Uber Technologies Down After Pandemic Hurts Earnings | Financial Buzz

Uber Technologies Down After Pandemic Hurts Earnings

Uber Technologies, Inc. (NYSE: UBER) stock fell more than 2% after the Company announced financial results for the second quarter ended June 30, 2020.

For the quarter Uber reported that gross Bookings declined to $10.2 billion, down 35% year-over-year, or 32% on a constant currency basis, with Mobility Gross Bookings declining 73% and Delivery Gross Bookings growing 113% year-over-year, each on a constant currency basis. Revenues declined 29% year-over-year, or 27% on a constant currency basis. Mobility Revenue declined 67% year-over-year and Delivery Revenue grew 103% year-over-year. Adjusted Net Revenue (“ANR”) declined 33% year-over-year, Mobility ANR declined 66% year-over-year and Delivery ANR grew 162% year-over-year.

COVID-19 response initiatives had an impact on GAAP net loss of $48 million including an impact on GAAP revenue of $6 million and an impact on GAAP cost of revenue of $22 million and an impact on total operating expenses of $20 million. 

“Our team continues to move at Uber speed to respond to the pandemics impact on our communities and on our business, leading our industry forward with new products and safety technologies, and harnessing the strong tailwinds driving exceptional growth in Delivery, with Gross Bookings growing 122 percent year-over-year excluding exited markets 2 ,” said Dara Khosrowshahi, CEO. “We are fortunate to have both a global footprint and such a natural hedge across our two core segments: as some people stay closer to home, more people are ordering from Uber Eats than ever before.”

In the meantime, Uber has contributed to Covid-19 response efforts, by commiting $45 million to support front-line workers, drivers and delivery people, and communities in need, such as survivors of domestic violence and people with compromised immune systems who were unable to receive their medication. The Restaurant Contribution feature that we built into the Uber Eats app, allowing customers to add a small donation to the restaurant on top of their order, has put more than $17 million directly into the bank accounts of restaurants around the world.