UBER Q3 2021 Earnings

Call Details

• Call Title: Uber Technologies, Inc. Q3 2021 Earnings Call
• Date: November 4, 2021 at 9:00 PM UTC
• Management Team:
  • Balaji Krishnamurthy (Head of Investor Relations)
  • Dara Khosrowshahi (Chief Executive Officer)
  • Nelson Chai (Chief Financial Officer)

Call Summary

Financial Performance

• The company reached total company adjusted EBITDA profitability in Q3 2021.
• Eighteen of Uber's top 20 markets were adjusted EBITDA profitable in Q3 2021.
• U.S. and Canada mobility adjusted EBITDA margins expanded to more than 6% of gross bookings in Q3 2021.
• Four of Uber's top 10 markets were operating above 10% adjusted EBITDA margin in Q3 2021.
• The core Uber Eats restaurant delivery business was adjusted EBITDA profitable during Q3 2021.
• Food Delivery Commission caps and incremental UK worker classification costs combined represented a $150M to $200M drag to Q3 adjusted EBITDA.
• Equity-mark-to-market moves produced a $2B net headwind to GAAP net income in Q3 2021 after a $3.2B markdown of the DD stake and mark ups/monetizations of other stakes.

Guidance

• The company expects total company gross bookings of $25B to $26B for Q4 2021, representing year-over-year growth of 46% to 52%.
• The company expects total company adjusted EBITDA to be a profit between $25M and $75M for Q4 2021.
• Guidance for Q4 2021 includes contributions from Drizly and projected contributions from Transplace, which the company expects to close in Q4 2021.
• The Q4 outlook incorporates FX headwinds and the net effect of immaterial impacts to total company gross bookings and adjusted EBITDA.
• Nelson reiterated that the firm is being prudent given pandemic unpredictability while citing strong October trends as context for the Q4 outlook.
• The company stated it will continue to reinvest the vast majority of Uber Eats profits into new verticals expansion in Q4 2021.