[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Uber's unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2023, compared to the same periods in 2022, showing a significant turnaround to profitability in Q3 2023 with net income reaching $221 million and total assets growing to $35.9 billion Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Dec 31, 2022 | Sep 30, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $9,249 | $10,679 | | **Total Assets** | $32,109 | $35,949 | | **Total Current Liabilities** | $8,853 | $9,405 | | **Total Liabilities** | $23,605 | $25,430 | | **Total Equity** | $8,074 | $10,125 | Condensed Consolidated Statement of Operations Highlights (in millions) | Metric | Q3 2022 | Q3 2023 | 9 Months 2022 | 9 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $8,343 | $9,292 | $23,270 | $27,345 | | **Income (Loss) from Operations** | $(495) | $394 | $(1,690) | $458 | | **Net Income (Loss) Attributable to Uber** | $(1,206) | $221 | $(9,736) | $458 | Condensed Consolidated Statement of Cash Flows Highlights (in millions) | Metric | 9 Months 2022 | 9 Months 2023 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $886 | $2,762 | | **Net Cash Provided by (Used in) Investing Activities** | $132 | $(2,407) | | **Net Cash Provided by (Used in) Financing Activities** | $104 | $(141) | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures supporting the financial statements, including revenue recognition, segment performance, and significant legal and tax contingencies Revenue by Segment (in millions) | Segment | Q3 2022 | Q3 2023 | 9 Months 2022 | 9 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Mobility** | $3,822 | $5,071 | $9,893 | $14,295 | | **Delivery** | $2,770 | $2,935 | $7,970 | $9,085 | | **Freight** | $1,751 | $1,286 | $5,407 | $3,965 | | **Total Revenue** | **$8,343** | **$9,292** | **$23,270** | **$27,345** | Segment Adjusted EBITDA (in millions) | Segment | Q3 2022 | Q3 2023 | 9 Months 2022 | 9 Months 2023 | | :--- | :--- | :--- | :--- | :--- |\n| **Mobility** | $898 | $1,287 | $2,287 | $3,517 | | **Delivery** | $181 | $413 | $310 | $1,030 | | **Freight** | $1 | $(13) | $8 | $(50) | - The company is challenging a VAT assessment from UK tax authorities (HMRC) totaling **£493 million (approx. $622 million)**, which was paid in Q3 2023 to proceed with an appeal. The payment is recorded as a receivable as management believes the appeal will be successful[164](index=164&type=chunk)[165](index=165&type=chunk) - Legal challenges to driver classification as independent contractors are ongoing. The California Supreme Court granted a review of a lower court's decision that upheld Proposition 22, with a decision expected in **2024**. Similar lawsuits are active in Massachusetts and Switzerland[144](index=144&type=chunk)[145](index=145&type=chunk)[149](index=149&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for Q3 2023, highlighting a 15% YoY increase in Monthly Active Platform Consumers (MAPCs) to 142 million and a 21% rise in Gross Bookings to $35.3 billion, alongside achieving net income of $221 million and Adjusted EBITDA of $1.1 billion Q3 2023 Key Financial and Operational Highlights (YoY % Change) | Metric | Q3 2022 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Monthly Active Platform Consumers (MAPCs) | 124 million | 142 million | 15% | | Trips | 1,953 million | 2,441 million | 25% | | Gross Bookings | $29,119 million | $35,281 million | 21% | | Revenue | $8,343 million | $9,292 million | 11% | | Adjusted EBITDA | $516 million | $1,092 million | 112% | - The California Supreme Court's review of Proposition 22's constitutionality remains a key focus, with a decision expected in **2024**. Management notes that an adverse ruling requiring driver reclassification would **significantly increase expenses**[195](index=195&type=chunk)[197](index=197&type=chunk) - Net cash from operating activities for the first nine months of 2023 was **$2.8 billion**, which included a cash outflow of **approximately $622 million** for a disputed UK VAT assessment[293](index=293&type=chunk)[296](index=296&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) This subsection provides a detailed analysis of the consolidated statement of operations, showing Q3 2023 revenue increased 11% YoY to $9.3 billion, driven by a 21% increase in Gross Bookings, and achieving income from operations of $394 million - Sales and marketing expenses decreased by **$212 million (18%)** in Q3 2023 compared to Q3 2022, primarily due to business model changes that reclassified **$521 million** of consumer promotions as contra-revenue[235](index=235&type=chunk) - General and administrative expenses decreased by **$262 million (29%)** in Q3 2023, mainly due to a **$188 million** reduction in legal settlements and related expenses[241](index=241&type=chunk) - Other Income (Expense), net, improved from a **$535 million** expense in Q3 2022 to a **$52 million** expense in Q3 2023. This was largely due to smaller unrealized losses on equity securities, which were a **$96 million** loss in Q3 2023 versus a **$550 million** loss in Q3 2022[249](index=249&type=chunk)[250](index=250&type=chunk)[251](index=251&type=chunk) [Segment Results](index=45&type=section&id=Segment%20Results) This subsection analyzes the performance of Uber's three segments, showing strong growth in Mobility and Delivery, contrasted with a decline in the Freight segment due to a challenging market Q3 2023 Segment Performance vs. Q3 2022 (in millions) | Segment | Revenue | Revenue % Change | Adjusted EBITDA | Adjusted EBITDA % Change | | :--- | :--- | :--- | :--- | :--- | | **Mobility** | $5,071 | 33% | $1,287 | 43% | | **Delivery** | $2,935 | 6% | $413 | 128% | | **Freight** | $1,286 | (27)% | $(13) | N/M | [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2023, Uber had $4.4 billion in cash and cash equivalents, with net cash from operating activities significantly increasing to $2.8 billion for the first nine months of 2023, despite a $622 million payment for a disputed UK VAT assessment - Net cash provided by operating activities was **$2.8 billion** for the nine months ended Sep 30, 2023, compared to **$886 million** for the same period in 2022[295](index=295&type=chunk)[296](index=296&type=chunk) - Net cash used in investing activities was **$2.4 billion**, primarily due to **$5.9 billion** in purchases of marketable securities, partially offset by **$3.0 billion** in proceeds from sales and maturities[298](index=298&type=chunk) - The company paid **approximately $622 million (£493 million)** to UK tax authorities (HMRC) for a disputed VAT assessment, which decreased operating cash flow but is recorded as a receivable pending appeal[304](index=304&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details Uber's primary market risk exposures, including interest rate fluctuations on its floating-rate debt, investment volatility from its $9.1 billion in equity investments, and foreign currency risk from extensive international operations - A hypothetical **100 basis point** increase in interest rates would decrease the fair value of the company's fixed-rate notes by **$196 million** as of September 30, 2023[310](index=310&type=chunk) - The company holds **$9.1 billion** in investments as of September 30, 2023, including in **privately-held and public companies**, which exposes it to equity price risk and potential volatility in net income[314](index=314&type=chunk) - Uber is exposed to foreign currency risk as it transacts business globally. This risk is partially mitigated because revenues and expenses are often in the same local currencies[315](index=315&type=chunk) [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of September 30, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of September 30, 2023, the company's disclosure controls and procedures are **effective at a reasonable assurance level**[317](index=317&type=chunk) - There were **no material changes** to internal control over financial reporting during the third quarter of 2023[318](index=318&type=chunk) [PART II - OTHER INFORMATION](index=53&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference detailed legal proceedings from Note 12, covering driver classification and tax matters, and discloses other material proceedings such as class action lawsuits in Australia filed by taxi and hire-car industry participants - The company references Note 12 for details on material legal contingencies, including those related to Driver Classification and State Unemployment Taxes[322](index=322&type=chunk)[326](index=326&type=chunk) - A class action lawsuit has been filed in Australia by taxi and hire-car industry participants, alleging that Uber's operations from 2014 to 2017 were **unlawful and caused financial damages**. A trial is scheduled for **March 2024**[324](index=324&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) This section provides a comprehensive overview of significant risks, including potential driver reclassification, intense competition, a history of significant financial losses, dependence on user retention, security breaches, and a complex global regulatory landscape - The classification of drivers as independent contractors remains a **primary risk**, with ongoing legal challenges in the U.S. and abroad. An adverse outcome could force a **fundamental change to the business model and significantly increase operating expenses**[329](index=329&type=chunk)[334](index=334&type=chunk) - The company operates in **highly competitive industries with low barriers to entry** and faces pressure to offer incentives and promotions, which has **adversely affected and may continue to affect financial performance**[338](index=338&type=chunk)[344](index=344&type=chunk) - The company has a history of **significant losses** (**$32.3 billion** accumulated deficit as of Sep 30, 2023) and **may not achieve or maintain profitability** as it continues to invest in growth and new offerings[347](index=347&type=chunk) - The business is exposed to **security and data privacy breaches**, such as the 2016 incident affecting 57 million users. Future incidents could result in **significant liability, regulatory scrutiny, and reputational harm**[397](index=397&type=chunk)[399](index=399&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=90&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section discloses a minor unregistered sale of equity in July 2023, where the company issued 37 shares of common stock upon the conversion of Careem Convertible Notes, exempt from registration under Regulation S - In July 2023, Uber issued **37 shares** of common stock upon the conversion of Careem Convertible Notes at a price of **$55 per share**. The sale was exempt from registration under Regulation S[516](index=516&type=chunk) [Item 5. Other Information](index=90&type=section&id=Item%205.%20Other%20Information) This section reports that on August 24, 2023, CFO Nelson Chai entered into a pre-arranged Rule 10b5-1 stock trading plan for the potential sale of up to 200,000 shares of Uber common stock between November 2023 and August 2024 - CFO Nelson Chai entered into a **Rule 10b5-1 trading plan** on August 24, 2023, for the potential sale of **up to 200,000 shares** of common stock[517](index=517&type=chunk) [Item 6. Exhibits](index=90&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including corporate governance documents and required certifications from the Principal Executive and Financial Officers - The Exhibit Index lists all documents filed with the report, including required CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906[518](index=518&type=chunk)[520](index=520&type=chunk) [Signatures](index=92&type=section&id=Signatures) The report is formally signed and authorized by the company's principal executive and financial officers - The Form 10-Q was signed on **November 7, 2023**, by Dara Khosrowshahi, Chief Executive Officer, and Nelson Chai, Chief Financial Officer[526](index=526&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________ FORM 10-Q ____________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_____ to _____ Commission File Number: 001-38902 _____________________ ...

Uber Technologies, Inc. (NYSE:UBER) Q2 2023 Earnings Conference Call August 1, 2023 8:00 AM ET Company Participants Alax Wang - Head of Investor Relations Dara Khosrowshahi - Chief Executive Officer Nelson Chai - Chief Financial Officer Conference Call Participants Brian Nowak - Morgan Stanley Justin Post - Bank of America Mark Mahaney - Evercore ISI Ross Sandler - Barclays Doug Anmuth - JPMorgan Eric Sheridan - Goldman Sachs Deepak Mathivanan - Wolfe Research Nikhil Devnani - Bernstein Lloyd Walmsley - UBS ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________ FORM 10-Q ____________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_____ to _____ Commission File Number: 001-38902 ____________________ ...

Uber Technologies, Inc. (NYSE:UBER) Q1 2023 Earnings Conference Call May 2, 2023 8:00 AM ET Company Participants Balaji Krishnamurthy - Head, Investor Relations Dara Khosrowshahi - Chief Executive Officer Nelson Chai - Chief Financial Officer Conference Call Participants Doug Anmuth - JPMorgan Ross Sandler - Barclays Brian Nowak - Morgan Stanley Eric Sheridan - Goldman Sachs Justin Post - Bank of America Lloyd Walmsley - UBS Mark Mahaney - Evercore Deepak Mathivanan - Wolfe Research John Colantuoni - Jef ...

Summary of Uber Technologies, Inc. Conference Call Company Overview - **Company**: Uber Technologies, Inc. (NYSE: UBER) - **Event**: Morgan Stanley Technology, Media & Telecom Conference - **Date**: March 6, 2022 Key Points Industry and Market Dynamics - **Cost of Capital**: The increase in the cost of capital has led competitors to reduce spending and adopt a more disciplined approach to return on investments [4][5] - **Market Position**: Uber has gained category leadership in 8 out of the top 10 markets for mobility and 7 out of the top 10 for delivery, with significant margin improvements [6][7] Financial Performance - **Profitability**: The delivery business has shown a significant improvement in margins, with incremental EBITDA as a percentage of gross bookings improving by 7% [7][8] - **Cost Efficiency**: The cost per transaction for delivery improved by 20% year-on-year, contributing positively to the bottom line [8] Growth Drivers - **Driver Supply**: The growth in driver supply is crucial, with a 35% increase in drivers in the U.S. and a 30% increase globally [12] - **New Customer Acquisition**: Less than 30% of adults in developed markets have used Uber, indicating a significant opportunity for new customer acquisition [14][15] Product Innovations - **Upfront Fare**: The introduction of upfront fare and destination has improved marketplace throughput by approximately 4% [22] - **Multi-Product Offering**: About 45% of gross bookings come from users who utilize multiple products, indicating strong cross-platform engagement [23][24] Advertising Business - **Growth Potential**: The advertising business has reached a $500 million annual run rate, with significant room for growth as only 25% of merchants participate in the auction market [41][42] Regulatory Environment - **Prop 22**: The outcome of the Prop 22 decision is expected to be appealed, with Uber optimistic about retaining the will of the people and supporting driver independence [45] - **New York Regulations**: New York delivery represents about 2% of Uber's overall volume, and the company is prepared to adjust its business model based on regulatory outcomes [46] Cloud Migration - **Cost Savings**: Transitioning to cloud services is expected to drive significant savings in operating costs and improve free cash flow generation [38][39] Competitive Landscape - **Insurance Costs**: Uber has managed to keep insurance costs lower than competitors, which has provided a competitive advantage [34][35] Additional Insights - **Long-Term Strategy**: Uber's focus on supply and driver engagement is seen as a key to long-term growth, with a capital allocation framework guiding investments in lower-margin geographies [31][32] - **Technological Advancements**: The use of machine learning and AI is expected to enhance multi-product usage and improve customer engagement [24][26] This summary encapsulates the essential insights from the conference call, highlighting Uber's strategic positioning, financial performance, growth opportunities, and challenges within the regulatory landscape.

Legal and Regulatory Challenges - In Washington State, a new law has been enacted that guarantees minimum earnings, injury protection, and paid sick leave for rideshare drivers[68]. - The company is involved in numerous legal proceedings globally regarding the classification of drivers, which could significantly impact its business model and financial condition[71]. - The company has incurred significant losses since inception and may continue to do so due to substantial increases in operating expenses[90]. - The company is under investigation by the DOJ and other agencies regarding its business practices, including fees and pricing, which could lead to significant fines or operational changes[212]. - The company is actively challenging laws and regulations that limit its operations, particularly in ridesharing services, and is lobbying against similar restrictions in various jurisdictions[198]. - Regulatory changes in jurisdictions such as New York City and Barcelona have imposed minimum pay standards and operational restrictions, negatively affecting financial performance[194]. - The company may incur significant costs defending its business model against regulatory challenges, which could adversely affect revenue and growth[196]. - The company is subject to extensive government regulation regarding payment and financial services, with its subsidiary in the Netherlands authorized as an electronic money institution[205]. Financial Performance and Risks - The company has incurred operating losses of $4.9 billion, $3.8 billion, and $1.8 billion for the years ended December 31, 2020, 2021, and 2022, respectively, with an accumulated deficit of $32.8 billion as of December 31, 2022[90]. - The company expects operating expenses to increase significantly in the foreseeable future, impacting profitability[90]. - The company may require additional capital to support growth, which might not be available on reasonable terms or at all[70]. - The company may experience significant fluctuations in operating results, which could adversely affect profitability and investor value[124]. - The company has total outstanding indebtedness of $9.4 billion, with an additional $152 million of Careem Convertible Notes subject to future issuance[173]. - The company may face increased operating costs due to rising interchange and processing fees from payment providers, which could adversely affect its financial condition[165]. - The company is subject to tax audits in multiple jurisdictions, which could result in additional tax liabilities and adversely affect its financial results[179]. - The company may incur additional costs if exclusive-forum provisions in its amended certificate of incorporation are found unenforceable in other jurisdictions[251]. Competition and Market Dynamics - The mobility, delivery, and logistics industries are highly competitive, with low barriers to entry and well-capitalized competitors in nearly every major geographic region[80]. - The company anticipates that many competitors will continue to be highly capitalized, which may allow them to lower prices and attract users away from the company's platform[88]. - Significant competition in large metropolitan areas has led to increased driver incentives and consumer discounts, impacting financial results[127]. - The company has lowered fares and service fees in the past to remain competitive, which has adversely affected financial performance[87]. Technology and Data Security - The company faces risks related to data privacy and security breaches, which could harm its reputation and operating results[70]. - Security breaches could lead to significant liabilities and harm the company's brand, with past incidents resulting in unauthorized access to sensitive data[139]. - Cyberattacks have become more prevalent, posing risks to the company's information technology systems and potentially harming its reputation and operating results[142]. - The company is investing in improving its technology and network infrastructure to support growth, which requires substantial financial and operational resources[107]. Operational Challenges - The company has experienced driver supply constraints in most geographic markets, which may necessitate increased driver incentives and consumer discounts[91]. - The company has faced increased regulatory scrutiny globally due to past compliance failures, which may continue to negatively impact its business and financial condition[103]. - The company faces operational and compliance challenges in international markets, which include adapting to local laws and regulations, and competition from local services[117]. - The company has experienced increased regulatory scrutiny globally due to past compliance failures, which may continue to negatively impact its business and financial condition[103]. Growth and Strategic Initiatives - The company has partnered with Arizona State University, enrolling nearly 5,000 drivers and their family members in undergraduate degree programs since 2018[68]. - The company is making substantial investments in new offerings and technologies, which are inherently risky and may not yield expected benefits[70]. - The company has made substantial investments in new offerings and technologies, including the acquisition of Cornershop for grocery delivery and The Drizly Group for alcohol delivery, aiming to expand its Delivery offering[114]. - The company’s growth strategy includes divesting certain business lines and partnering with local companies, which exposes it to risks associated with minority ownership[119]. Human Resources and Management - The company has implemented several workforce reductions in response to the COVID-19 pandemic, which may affect employee morale and its ability to attract new talent[106]. - The company faces challenges in attracting and retaining high-quality personnel, with historical culture and workplace practices contributing to significant attrition[133]. - Future leadership transitions may disrupt business operations and increase employee turnover, impacting the company's growth and operating results[134]. - The company relies on key personnel, including the CEO, and any failure to retain these individuals could harm business performance[135]. Environmental and Social Responsibility - Climate-related commitments include achieving 100% renewable electricity for U.S. offices by 2025 and net zero emissions from corporate operations by 2030[153]. - Climate change policies, such as California's regulation for zero-emission vehicles, may impact Driver supply and operational costs[152]. Payment and Transaction Risks - The company relies on a single background-check provider in certain jurisdictions, which poses risks to onboarding new drivers[96]. - The company is subject to regulatory risks regarding cash payments in various jurisdictions, which could lead to fines or operational suspensions[148]. - The platform's performance is dependent on the reliability of internet and mobile infrastructures, with potential disruptions affecting user access[161]. - The company relies on third parties for open marketplaces like the Apple App Store and Google Play, which are critical for distributing its platform and offerings[163].

Financial Data and Key Metrics - Gross bookings increased by 26% year-on-year on a constant currency basis [8] - Adjusted EBITDA reached $665 million, exceeding the high-end of guidance for the sixth consecutive quarter [8] - Incremental adjusted EBITDA margin was 12% [8] - The company achieved 2 billion quarterly trips, a new milestone [9] - Mobility consumer base exceeded 100 million for the first time [9] - Over 5.4 million people earned on Uber globally, an all-time high [9] Business Line Data and Key Metrics - Uber One membership program grew to over 12 million members, nearly doubling in 2022 [15] - Members spend 4.1 times more monthly than non-members [16] - Member retention is 15% higher than non-member retention [16] - Globally, 25% of gross bookings come from members, with 40% of Delivery gross bookings in the U.S. coming from members [17] - Delivery incremental margins exceeded 20% in 2022, driven by marketplace efficiency, technology gains, and advertising [28][29] Market Data and Key Metrics - Mobility trip growth is accelerating, and Delivery remains resilient despite macroeconomic uncertainty [10] - The company is expanding upfront fare and destination technology globally, with a 4% increase in conversion rates [37][38] - Reserve, a new Mobility product, accounted for $2 billion in gross bookings and is growing at 100% year-on-year [43] - The Ads business reached a $500 million annual run rate, with 80% year-on-year growth in active advertisers [59] Company Strategy and Industry Competition - The company is focused on leveraging its platform advantage through advertising and membership programs [9] - Uber One is seen as a key moat, with active efforts to push adoption and innovate benefits [15][16] - The company is committed to achieving GAAP operating profit in 2023, having already achieved EBITDA profitability in 2021 and free cash flow positivity in 2022 [23][24] - Competitors are pulling back from unsustainable spending, giving Uber an advantage in the Delivery market [86] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's prospects despite macroeconomic uncertainty, citing strong momentum entering 2023 [10] - The reopening of economies and the shift from product to service spending are seen as tailwinds for the business [34] - The company expects to continue outgrowing the Delivery category, driven by platform advantages, membership, and advertising [88] Other Important Information - The company reduced costs by over $1 billion in 2020, including shutting down businesses and reducing headcount by 20% [18] - Headcount is expected to remain relatively flat in 2023, with selective hiring in tax and Delivery sales [19] - Insurance costs remain a challenge, with no significant progress in reducing costs per trip [49][54] Summary of Q&A Session Question: Uber One's growth strategy and cost efficiency [14] - Uber One is actively promoted across Delivery and Mobility services, with significant growth in membership and retention [15][16] - The company has been focused on cost efficiency since 2020, achieving EBITDA profitability and free cash flow positivity [22][23] Question: Frequency of trips and Delivery incremental margins [26][27] - Frequency of trips is driven by membership growth, platform cross-promotion, new products, and the macro environment [31][32][33][34] - Delivery incremental margins are supported by marketplace efficiency, technology gains, and advertising [28][29] Question: Impact of upfront fare and destination technology [37] - The technology has been a significant release, improving marketplace throughput and reducing cancellations [38][39] Question: New Mobility products and global rollout of upfront fares [42] - Reserve is the most impactful new Mobility product, with significant growth potential [43] - Upfront fares and destinations are expected to be rolled out globally by the end of 2023 [55] Question: FX impact and cost issues [47] - FX has improved, but the company remains focused on achieving GAAP operating profit in 2023 [48] - Insurance costs remain a challenge, with no significant progress in reducing costs per trip [49][54] Question: Delivery margins and advertising growth [56] - Delivery margins are driven by marketplace efficiency, technology, and advertising [57] - The Ads business is growing rapidly, with significant upside potential [59][60] Question: User penetration and stock-based compensation [65][66] - User penetration in the U.S. is lagging on the West Coast but recovering elsewhere [67][68] - Stock-based compensation will be managed judiciously, with a focus on GAAP operating profit [69][70] Question: Uber One profitability and driver supply [74][75] - Uber One members become profitable in their second year, with significant benefits to merchants and advertisers [80][81] - Driver supply is healthy, with inflation driving more people to earn on the platform [77][78] Question: Delivery growth and competitive dynamics [85] - Delivery growth is driven by category adoption, platform advantages, and advertising [86][87] Question: Mobility growth and Freight performance [91] - Mobility growth is supported by shared gains, driver supply, and technology investments [92][93] - Freight performance lagged in Q4 due to industry cyclicality, but the business remains resilient [97][98] Question: Promotional spending efficiency and growth ambitions [101] - The company has been efficient with promotional spending but may strategically invest in growth areas [102][103] - Marketing investments will be targeted to drive growth in strategic products and geographies [105][106]

Financial Performance - Monthly Active Platform Consumers (MAPCs) increased to 124 million, a 14% growth year-over-year[204] - Gross Bookings reached $29.1 billion, representing a 32% increase on a constant currency basis compared to the same period in 2021[205] - Revenue was $8.3 billion, up 72% year-over-year, driven by a $1.3 billion increase in the Freight business due to the acquisition of Transplace[206] - Adjusted EBITDA was $516 million, an increase of $508 million compared to the same period in 2021[208] - The net loss attributable to Uber Technologies, Inc. was $1.2 billion, including a $550 million unrealized loss on debt and equity securities[207] - Total revenue for the three months ended September 30, 2022, was $8,343 million, a 72% increase from $4,845 million in the same period in 2021[272] - Net loss attributable to Uber Technologies, Inc. for the nine months ended September 30, 2022, was $9.7 billion, a decrease from $1.4 billion in the same period of 2021[303] - Free cash flow for the nine months ended September 30, 2022, was $693 million, a turnaround from a negative $556 million in 2021[305] Segment Performance - Mobility Gross Bookings grew 45% year-over-year on a constant currency basis, primarily due to increased Trip volumes[205] - Mobility segment revenue increased by 73% to $3,822 million for the three months ended September 30, 2022, compared to $2,205 million in the same period in 2021[272] - Delivery revenue for the three months ended September 30, 2022, increased by $532 million, or 24%, with Adjusted EBITDA growing by $193 million[279] - Freight segment revenue increased significantly to $1,751 million for the three months ended September 30, 2022, compared to $402 million in the same period in 2021[272] - For the nine months ended September 30, 2022, Mobility revenue increased by $5.2 billion, or 112%, and Adjusted EBITDA profit increased by $1.3 billion, or 124%[277] - For the nine months ended September 30, 2022, Delivery revenue increased by $2.0 billion, or 34%, and Adjusted EBITDA grew by $683 million[281] - For the nine months ended September 30, 2022, Freight revenue increased by $4.4 billion, and Adjusted EBITDA grew by $113 million[285] Expenses and Costs - Cost of revenue, exclusive of depreciation and amortization, for the three months ended September 30, 2022, increased by $2.7 billion, or 112%, mainly due to a $898 million increase in Freight Carrier payments from the Transplace acquisition[238] - Operations and support expenses for the three months ended September 30, 2022, increased by $142 million, or 30%, primarily due to a $107 million increase in employee headcount costs[241] - General and administrative expenses increased by $283 million, or 45%, to $908 million for the three months ended September 30, 2022, compared to $625 million in the same period in 2021[250] - Sales and marketing expenses decreased by $15 million, or 1%, to $1,153 million for the three months ended September 30, 2022, compared to $1,168 million in the same period in 2021[244] - Research and development expenses increased by $267 million, or 54%, to $760 million for the three months ended September 30, 2022, compared to $493 million in the same period in 2021[247] - Depreciation and amortization expenses are projected to increase as the company continues to build out its network infrastructure[226] Cash Flow and Liquidity - The company ended the quarter with $4.9 billion in unrestricted cash and cash equivalents[208] - Net cash provided by operating activities for the nine months ended September 30, 2022, was $886 million, compared to a cash outflow of $338 million in 2021[307] - The company held $4.9 billion in cash and cash equivalents, with $2.9 billion held by foreign subsidiaries[314] - The company expects a cash outflow of approximately GBP 615 million in Q4 2022 related to the resolution of outstanding VAT claims[315] Investments and Risks - The carrying value of investments as of September 30, 2022, was $4.5 billion, including equity method investments[324] - The company is exposed to foreign currency risks due to international revenue and expenses denominated in currencies other than the U.S. dollar[325] - A hypothetical 100 basis point increase in interest rates would decrease the fair value of the company's fixed rate notes by $239 million as of September 30, 2022[321] - The company has experienced fluctuations in net income/(loss) due to transaction gains or losses related to remeasurement of asset and liability balances in foreign currencies[326] - Foreign currency rates may impact the value of the company's equity method investment in the Yandex.Taxi joint venture[326] - The company does not currently use derivatives or other financial instruments to hedge foreign currency exchange risk, but may consider this in the future[326] Regulatory and Compliance - The classification of Drivers as employees or workers could lead to significant additional expenses and impact Driver supply[199] - The company has incurred additional expenses to comply with Proposition 22, but does not expect these changes to materially impact its business[194]

Uber Technologies, Inc. (NYSE:UBER) Q3 2022 Earnings Conference Call November 1, 2022 8:00 AM ET Company Participants Balaji Krishnamurthy – Head-Investor Relations Dara Khosrowshahi – Chief Executive Officer Nelson Chai – Chief Financial Officer Conference Call Participants Brian Nowak – Morgan Stanley Eric Sheridan – Goldman Sachs Justin Post – Bank of America Doug Anmuth – J.P. Morgan Ross Sandler – Barclays Lloyd Walmsley – UBS Deepak Mathivanan – Wolfe Research Mark Mahaney – Evercore ISI Ron Josey – C ...