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 ...

Uber Technologies, Inc. Q3 2022 Earnings Supplemental Data Q3 2022 Earnings November 1, 2022 Non-GAAP Financial Measures Disclosure To supplement our financial information, which is prepared and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, we use the following non-GAAP financial measures: Adjusted EBITDA; Non-GAAP Costs and Operating Expenses; Revenue Excluding UK Accrual; Mobility Revenue Excluding UK Accrual; Delivery business model change ...

Summary of Uber Technologies, Inc. Conference Call Company Overview - **Company**: Uber Technologies, Inc. (NYSE: UBER) [1] - **Event**: Goldman Sachs Communacopia + Technology Conference 2022 [1] Key Industry Insights Pandemic Recovery and Business Position - Uber emerged from the pandemic in a stronger position, pivoting from mobility to delivery, with both segments now at scale and driving profitability [5][6] - The company has exited non-core businesses, focusing on core operations and achieving higher cost discipline, resulting in 12% incremental EBITDA margins, exceeding the target of 7% [5] Demand Trends in Mobility - Demand for mobility is returning to pre-pandemic levels, with trip volumes in August consistent with July and a Labor Day bump aligning with 2019 trends [10][11] - The company expects strong volume growth in Q4, driven by increased consumer outings and back-to-office trends [11] Growth Drivers - Future growth is expected to come from: - **Core UberX Business**: 50% of growth driven by increased services spending [13] - **New Product Innovations**: 35% of growth from new offerings like hailable vehicles, enterprise services, and segmented products [14][15] - **Geographic Expansion**: 15% of growth from markets with lower penetration, such as Germany, Spain, and Japan [16] Driver Supply and Competitive Environment - The driver supply environment is constructive, with active drivers nearing pre-pandemic highs, although still undersupplied by 5% to 10% [18] - Innovations like modular onboarding and upfront pricing have improved driver activation and satisfaction, enhancing competitive positioning [19][20][23] - The competitive landscape is favorable, with competitors facing capital constraints and Uber maintaining a strong market position [25][26] Delivery Business Insights Performance and Growth - Delivery gross bookings grew by 12% on a constant currency basis, with sticky consumer habits observed post-pandemic [30] - Delivery margins are benefiting from marketplace densification and cost per transaction improvements [31][32] New Vertical Opportunities - The grocery category is identified as a significant growth opportunity, with integration of Cornershop functionality into the Uber Eats app [38][39] - New verticals, including grocery, pharmacy, and alcohol delivery, are showing strong growth and profitability [33][34] Advertising Revenue - The advertising business is on track to reach a $1 billion run rate by 2024, currently at a $350 million run rate [32] Strategic Initiatives Super App Strategy - Uber is early in its super app strategy, aiming to increase consumer utility by encouraging multi-product usage and membership [44][46] - Membership programs are showing strong retention and spending advantages, with members spending 2.5 times more than non-members [46] Capital Allocation and Profitability Goals - Uber aims for a top-line growth rate of 22% to 25% and a 7% incremental EBITDA margin, with a focus on disciplined capital allocation [57][58] - The company plans to utilize free cash flow for stock buybacks and investments, targeting investment-grade status for its debt [62] Future Outlook - Uber aims to be an everyday utility for consumers, expanding its capabilities in on-demand delivery and fulfillment services [65][66] - The company is focused on optimizing its technology and marketplace to enhance operational efficiency and customer experience [66]