Uber Announces Results for Fourth Quarter and Full Year 2022

admin February 8, 2023

1 15 minutes read

Gross Bookings grew 19% year-over-year and 26% year-over-year on a constant currency basis
Mobility Gross Bookings, Adjusted EBITDA and Adjusted EBITDA margin at all-time quarterly highs

SAN FRANCISCO–(BUSINESS WIRE)–Uber Technologies, Inc. (NYSE: UBER) today announced financial results for the quarter and full year ended December 31, 2022.

Financial Highlights for Fourth Quarter 2022

Gross Bookings grew 19% year-over-year (“YoY”) to $30.7 billion, or 26% on a constant currency basis, with Mobility Gross Bookings of $14.9 billion (+31% YoY or +37% YoY constant currency) and Delivery Gross Bookings of $14.3 billion (+6% YoY or +14% YoY constant currency). Trips during the quarter grew 19% YoY to 2.1 billion, an all-time quarterly high, or approximately 23 million trips per day on average.
Revenue grew 49% YoY to $8.6 billion, or 59% on a constant currency basis, with Revenue growth significantly outpacing Gross Bookings growth due to a change in the business model for our UK Mobility business and the acquisition of Transplace by Uber Freight.
Net income attributable to Uber Technologies, Inc. was $595 million, which includes a $756 million net benefit (pre-tax) primarily due to net unrealized gains related to the revaluation of Uber’s equity investments.
Adjusted EBITDA of $665 million, up $579 million YoY. Adjusted EBITDA margin as a percentage of Gross Bookings was 2.2%, up from 0.3% in Q4 2021. Incremental margin as a percentage of Gross Bookings was 11.9% YoY.
Net cash used in operating activities was $244 million and free cash flow, defined as net cash flows from operating activities less capital expenditures, was $(303) million. Through 2022, net cash provided by operating activities was $642 million, and free cash flow was $390 million. Net cash from operating activities and free cash flow during Q4 2022 and full year 2022 were impacted by a cash outflow of approximately $733 million (GBP 613 million), related to the previously disclosed HMRC VAT claims settlement in the UK. Excluding this settlement, free cash flow would have been $430 million and $1.1 billion in Q4 2022 and full year 2022, respectively.
Unrestricted cash, cash equivalents, and short-term investments were $4.3 billion at the end of the fourth quarter.

“We ended 2022 with our strongest quarter ever, with robust demand and record margins,” said Dara Khosrowshahi, CEO. “Our global scale and unique platform advantages position us well to accelerate this momentum into 2023.”

“In 2022, we significantly exceeded our profitability outlook, with an incremental margin of 10%,” said Nelson Chai, CFO. “Our outlook for a Gross Bookings and Adjusted EBITDA step up in Q1 builds on that progress, and sets us up for yet another record year.”

Outlook for Q1 2023

For Q1 2023, we anticipate:

Gross Bookings to grow 20% to 24% YoY on a constant currency basis, with an expected 3 percentage point currency headwind, translating to a range of $31.0 billion to $32.0 billion
Adjusted EBITDA of $660 million to $700 million

Financial and Operational Highlights for Fourth Quarter 2022

	Three Months Ended December 31,
(In millions, except percentages)	2021			2022			% Change		% Change (Constant Currency ⁽¹⁾)

Monthly Active Platform Consumers (“MAPCs”)		118			131		11	%
Trips		1,769			2,104		19	%
Gross Bookings	$	25,866		$	30,749		19	%	26	%
Revenue	$	5,778		$	8,607		49	%	59	%
Net income attributable to Uber Technologies, Inc. ⁽²⁾	$	892		$	595		(33	)%
Adjusted EBITDA ⁽¹⁾	$	86		$	665		**
Net cash used in operating activities ⁽³⁾	$	(107	)	$	(244	)	(128	)%
Free cash flow ^{(1), (3)}	$	(187	)	$	(303	)	(62	)%
Free cash flow, excluding HMRC VAT claims settlement ⁽¹⁾	$	(187	)	$	430		**

⁽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 income includes a $1.2 billion net benefit (pre-tax) and a $756 million net benefit (pre-tax) from revaluations of Uber’s equity investments in Q4 2021 and Q4 2022, respectively.
⁽³⁾		Net cash used in operating activities and free cash flow for Q4 2022 includes an approximately $733 million (GBP 613 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 2022 Financial and Operational Highlights

	Year Ended December 31,
(In millions, except percentages)	2021			2022			% Change		% Change (Constant Currency ⁽¹⁾)

Trips		6,368			7,642		20	%
Gross Bookings	$	90,415		$	115,395		28	%	33	%
Revenue	$	17,455		$	31,877		83	%	90	%
Net loss attributable to Uber Technologies, Inc. ⁽²⁾	$	(496	)	$	(9,141	)	**
Mobility Adjusted EBITDA	$	1,596		$	3,299		107	%
Delivery Adjusted EBITDA	$	(348	)	$	551		**
Adjusted EBITDA ⁽¹⁾	$	(774	)	$	1,713		**
Net cash provided by (used in) operating activities ⁽³⁾	$	(445	)	$	642		**
Free cash flow ^{(1), (3)}	$	(743	)	$	390		**
Free cash flow, excluding HMRC VAT claims settlement ⁽¹⁾	$	(743	)	$	1,123		**

⁽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 includes a $1.1 billion net benefit (pre-tax) and a $7.0 billion net headwind (pre-tax) from revaluations of Uber’s equity investments in 2021 and 2022, respectively.
⁽³⁾		Net cash used in operating activities and free cash flow for the year ended December 31, 2021 benefited by a net amount of $1.0 billion as a result of cash impacts related to a legacy auto insurance transfer.
		Net cash provided by operating activities and free cash flow for the year ended December 31, 2022 includes an approximately $733 million (GBP 613 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.

Results by Offering and Segment
Gross Bookings

	Three Months Ended December 31,
(In millions, except percentages)	2021		2022		% Change		% Change (Constant Currency)

Gross Bookings:
Mobility	$	11,340	$	14,894	31	%	37	%
Delivery		13,444		14,315	6	%	14	%
Freight⁽¹⁾		1,082		1,540	42	%	43	%
Total	$	25,866	$	30,749	19	%	26	%

⁽¹⁾

Beginning in Q4 2021, Freight Gross Bookings include contributions from the acquisition of Transplace which closed on November 12, 2021.

Revenue

	Three Months Ended December 31,
(In millions, except percentages)	2021		2022		% Change		% Change (Constant Currency)

Revenue:
Mobility ⁽¹⁾	$	2,278	$	4,136	82	%	94	%
Delivery ⁽²⁾		2,420		2,931	21	%	33	%
Freight ⁽³⁾		1,080		1,540	43	%	43	%
Total	$	5,778	$	8,607	49	%	59	%

⁽¹⁾		Mobility Revenue in Q4 2022 benefited by a net amount of $1.2 billion from business model changes in the UK.
⁽²⁾		Delivery Revenue in Q4 2021 and Q4 2022 benefited from business model changes in some countries that classify certain payments and incentives as cost of revenue by $548 million and $686 million, respectively.
⁽³⁾		Freight Revenue includes contributions from the acquisition of Transplace which closed on November 12, 2021.

Take Rates

	Three Months Ended December 31,
	2021		2022

Mobility ⁽¹⁾	20.1	%	27.8	%
Delivery ⁽²⁾	18.0	%	20.5	%

⁽¹⁾		Mobility Take Rate in Q4 2022 includes an 800 bps net benefit from business model changes in the UK. Excluding this impact, Mobility Take Rate would be 19.8%. Mobility Take Rate was also adversely impacted by pass-through fuel surcharges implemented through Q4 2022 in various markets globally.
⁽²⁾		Delivery Take Rate in Q4 2021 and Q4 2022 benefited from business model changes in some countries that classify certain payments and incentives as cost of revenue by 410 bps and 480 bps, respectively.

Adjusted EBITDA and Segment Adjusted EBITDA

	Three Months Ended December 31,
(In millions, except percentages)	2021			2022			% Change

Segment Adjusted EBITDA:
Mobility	$	575		$	1,012		76	%
Delivery		25			241		**
Freight		(25	)		(8	)	68	%
Corporate G&A and Platform R&D ^{(1), (2)}		(489	)		(580	)	(19	)%
Adjusted EBITDA⁽³⁾	$	86		$	665		**

⁽¹⁾		Excludes stock-based compensation expense.
⁽²⁾		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.
⁽³⁾		“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.
**		Percentage not meaningful.

Revenue by Geographical Region

	Three Months Ended December 31,
(In millions, except percentages)	2021		2022		% Change

United States and Canada (“US&CAN”) ⁽¹⁾	$	3,613	$	4,976	38	%
Latin America (“LatAm”)		419		547	31	%
Europe, Middle East and Africa (“EMEA”) ⁽²⁾		995		2,092	110	%
Asia Pacific (“APAC”)		751		992	32	%
Total	$	5,778	$	8,607	49	%

⁽¹⁾		Beginning in Q4 2021, US&CAN Revenue includes contributions from the acquisition of Transplace which closed on November 12, 2021.
⁽²⁾		EMEA Revenue in Q4 2022 benefited by an amount of $1.2 billion from Mobility business model changes in the UK.

Financial Highlights for the Fourth Quarter 2022 (continued)

Mobility

Gross Bookings of $14.9 billion: Mobility Gross Bookings grew 37% YoY on a constant currency basis. On a sequential basis, Mobility Gross Bookings grew 9% quarter-over-quarter (“QoQ”), with growth in all geographic regions.
Revenue of $4.1 billion: Mobility Revenue grew 82% YoY and 8% QoQ. The YoY increase was primarily driven by a $1.2 billion benefit related to a UK business model change that classifies most driver payments and incentives as cost of revenue. Mobility Take Rate of 27.8% increased 770 bps YoY and decreased 10 bps QoQ. The UK business model change impacting revenue represented an 800 bps net benefit to Take Rate in the quarter. Additionally, Mobility Take Rate was adversely impacted by pass-through fuel surcharges implemented through Q4 2022 in various markets globally.
Adjusted EBITDA of $1.0 billion: Mobility Adjusted EBITDA increased $437 million YoY and $114 million QoQ. Mobility Adjusted EBITDA margin was 6.8% of Gross Bookings compared to 5.1% in Q4 2021 and 6.6% in Q3 2022. Mobility Adjusted EBITDA margin improvement YoY was primarily driven by better cost leverage from higher volume and a meaningful reduction in driver supply investments.

Delivery

Gross Bookings of $14.3 billion: Delivery Gross Bookings grew 14% YoY on a constant currency basis. Delivery Gross Bookings in US & Canada were up 14% YoY and in all other markets were up 15% YoY on a constant currency basis.
Revenue of $2.9 billion: Delivery Revenue grew 21% YoY and 6% QoQ. Take Rate of 20.5% grew 250 bps YoY and grew 30 bps QoQ. Business model changes in some countries that classify certain payments and incentives as cost of revenue benefited Delivery Take Rate by 480 bps in the quarter (compared to 410 bps benefit in Q4 2021 and 500 bps benefit in Q3 2022).
Adjusted EBITDA of $241 million: Delivery Adjusted EBITDA grew $216 million YoY and $60 million QoQ, driven by higher volumes, increased Advertising revenue, and improved network efficiencies. Delivery Adjusted EBITDA margin as a percentage of Gross Bookings reached 1.7%, compared to 0.2% in Q4 2021 and 1.3% in Q3 2022.

Freight

Revenue of $1.5 billion: Freight Revenue grew 43% YoY and declined 12% QoQ. Freight Revenue includes contributions from the acquisition of Transplace which closed on November 12, 2021.
Adjusted EBITDA loss of $8 million: Freight Adjusted EBITDA grew $17 million YoY but declined $9 million QoQ. Freight Adjusted EBITDA margin as a percentage of Gross Bookings improved 1.8 percentage points YoY to (0.5)% driven by increased marketplace efficiency on our digital platform and strong sales momentum in our Transportation Management business.

Corporate

Corporate G&A and Platform R&D: Corporate G&A and Platform R&D expenses of $580 million, compared to $489 million in Q4 2021, and $564 million in Q3 2022. On a YoY basis, Corporate G&A and Platform R&D remained flat as a percentage of Gross Bookings.

GAAP and Non-GAAP Costs and Operating Expenses

Cost of revenue excluding D&A: GAAP cost of revenue equaled non-GAAP cost of revenue and was $5.3 billion, representing 17.3% of Gross Bookings, compared to 12.0% and 17.7% in Q4 2021 and Q3 2022, respectively. On a YoY basis, non-GAAP cost of revenue as a percentage of Gross Bookings increased due to the classification of certain Delivery and Mobility payments as cost of revenue attributable to business model changes in some countries and the acquisition of Transplace.
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 $605 million. Non-GAAP operations and support was $564 million, representing 1.8% of Gross Bookings, compared to 2.0% in both Q4 2021 and Q3 2022. 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 $1.1 billion. Non-GAAP sales and marketing was $1.1 billion, representing 3.6% of Gross Bookings, compared to 4.8% and 3.9% in Q4 2021 and Q3 2022, respectively. On a YoY basis, non-GAAP sales and marketing as a percentage of Gross Bookings decreased due to a decrease in consumer discounts, rider facing loyalty expense, promotions, credits and refunds.
- Research and development: GAAP research and development was $747 million. Non-GAAP research and development was $452 million, representing 1.5% of Gross Bookings, compared to 1.4% and 1.6% in Q4 2021 and Q3 2022, respectively. As a percentage of Gross Bookings, non-GAAP research and development increased on a YoY basis due to higher employee costs, but decreased on a QoQ basis with slower headcount growth.
- General and administrative: GAAP general and administrative was $745 million. Non-GAAP general and administrative was $523 million, representing 1.7% of Gross Bookings, compared to 1.8% and 1.7% in Q4 2021 and Q3 2022, 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 2022

Platform

Monthly Active Platform Consumers (“MAPCs”) reached 131 million: MAPCs grew 11% YoY and 6% QoQ to 131 million, driven by continued improvement in consumer activity for our Mobility offerings. Mobility MAPCs reached an all-time high of over 100 million.
Trips of 2.1 billion: Trips on our platform grew 19% YoY and 8% QoQ, driven by Mobility and Delivery growth.
Membership: Launched our single cross-platform membership program, Uber One, in Chile, France, Japan, Spain and Taiwan. Uber One is now available across 12 countries. In addition, announced a new offer for Capital One cardholders to get up to 24 months of free Uber One plus 10x cash back benefits. Our global member base nearly doubled YoY to nearly 12 million members.
Earners reached an all-time high of 5.4 million: Monthly active drivers and couriers on Uber reached 5.4 million. Expanded the rollout of Upfront Pricing and Upfront Destination information to earners outside the US, starting with EMEA.
Advertising: Expanded Journey Ads, our Mobility in-app ad format, now available in eight markets. Active advertising merchants during the quarter exceeded 315K. Our revenue run-rate from Advertising exceeded $500 million.
France platform work agreement: Signed the first ever sectoral bargaining agreement for drivers in the Private Hire Vehicle industry in France, guaranteeing a minimum revenue per trip for drivers no matter which application they use, creating a level playing field across taxi and ride-hailing platforms. This agreement marks an important step towards protecting drivers’ earnings while maintaining their independent worker status.
Motional robotaxi service launch: Announced the launch of Motional’s public robotaxi service, marking the first time public riders can access a Motional autonomous vehicle (“AV”) on Uber’s network, starting with Las Vegas before expanding at a future date to Los Angeles, CA. This launch follows the recent announcement of a 10-year framework agreement that is expected to create one of the largest deployments of AVs on a major ride-hail network.
Cartken partnership: Announced a partnership with Cartken for food deliveries via automated robots in Miami, FL. Uber Eats consumers in Miami will have the opportunity to have orders delivered by Cartken’s self-driving robot.

Mobility

Earner safety: Announced a suite of new product features geared toward driver safety, including reducing left turns, intersection alerts, and audio recording.
Uber Travel expansion: Expanded Uber Travel to over 10,000 cities throughout the world, including all major US & Canada cities. Uber Travel enables consumers to easily link hotel, flight and restaurant reservations to the Uber app and reserve rides for entire itineraries using Uber Reserve.
Uber Charter expansion: Expanded Uber Charter to over 20 major US cities, allowing consumers to book a party bus, passenger van or coach bus directly in the Uber app or on the web.
Uber Carshare launch: Launched Uber Carshare in Australia, following the acquisition of Car Next Door, offering easy access to cars nearby when consumers want to drive themselves.
Uber Explore partnerships: Launched new partnerships with Viator and OpenTable to browse and book experiences within the Uber app.
Electric Vehicle (“EV”) partnerships: Expanded partnership with Hertz in January to make up to 25,000 EVs available to drivers on Uber’s platform to rent across Europe by 2025. In addition, announced that through our partnership, rental company Localiza Zarp will launch new charging stations for EVs in São Paulo with the intention to make it easier for drivers to use and charge their vehicles.

Delivery

Growth metrics: Delivery continued to demonstrate stable consumer, merchant and courier metrics even as the macroeconomic environment softened around the world. Delivery MAPCs, basket size and order frequency grew 2% YoY, 1% YoY and 4% YoY respectively, and were up QoQ. Active merchants grew 8% YoY to exceed 890K in Q4. Globally, active couriers grew 5% YoY, and grew 10% YoY in the U.S.
US Grocery expansion: Announced new and expanded grocery partnerships: Food Bazaar in the New York metro-area, and the expansion of our partnership with Grocery Outlet, including roughly 300 new locations across New Jersey, Maryland and Pennsylvania. In addition, launched partnership with US grocer Meijer across nearly 250 Midwest locations.
UK Gopuff launch: Announced a new partnership with quick commerce business Gopuff to offer their range of alcohol, snacks, and groceries on the Uber Eats platform across 14 cities in the UK. This partnership marks the first time Gopuff has worked with a food delivery app in the UK.
Uber Direct momentum: Launched Uber Direct in Japan with our first two partners in the market: Rakuten Mobile, a telecommunications company under the Rakuten Group, and Sushiro, one of Japan’s leading sushi restaurant chains. In addition, partnered with Walgreens in the US to help power their new round-the-clock delivery services.
Visa partnership: Announced a new program with Visa, designed to support small-and medium-sized businesses in their transition to green and sustainable packaging solutions.

Freight

Volvo autonomous partnership: Announced a partnership with Volvo Autonomous Solutions (V.A.S.) to deploy Volvo’s autonomous transport solution on the Uber Freight network, beginning in 2023. Following the partnerships with Waymo and Aurora, Uber Freight is building the most extensive AV network in the industry.

Webcast and conference call information

A live audio webcast of our fourth quarter and year ended December 31, 2022 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 8, 2023 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 37 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, 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, 2022 and subsequent annual reports, quarterly reports and other filings filed with the Securities and Exchange Commission from time to time.

Contacts

Investors and analysts: [email protected]
Media: [email protected]

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admin February 8, 2023

1 15 minutes read