Uber Withdraws 2020 Financial Guidance Amid COVID-19 Uncertainty
Uber officially withdraws its 2020 financial guidance due to the unpredictable impact of the COVID-19 pandemic. The company also warns of a significant impairment charge related to its minority equity investments.
Uber withdraws its 2020 financial guidance for gross bookings, adjusted net revenue, and adjusted EBITDA due to the unpredictable impact of the COVID-19 pandemic. The company originally provides this guidance in February, projecting gross bookings between $75 billion and $80 billion and an adjusted EBITDA loss of up to $1.45 billion. Uber states that the global uncertainty makes it impossible to predict the pandemic's cumulative impact on future financial results, and it does not offer new guidance to replace the withdrawn figures.
The ride-hailing giant also warns of a one-time impairment charge between $1.9 billion and $2.2 billion as the value of its minority equity investments declines. These stakes include investments in major global companies like Didi, Grab, Yandex.Taxi, and Zomato. Despite the massive charge, Uber clarifies that it does not affect its first-quarter adjusted net revenue, adjusted EBITDA, or cash equivalents.
Additionally, Uber highlights its financial assistance program for drivers and delivery workers launched in response to the global crisis. The company plans to account for this program as Contra Revenue, which reduces its GAAP revenue by an estimated $17 million to $22 million in the first quarter and $60 million to $80 million in the second quarter. Uber excludes these specific COVID-19 expenses from its Adjusted Net Revenue and Adjusted EBITDA to help investors better understand the core business impact.