Uber Tops Forecasts - Sees Q4 2020
Uber Technologies reported
financial results for the fourth quarter and full year ended December
31, 2019. The firm had a loss per share, excluding certain items of 64
cents with 68 cents as expected. On top line revenue, Uber noted $4.07
billion with $4.06 billion expected. CEO Dara Khosrowshahi moved EBITDA
profitability target to Q4 2020, which previously was set at 2021.
“2019 was a transformational year
for Uber and I’m gratified by our progress, steadily delivering against
the commitments we’ve made to our shareholders on our path to
profitability,” said Dara Khosrowshahi, CEO. “We recognize that the era
of growth at all costs is over. In a world where investors increasingly
demand not just growth, but profitable growth, we are well-positioned to
win through continuous innovation, excellent execution, and the
unrivaled scale of our global platform.”
“Our revenue growth continued to accelerate in Q4, with adjusted net
revenue up 43% year-over-year in constant currency,” said Nelson Chai,
CFO. “We consistently outperformed our adjusted EBITDA targets in 2019,
including in the fourth quarter. Our focus on disciplined capital
allocation is part and parcel to achieving our financial goals, and the
recent sale of our India Eats business further demonstrates that
Operating Highlights for the Fourth Quarter 2019
- Global brand
strength drove 2019 download leadership in 2 key segments -
Most downloaded app globally in both Rideshare (Uber app) and
Food Delivery (Uber Eats) categories on both the Apple App Store
and Google Play Store (source: Sensor Tower); Identified as one
of the top 100 U.S. brands, ranked #1 on the most innovative
brand and great consumer experience rankings, by WPP and Kantar
- Robust MAPC
growth - We added 20 million MAPCs year-over-year to reach
111 million, while cross platform users grew 68%.
- Rides premium
category continued rapid expansion - We launched Uber
Comfort in Latin America and EMEA, following the success of our
U.S. launch. Comfort helped to drive 54% year-over-year growth
in our premium Rides offerings globally.
- UberX trip
growth remained robust - Rides trips grew 23% in Q4, with
trips ex-shared rides growing 26%, consistent with Q3.
- Key new
markets growing rapidly - High-priority new markets
(Argentina, Germany, Japan, South Korea and Spain) delivered
Gross Bookings growth in Q4 that was more than four times
overall Rides Gross Bookings growth, on a constant currency
business outgrows overall Rides - In Q4 2019 our Airport
business outgrew overall Rides. We now serve over 650 airports
globally and continue to see our airport riders prefer our
premium products. In 2020, we will continue to roll out our PIN
product (riders receive a PIN and take it to the driver next in
line rather than seeking out a specific driver), which has been
well-received by riders and by airports.
- Uber for
Business (U4B) expanding - Gross Bookings from our business
travel offering continued to accelerate in Q4 to $1.2 billion,
fueled by 75% growth in managed business accounts and through
vertical initiatives such as Uber Health, which itself grew over
300% YoY and now works with some of the largest non-emergency
medical transportation (NEMT) brokers in the U.S.
- U.S. Rides
insurance carrier added - We added Liberty Mutual as a U.S.
Rides insurance provider. We also expanded our partnerships with
Progressive and Farmers, two existing U.S. Rides insurance
partners. During Q4 2019, Rides insurance costs were down
year-over-year and quarter-over quarter as a percentage of Gross
Bookings and ANR.
London TfL decision - Uber will continue to operate in
London as we appeal Transport for London’s decision to not renew
our license. We also plan to roll out additional systems to
strengthen identity confirmation of drivers, including a facial
matching process, which we believe are the most robust in the
- Released U.S.
Safety Report - Published the first comprehensive
publication of its kind, sharing details on Uber’s safety
progress and data related to reports of the most serious safety
incidents occurring on our platform.
- Eats achieves
comparable Gross Bookings in a top 10 Rides country - As
proof of the strength of our platform, in only three years since
launch, Eats has achieved comparable Gross Bookings to Rides in
Australia despite Rides having launched eight years ago.
subscriptions continue expansion - Eats subscriptions rolled
out to all U.S. cities (ex-California) and to Taiwan and South
Africa, our first international markets to launch this product.
continued to expand its offering to carriers - In-app
bundles, which allow carriers to book multiple loads at once,
have reduced empty miles versus non-Uber Freight matched
bundles. We also launched a web portal geared towards trucking
fleets in late Q3, with web-based carriers scaling to an average
of 10% of overall supply in Q4.
- JUMP launched
new markets and won permits in key cities - Launched
scooters in San Francisco, bikes in Rome, and scooters in São
Paulo. JUMP also won permits to expand in key markets such as
Washington, D.C. and four markets across Australia and New
Zealand, which complement the Uber Platform. In Washington,
D.C., our permit win will make us the largest combined dockless
fleet operator in the city across bikes and scooters.
India Eats business - Zomato, a popular food app in India,
acquired our food delivery business in India, in-line with our
strategy to focus on markets where we can achieve a leading
position. Eats ANR take rate would have been 10.1% in Q4 2019
excluding the impact of Uber Eats in India.
- Completed the
previously announced acquisition of Careem - We completed
the Careem acquisition following the approval of the transaction
in Egypt, Jordan, Saudi Arabia and the United Arab Emirates,
which represent substantially all of the major markets where
regulatory approval was required. We have not received
regulatory approval in Pakistan, Qatar and Morocco to date and
the transaction will not close in these countries until approval
from the relevant competition authorities is obtained.
Introduced new product features in California - Introduced a
number of product and policy changes in California to further
strengthen the independence of drivers and delivery people,
protect their ability to work flexibly, and clarify Uber’s role
as a marketplace.