June 30, 2021, Didi priced its initial
public offering of American Depositary Shares (“ADSs”)
on NYSE at a price per ADS of $14, with four ADSs
representing one ordinary share of Didi. Upon the close
of the IPO in early July, Uber owns approximately 144
million ordinary shares of Didi, with a carrying value
of $7.3 billion for these holdings as of June 30, 2021
(increased from $5.9 billion as of March 31, 2021).
Freight to acquire Transplace: On July 22, 2021,
Uber announced that Uber Freight will acquire Transplace
for approximately $2.25 billion, consisting of up to
$750 million in Uber common stock (to be issued at
pre-close VWAP price) and the remainder in cash. Uber
Freight’s acquisition of Transplace will create one of
the leading logistics technology platforms, with one of
the largest and most comprehensive managed
transportation and logistics networks in the world. The
transaction is subject to regulatory approval and other
customary closing conditions. The transaction is
expected to close in late 2021 or the first half of
Aurora: On July 15, 2021, Aurora announced that it
has agreed to combine with Reinvent Technology Partners
Y (NASDAQ: RTPY), a special purpose acquisition company
(SPAC). Investors and Aurora partners have committed $1
billion in a PIPE. Uber increased the carrying value of
its Aurora investment to $2.1 billion as of June 30,
2021 (from $1.7 billion as of March 31, 2021).
Zomato: On July 23, 2021, Zomato completed its
initial public offering, listing its shares on Indian
stock exchanges. Uber owns 612 million shares of Zomato.
On August 2, 2021, Grab filed a registration statement
on Form F-4 with the Securities and Exchange Commission
in connection with the previously announced proposed
transaction through which it would, if consummated, go
public through a merger with Altimeter Growth Corp
(NASDAQ: AGC), a special purpose acquisition company.
The carrying value of our Grab investment was
approximately $3.6 billion as of June 30, 2021 (from
$2.3 billion as of December 31, 2020).