Uber Suspends 2020 Earnings Target Due to Coronavirus

Uber Suspends 2020 Earnings Target Due to Coronavirus

Uber is withdrawing its annual guidance for 2020 due to the COVID-19 pandemic.

Uber Suspends 2020 Earnings Target Due to Coronavirus

Uber stated Thursday it was withdrawing its 2020 guidance for gross bookings, adjusted net revenue, and adjusted EBITDA, which were supplied on February 6 during the company’s earnings call. The corporate’s previous 2020 steering was gross bookings between $75 billion and $80 billion, adjusted net income $16 billion to $17 billion, and an adjusted EBITDA loss of between $1.45 billion and $1.25 billion.

Uber additionally notified that it expected an impairment cost of between $1.9 billion and $2.2 billion due to declines in value on some of its minority equity investments. Uber has minority stakes in Didi, Grab, Yandex. Taxi and Zomato,  based on its newest annual report.

The one-time cost is not anticipated to impact Uber’s first-quarter adjusted net revenue, adjusted EBITDA, and cash equivalents or short-time period investments, the company stated.

Uber also used Thursday’s change in guidance to spotlight initiatives it launched in response to the COVID-19 pandemic, along with a financial help program for drivers and delivery individuals.

Uber stated it plans to account for this program as Contra Revenue, which can likely scale back GAAP revenue by an estimated $17 million to $22 million in Q1 and an estimated $60 million to $80 million in Q2.