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Uber Announces Results For Fourth Quarter And Full Year 2023

By Business Wire

Business Wire
Overall Rating

Fourth quarter trips and monthly active platform consumers grew 24% and 15% year-over-year, respectively
Fourth quarter Gross Bookings grew 22% year-over-year and 21% year-over-year on a constant currency basis
Fourth quarter net income of $1.4 billion; Income from operations of $652 million; Record Adjusted EBITDA margin
Fourth quarter operating cash flow of $823 million; Free cash flow of $768 million

SAN FRANCISCO--(BUSINESS WIRE)--Uber Technologies, Inc. (NYSE: UBER) today announced financial results for the quarter and full year ended December 31, 2023.

2023 was an inflection point for Uber, proving that we can continue to generate strong, profitable growth at scale,” said Dara Khosrowshahi, CEO. “Our audiences are larger and more engaged than ever, with our platform powering an average of nearly 26 million daily trips last year.”

Uber’s platform advantages and disciplined investment in new growth opportunities resulted in record engagement and accelerating Gross Bookings in Q4,” said Prashanth Mahendra-Rajah, CFO. “We’re looking forward to sharing more about our strategy and capital allocation plans at our Investor Update next week.”

Financial Highlights for Fourth Quarter 2023

  • Gross Bookings grew 22% year-over-year (“YoY”) to $37.6 billion, or 21% on a constant currency basis, with Mobility Gross Bookings of $19.3 billion (+29% YoY or +28% YoY constant currency) and Delivery Gross Bookings of $17.0 billion (+19% YoY or +17% YoY constant currency). Trips during the quarter grew 24% YoY to 2.6 billion, or approximately 28 million trips per day on average.
  • Revenue grew 15% YoY to $9.9 billion, or 13% on a constant currency basis. Combined Mobility and Delivery revenue grew 22% YoY to $8.7 billion, or 20% on a constant currency basis.
  • Income from operations was $652 million, up $794 million YoY and $258 million quarter-over-quarter (“QoQ”).
  • Net income attributable to Uber Technologies, Inc. was $1.4 billion, which includes a $1.0 billion net tailwind (pre-tax) primarily due to net unrealized gains related to the revaluation of Uber’s equity investments.
  • Adjusted EBITDA of $1.3 billion, up $618 million YoY. Adjusted EBITDA margin as a percentage of Gross Bookings was 3.4%, up from 2.2% in Q4 2022.
  • Net cash provided by operating activities was $823 million and free cash flow, defined as net cash flows from operating activities less capital expenditures, was $768 million.
  • Unrestricted cash, cash equivalents, and short-term investments were $5.4 billion at the end of the fourth quarter.

Outlook for Q1 2024

For Q1 2024, we anticipate:

  • Gross Bookings of $37.0 billion to $38.5 billion
  • Adjusted EBITDA of $1.26 billion to $1.34 billion

Financial and Operational Highlights for Fourth Quarter 2023

Three Months Ended December 31,

(In millions, except percentages)

2022

2023

% Change

% Change

(Constant Currency (1))

Monthly Active Platform Consumers (“MAPCs”)

131

150

15

%

Trips

2,104

2,601

24

%

Gross Bookings

$

30,749

$

37,575

22

%

21

%

Revenue

$

8,607

$

9,936

15

%

13

%

Income (loss) from operations

$

(142

)

$

652

**

Net income attributable to Uber Technologies, Inc. (2)

$

595

$

1,429

140

%

Adjusted EBITDA (1)

$

665

$

1,283

93

%

Net cash provided by (used in) operating activities (3)

$

(244

)

$

823

**

Free cash flow (1), (3)

$

(303

)

$

768

**

(1)

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.

(2)

Q4 2022 net income includes a $756 million net benefit (pre-tax) from revaluations of Uber’s equity investments. Q4 2023 net income includes a $1.0 billion net benefit (pre-tax) from revaluations of Uber’s equity investments.

(3)

Net cash used in operating activities and free cash flow for Q4 2022 includes an approximately $733 million cash outflow related to the settlement of outstanding HMRC VAT claims for periods prior to our UK business model change on March 14, 2022.

** Percentage not meaningful.

Full Year 2023 Financial and Operational Highlights

Year Ended December 31,

(In millions, except percentages)

2022

2023

% Change

% Change

(Constant Currency)

Trips

7,642

9,448

24

%

Gross Bookings

$

115,395

$

137,865

19

%

20

%

Revenue

$

31,877

$

37,281

17

%

18

%

Income (loss) from operations

$

(1,832

)

$

1,110

**

Net income (loss) attributable to Uber Technologies, Inc. (2)

$

(9,141

)

$

1,887

**

Adjusted EBITDA (1)

$

1,713

$

4,052

137

%

Net cash provided by operating activities (3)

$

642

$

3,585

**

Free cash flow (1), (3)

$

390

$

3,362

**

(1)

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.

(2)

Net loss for the year ended December 31, 2022 includes a $7.0 billion net headwind (pre-tax) from revaluations of Uber’s equity investments.

Net income for the year ended December 31, 2023 includes a $1.6 billion net benefit (pre-tax) from revaluations of Uber’s equity investments.

(3)

Net cash provided by operating activities and free cash flow for the year ended December 31, 2022 includes an approximately $733 million cash outflow related to the settlement of outstanding HMRC VAT claims for periods prior to our UK business model change on March 14, 2022.

Net cash provided by operating activities and free cash flow during the year ended December 31, 2023 includes an approximately $622 million cash outflow related to payments of HMRC VAT for multiple assessments for the period of March 2022 to March 2023.

** Percentage not meaningful.

Results by Offering and Segment

Gross Bookings

Three Months Ended December 31,

(In millions, except percentages)

2022

2023

% Change

% Change

(Constant Currency)

Gross Bookings:

Mobility

$

14,894

$

19,285

29

%

28

%

Delivery

14,315

17,011

19

%

17

%

Freight

1,540

1,279

(17

)%

(17

)%

Total

$

30,749

$

37,575

22

%

21

%

Revenue

Three Months Ended December 31,

(In millions, except percentages)

2022

2023

% Change

% Change

(Constant Currency)

Revenue:

Mobility (1), (3)

$

4,136

$

5,537

34

%

31

%

Delivery (2), (3)

2,931

3,119

6

%

4

%

Freight

1,540

1,280

(17

)%

(17

)%

Total

$

8,607

$

9,936

15

%

13

%

(1)

Mobility Revenue in Q4 2023 was negatively impacted by business model changes in some countries that classified certain sales and marketing costs as contra revenue by $207 million. These changes negatively impacted Mobility revenue YoY growth by 5 percentage points.

(2)

Delivery Revenue in Q4 2023 was negatively impacted by business model changes that classified certain sales and marketing costs as contra revenue by $322 million. These changes negatively impacted Delivery revenue YoY growth by 11 percentage points.

(3)

Combined Mobility and Delivery Revenue in Q4 2023 was negatively impacted by business model changes in some countries that classified certain sales and marketing costs as contra revenue by $529 million. These changes negatively impacted combined Mobility and Delivery revenue YoY growth by 7 percentage points.

Revenue Margin

Three Months Ended December 31,

2022

2023

Mobility (1)

27.8

%

28.7

%

Delivery (2)

20.5

%

18.3

%

(1)

Mobility Revenue Margin in Q4 2023 was negatively impacted by business model changes in some countries that classified certain sales and marketing costs as contra revenue by 110 bps.

(2)

Delivery Revenue Margin in Q4 2023 was negatively impacted by business model changes that classified certain sales and marketing costs as contra revenue by 190 bps.

Adjusted EBITDA and Segment Adjusted EBITDA

Three Months Ended December 31,

(In millions, except percentages)

2022

2023

% Change

Segment Adjusted EBITDA:

Mobility

$

1,012

$

1,446

43

%

Delivery

241

476

98

%

Freight

(8

)

(14

)

(75

)%

Corporate G&A and Platform R&D (1)

(580

)

(625

)

(8

)%

Adjusted EBITDA (2)

$

665

$

1,283

93

%

(1)

Includes costs that are not directly attributable to our reportable segments. Corporate G&A also includes certain shared costs such as finance, accounting, tax, human resources, information technology and legal costs. Platform R&D also includes mapping and payment technologies and support and development of the internal technology infrastructure. Our allocation methodology is periodically evaluated and may change.

(2)

“Adjusted EBITDA” is a non-GAAP measure as defined by 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.

Financial Highlights for the Fourth Quarter 2023 (continued)

Mobility

  • Gross Bookings of $19.3 billion: Mobility Gross Bookings grew 29% YoY and 8% QoQ.
  • Revenue of $5.5 billion: Mobility Revenue grew 34% YoY and 9% QoQ. The YoY increase was primarily attributable to an increase in Mobility Gross Bookings due to an increase in Trip volumes. Mobility Revenue Margin of 28.7% increased 90 bps YoY and 40 bps QoQ. Business model changes negatively impacted Mobility Revenue Margin by 110 bps in Q4 2023.
  • Adjusted EBITDA of $1.4 billion: Mobility Adjusted EBITDA increased $434 million YoY and $159 million QoQ. Mobility Adjusted EBITDA margin was 7.5% of Gross Bookings compared to 6.8% in Q4 2022 and 7.2% in Q3 2023. Mobility Adjusted EBITDA margin improvement YoY was primarily driven by better cost leverage from higher volume.

Delivery

  • Gross Bookings of $17.0 billion: Delivery Gross Bookings grew 19% YoY and 6% QoQ.
  • Revenue of $3.1 billion: Delivery Revenue grew 6% YoY and 6% QoQ. Delivery Revenue Margin of 18.3% decreased 220 bps YoY and increased 10 bps QoQ. Business model changes negatively impacted Delivery Revenue Margin by 190 bps in Q4 2023.
  • Adjusted EBITDA of $476 million: Delivery Adjusted EBITDA grew $235 million YoY and $63 million QoQ. Delivery Adjusted EBITDA margin was 2.8% of Gross Bookings, compared to 1.7% in Q4 2022 and 2.6% in Q3 2023. Delivery Adjusted EBITDA margin improvement YoY was primarily driven by better cost leverage from higher volumes and increased Advertising revenue.

Freight

  • Revenue of $1.3 billion: Freight Revenue declined 17% YoY and was flat QoQ. The YoY decrease was 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 $6 million YoY and $1 million QoQ. Freight Adjusted EBITDA margin as a percentage of Gross Bookings declined 60 bps YoY and 10 bps QoQ to (1.1)%.

Corporate

  • Corporate G&A and Platform R&D: Corporate G&A and Platform R&D expenses of $625 million, compared to $580 million in Q4 2022, and $595 million in Q3 2023. Corporate G&A and Platform R&D as a percentage of Gross Bookings decreased 20 bps YoY and remained flat 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 was $6.1 billion. Non-GAAP cost of revenue was $6.0 billion, representing 16.1% of Gross Bookings, compared to 17.3% and 16.0% in Q4 2022 and Q3 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 $702 million. Non-GAAP operations and support was $646 million, representing 1.7% of Gross Bookings, compared to 1.8% in both Q4 2022 and Q3 2023. 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 $935 million. Non-GAAP sales and marketing was $912 million, representing 2.4% of Gross Bookings, compared to 3.6% and 2.6% in Q4 2022 and Q3 2023, respectively. On a YoY basis, non-GAAP sales and marketing as a percentage of Gross Bookings decreased due to business model changes in some countries 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 $784 million. Non-GAAP research and development was $483 million, representing 1.3% of Gross Bookings, compared to 1.5% and 1.4% in Q4 2022 and Q3 2023, respectively. On a YoY basis, non-GAAP research and development as a percentage of Gross Bookings decreased due to improved fixed cost leverage.
    • General and administrative: GAAP general and administrative was $603 million. Non-GAAP general and administrative was $564 million, representing 1.5% of Gross Bookings, compared to 1.7% and 1.5% in Q4 2022 and Q3 2023, respectively. 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 Fourth Quarter 2023

Platform

  • Monthly Active Platform Consumers (“MAPCs”) reached 150 million: MAPCs grew 15% YoY to 150 million, driven by continued improvement in consumer activity for both our Mobility and Delivery offerings.
  • Trips of 2.6 billion: Trips on our platform grew 24% YoY and 7% QoQ, driven by both Mobility and Delivery growth. Both Mobility and Delivery trips were up QoQ. Monthly trips per MAPC grew 8% YoY to 5.8.
  • Supporting earners: As part of our goal of being the world’s best platform for flexible work, announced over 20 new improvements to the Uber Driver app, while also making earning on Uber safer with features like Record my Ride and fairer through improvements to our account deactivation process. Drivers and couriers earned an aggregate $17.2 billion (including tips) during the quarter, with earnings up 24% YoY, or 23% on a constant currency basis.
  • Membership: Launched Uber One, our single cross-platform membership program, in Belgium, Brazil, Dominican Republic, Ecuador, Poland, Puerto Rico, and Switzerland. Uber One is now available across 25 countries.
  • Advertising: Launched Sponsored Items on Uber Eats in Brazil, Chile, Costa Rica and Mexico. In addition, expanded Sponsored Items to the alcohol category. Further, continued our direct sales global expansion with the addition of Japan, Taiwan and Spain. Active advertising merchants during the quarter exceeded 550K, up 75% YoY.
  • Family profiles with teen accounts: Building on success in the US and Canada, expanded teen accounts internationally, starting with Brazil and with plans to expand to additional markets.
  • Uber for Business (“U4B”) expense integrations: Announced U4B’s integrations with leading expense management providers Brex and Ramp to automate receipt matching for Uber rides and meals, helping companies of all sizes simplify expenses and save time on and off the road. In addition, launched a new meal planning feature on Uber Eats that office managers and administrators can use to make group ordering easy and enjoyable.

Mobility

  • Earner and rider safety: Announced the expansion of key safety features to new geographies and brought the Record my Ride feature to drivers in a dozen US cities. In addition, integrated Android Auto with the Uber Driver app following our recent CarPlay integration, and enabled drivers to share real-time traffic and route information that will be visible to other drivers, making the experience better for everyone.
  • Taxis: Launched our coalesced taxi product in Washington, DC; Paris, France; Cancún, Mexico; and Victoria, Australia, increasing reliability of supply and providing opportunities for taxi drivers in these markets to earn more on Uber. In addition, announced that London’s iconic Black Cabs will soon be listed in the app.
  • UberX Share: Expanded UberX Share to 11 new cities across key markets in EMEA, ANZ and the US, including Boston, Denver, Orlando and Zurich.
  • Uber Rent, Valet & Carshare: Launched Uber Rent in Belgium, France, Germany, Greece, Italy, Netherlands, Portugal and Spain, giving consumers access to a range of rental car partners in the Uber app. In addition, expanded Uber Valet, now available in nine US markets, enabling Uber Rent users to have a rental car delivered to their door and picked up upon their return. Further, launched Uber Carshare in Boston and Toronto.
  • Uber Connect: Launched the Return a Package feature in time for the holiday season, allowing Uber and Uber Eats customers in over 4,950 US cities and towns to have a courier pick up their prepaid packages and drop them off at a local post office, UPS, or FedEx location. In addition, launched a Store Pickup feature in over 1,700 cities, allowing customers to have an Uber courier pick up a purchased item from a store to be delivered to a recipient of their choosing.

Delivery

  • Merchant selection: Launched partnerships with popular US restaurants, grocery stores and retailers, including Big Lots, Torchy’s Tacos, Sprouts Farmers Market, Eataly, and all 6,700 US Domino’s locations. Building upon success in the US, expanded our reach with Domino’s including a pilot live with over 180 stores across the UK and Ireland, and launching with nearly 200 locations in Taiwan.
  • Multi-merchant ordering: Introduced the ability for consumers to place orders from two nearby Uber Eats merchants—across restaurants, alcohol, convenience and more—with a single Delivery Fee and checkout and delivery experience, boosting convenience for consumers and leveraging our efficient batching and routing technologies.
  • Cornershop integration: Completed the integration of Cornershop, bringing Latin American grocery delivery and Cornershop retail partners onto the Uber platform, enabling former Cornershop consumers to benefit from Uber One membership, and unifying the Uber Eats grocery delivery experience globally.
  • Improving the grocery courier experience: Made improvements to the grocery courier experience that enable shoppers to accept and complete orders more efficiently, including providing location metadata, offering live order support, and enabling merchant shoppers to easily claim merchant pick-and-pack (MPP) orders when there are multiple orders from the same merchant in progress at once.
  • Uber Direct momentum: Launched and expanded Uber Direct partnerships, including launching an exclusive deal with KFC in the UK, launching Burger King in Germany, scaling 7-11 and McDonald’s in Japan, and launching Japanese supermarket chain MaxValu.

Freight

  • Enterprise customer momentum: Onboarded several new enterprise customers to the Transportation Management business driven in part by enhanced Uber Freight Transportation Management System (TMS) capabilities, including expanded end-to-end shipment visibility across rail and ocean modes.
  • Sustainability initiatives: Launched our new Emissions Dashboard to provide shippers with comprehensive insight into their network’s emissions across all modes quantified using the Global Logistics Emissions Council (GLEC) framework. In addition, announced a partnership with Greenlane, a joint venture between Daimler Truck North America, NextEra Energy Resources, LLC and BlackRock, to accelerate the development and installation of commercial electric truck charging stations.
  • Torc partnership: Announced a strategic partnership with Torc, an independent subsidiary of Daimler Truck AG, in which Torc will leverage and apply insights from Uber Freight’s vast network to support the development and deployment of its autonomous truck.

Webcast and conference call information

A live audio webcast of our fourth quarter ended December 31, 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 February 7, 2024 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 47 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 most recent quarterly report on Form 10-Q for the quarter ended September 30, 2023 and subsequent annual reports, 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.

Contacts

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

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First published on Wed, Feb 7, 2024

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