Uber(UBER) - 2022 Q3 - Quarterly Report

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]