Uber Technologies, Inc. — Q1 2021 Form 10-Q
Reporting period: Three months ended March 31, 2021; figures are unaudited and in U.S. dollars unless stated otherwise. Uber operates Mobility, Delivery, and Freight platform businesses. Comparisons below are with Q1 2020 unless noted.
Financial and operating performance
| Metric | Q1 2021 | Prior period / change |
|---|---|---|
| Revenue | $2.903 billion | $3.248 billion; down 11%. Excluding the $600 million UK driver-claims accrual, revenue was $3.503 billion, up 8% (6% constant currency). |
| Net loss attributable to Uber | $108 million; loss per share $0.06 | $2.936 billion; loss per share $1.70. |
| Loss from operations | $1.524 billion | $1.263 billion. |
| Adjusted EBITDA loss | $359 million | $612 million; improved 41%. |
| Operating cash flow | $(611) million | $(463) million. |
| Cash flow from investing / financing | $(250) million / $(226) million | $(1.856) billion / $(63) million. |
| Cash and liquidity | $4.836 billion cash and equivalents; $819 million short-term investments | Unrestricted cash, equivalents and short-term investments totaled about $5.7 billion at quarter-end. |
| Debt | $7.907 billion principal debt; $7.801 billion long-term debt carrying value | Company reported about $8.0 billion total outstanding indebtedness. |
| Gross Bookings | $19.536 billion | Up 24% reported and 22% constant currency. |
| MAPCs / Trips | 98 million / 1.447 billion | Down 5% / 13% year over year. |
Segment trends
- Mobility: Revenue $853 million, down 65%; adjusted EBITDA profit $298 million, down 49%. Mobility Gross Bookings fell 36% constant currency. Take rate was 12.6%, or 21.5% excluding the UK accrual.
- Delivery: Revenue $1.741 billion, up 230%; Gross Bookings rose 157% constant currency. Adjusted EBITDA loss narrowed to $200 million from $313 million; take rate increased to 14.0% from 11.3%.
- Freight: Revenue $301 million, up 51%; adjusted EBITDA loss narrowed to $29 million from $64 million.
Material changes and unusual items
- A $600 million accrual for historical UK driver-classification claims reduced reported revenue and Mobility results. Revenue excluding this item is a non-GAAP measure.
- The January sale of the Advanced Technologies Group (ATG) business to Aurora produced a $1.644 billion gain on sale, included in other income. Uber received Aurora common shares valued at approximately $1.3 billion and separately invested $400 million for preferred shares; its Aurora investment was valued at $1.7 billion at quarter-end.
- Other income was $1.710 billion versus expense of $1.795 billion in Q1 2020, primarily reflecting the ATG gain and the absence of the prior-year $1.9 billion investment impairment. These items materially affect the net-loss comparison.
- Uber recorded a $1.156 billion after-tax unrealized gain in other comprehensive income, primarily from revaluing its Grab debt investment. This increased accumulated other comprehensive income to $654 million.
- Cost of revenue increased 15% to $1.710 billion, including higher Delivery People and Freight carrier payments. Sales and marketing rose 25% to $1.103 billion, while general and administrative expense fell 46% to $464 million.
- Uber refinanced $2.6 billion of term loans into facilities maturing in 2025 and 2027. It reported compliance with debt covenants and no balance outstanding on its $2.3 billion revolving credit facility.
Outlook, commentary and risks
- Management described signs of recovery, but said Mobility demand was recovering faster than driver availability and Delivery demand continued to exceed courier availability. Uber said it was increasing driver incentives in the near term.
- No numerical revenue, earnings, or cash-flow guidance is provided in the filing. Management said the pandemic’s future effects remain uncertain and results for the quarter may not indicate future periods.
- Management stated that available funding and the credit line should cover anticipated cash requirements for at least the next 12 months. Operating cash use nevertheless increased year over year.
- Driver classification remains a significant legal and operating risk. The UK Supreme Court upheld worker status for covered drivers; Uber announced worker protections for UK drivers and accrued $600 million for historical claims. California Proposition 22 is in effect, but litigation concerning earlier periods remains pending. Massachusetts and other jurisdictional proceedings also continue.
- Other material risks include COVID-19 effects, competition and incentive spending, driver and courier supply, regulatory limits on operations, privacy and cybersecurity, insurance and legal exposures, and the valuation and liquidity of private-company investments. Uber cautioned that its private investments are difficult to value.
Important facts for investors to verify
- Track Mobility recovery, driver availability, incentive spending, and the effect on Mobility take rate and segment profitability.
- Monitor Delivery growth and whether improving adjusted EBITDA can continue as demand, promotions, and delivery costs change.
- Review the scope and development of UK historical claims, related accruals, and driver-classification outcomes in other jurisdictions.
- Assess recurring operating cash use, liquidity, debt obligations, and the availability and conditions of the revolving credit facility.
- Separate recurring operating performance from the ATG divestiture gain and investment revaluations; verify the assumptions and future realizability of private investment values.