Uber(US:UBER)2025-05-07 20:07PART I - FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) Unaudited Q1 2025 financials show significant improvement, shifting from net loss to $1.776 billion net income, with 14% revenue growth Condensed Consolidated Balance Sheets As of March 31, 2025, total assets increased to $52.8 billion, liabilities to $29.9 billion, and stockholders' equity to $22.0 billion Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Dec 31, 2024 | Mar 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $5,893 | $5,132 | | Total current assets | $12,245 | $12,350 | | Total assets | $51,244 | $52,822 | | Total current liabilities | $11,476 | $12,113 | | Long-term debt, net | $8,347 | $8,350 | | Total liabilities | $28,768 | $29,917 | | Total stockholders' equity | $21,558 | $21,975 | Condensed Consolidated Statements of Operations Q1 2025 saw a significant turnaround to $1.776 billion net income from a prior year loss, driven by 14% revenue growth to $11.5 billion Statement of Operations Summary (in millions, except per share data) | Metric | Q1 2024 | Q1 2025 | | :--- | :--- | :--- | | Revenue | $10,131 | $11,533 | | Income from operations | $172 | $1,228 | | Other income (expense), net | $(678) | $262 | | Net income (loss) attributable to Uber | $(654) | $1,776 | | Diluted EPS | $(0.32) | $0.83 | Condensed Consolidated Statements of Cash Flows Net cash from operations significantly increased to $2.32 billion in Q1 2025, with $1.86 billion used in financing for stock repurchases Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2024 | Q1 2025 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,416 | $2,324 | | Net cash used in investing activities | $(242) | $(542) | | Net cash used in financing activities | $(100) | $(1,862) | | Net change in cash | $980 | $(10) | - The significant increase in cash used in financing activities was primarily driven by $1.785 billion in common stock repurchases in Q1 202523 Notes to Condensed Consolidated Financial Statements Notes detail accounting policies, M&A, share repurchases, and a $1.8 billion UK VAT dispute - On May 6, 2025, Uber agreed to acquire an 85% stake in Trendyol GO, a meal and grocery delivery business in Türkiye, for approximately $700 million in cash, with the deal expected to close in the second half of 202528 - The company's planned acquisition of Foodpanda Taiwan was prohibited by the Taiwan Fair Trade Commission in January 2025, resulting in a $236 million termination fee expense recorded in Q4 2024 and paid in April 202529 - During Q1 2025, the company repurchased 26.6 million shares of common stock for $1.8 billion. As of March 31, 2025, approximately $4.0 billion remained available under the Share Repurchase Program78 - Uber has received multiple VAT assessments from the UK's HMRC totaling approximately $1.8 billion related to its operating model from March 2022 to September 2024. The company has paid the assessments to appeal the decision and believes it will be successful115 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses strong Q1 2025 performance with 14% growth in Gross Bookings and Revenue, and 35% Adjusted EBITDA growth Financial and Operational Highlights Q1 2025 highlights robust growth: MAPCs up 14%, Trips up 18%, Gross Bookings up 14%, and Adjusted EBITDA up 35% Q1 2025 Key Financial and Operational Metrics (YoY Growth) | Metric | Q1 2024 | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | | MAPCs (millions) | 149 | 170 | 14% | | Trips (millions) | 2,572 | 3,036 | 18% | | Gross Bookings (billions) | $37.65 | $42.82 | 14% | | Revenue (billions) | $10.13 | $11.53 | 14% | | Income from operations (billions) | $0.17 | $1.23 | N/M | | Adjusted EBITDA (billions) | $1.38 | $1.87 | 35% | | Free cash flow (billions) | $1.36 | $2.25 | 66% | Results of Operations Q1 2025 revenue increased 14% to $11.5 billion due to higher trip volumes, with income from operations rising significantly due to lower legal accruals - Revenue increased by 14% to $11.5 billion, primarily due to a 14% increase in Gross Bookings driven by higher Mobility and Delivery trip volumes169 - General and Administrative expenses decreased by $552 million (46%) compared to Q1 2024, mainly due to a reduction in legal-related accruals and expenses174 - Other income (expense), net, swung from a $678 million expense in Q1 2024 to a $262 million income in Q1 2025, largely due to a $772 million positive change in unrealized gains/losses on equity securities like Didi, Aurora, and Grab177178179 Segment Results Mobility revenue grew 15% and Delivery revenue 18%, with strong Adjusted EBITDA growth, while Freight revenue declined 2% Segment Revenue (in millions) | Segment | Q1 2024 | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | | Mobility | $5,633 | $6,496 | 15% | | Delivery | $3,214 | $3,777 | 18% | | Freight | $1,284 | $1,260 | (2)% | | Total | $10,131 | $11,533 | 14% | Segment Adjusted EBITDA (in millions) | Segment | Q1 2024 | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | | Mobility | $1,479 | $1,753 | 19% | | Delivery | $528 | $763 | 45% | | Freight | $(21) | $(7) | 67% | | Total Segment Adjusted EBITDA | $1,986 | $2,509 | 26% | Liquidity and Capital Resources Strong liquidity maintained with $2.3 billion operating cash flow and $1.8 billion in stock repurchases under a $7.0 billion program - Net cash provided by operating activities was $2.3 billion for Q1 2025, a significant increase from $1.4 billion in Q1 2024209210 - In February 2024, the board authorized a $7.0 billion share repurchase program. In Q1 2025, the company repurchased $1.8 billion of its common stock, leaving approximately $4.0 billion available under the program as of March 31, 2025217219 - As of March 31, 2025, the company had received UK VAT assessments totaling approximately $1.8 billion, which it has paid to appeal. These payments are recorded as a receivable as the company expects to be successful in its appeal221222 Item 3. Quantitative and Qualitative Disclosures About Market Risk The company faces interest rate, investment, and foreign currency risks, with $9.1 billion in investments and $1.9 billion in derivative contracts - A hypothetical 100 basis point increase in interest rates would have decreased the fair value of the company's fixed-rate notes by $443 million as of March 31, 2025229 - As of March 31, 2025, the carrying value of investments was $9.1 billion, including equity method investments. These investments in public and privately-held entities may increase volatility in net income due to fair value changes232 - The company uses foreign currency derivative contracts to mitigate exchange risk, with a total notional amount of $1.9 billion outstanding as of March 31, 202545234 Item 4. Controls and Procedures Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level235 - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting237 PART II - OTHER INFORMATION Item 1. Legal Proceedings The company is involved in various legal actions, notably driver classification and state unemployment taxes, detailed in Note 9 - Information on material legal proceedings, including those concerning Driver Classification and State Unemployment Taxes, is incorporated by reference from Note 9 – Commitments and Contingencies241245 Item 1A. Risk Factors Key risks include driver reclassification, intense competition, maintaining profitability, safety incidents, regulatory compliance, and data breaches - The classification of Drivers as independent contractors is a primary risk, with ongoing legal challenges globally. A reclassification to employees would significantly increase expenses related to wages, benefits, and taxes, and fundamentally change the business model248253 - The company operates in highly competitive industries with low barriers to entry and low switching costs, facing well-capitalized competitors which may require continued spending on incentives and promotions, potentially impacting financial performance257265 - The company has a history of significant losses and an accumulated deficit of $18.9 billion as of March 31, 2025. Future profitability is not guaranteed as operating expenses are expected to increase with continued investment in growth and new offerings267 - The business is susceptible to security breaches, cyberattacks, and privacy incidents. Past events like the 2016 Breach have led to regulatory scrutiny, fines, and settlement costs, and future incidents could result in significant liability and reputational harm318321 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company repurchased 26.587 million shares for $1.8 billion in Q1 2025, with $3.95 billion remaining under the program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased (thousands) | Average Price Paid Per Share | | :--- | :--- | :--- | | January 2025 | 18,579 | $66.59 | | February 2025 | 4,266 | $67.46 | | March 2025 | 3,742 | $73.50 | | Total | 26,587 | N/A | - The share repurchase program was authorized by the board in February 2024 for up to $7.0 billion of outstanding common stock442 Item 5. Other Information There is no other information to report for this item during the quarter - None443 Item 6. Exhibits This section lists exhibits filed with the Form 10-Q, including required certifications and Interactive Data Files (XBRL)