Uber withdraws 2020 guidance

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

Update: This article was corrected to reflect that the guidance was for 2020, not an update that would include the fourth quarter adjusted EBITDA profitability target. Uber CEO Dara Khosrowshahi said earlier this year that the company planned to make an operating profit by the final quarter of 2020. That shouldn’t be confused with annual guidance.

Uber said Thursday it was withdrawing its 2020 guidance for gross bookings, adjusted net revenue and adjusted EBITDA, which were provided on February 6, 2020 during the company’s earnings call. The company’s previous 2020 guidance was gross bookings between $75 billion and $80 billion, adjusted net revenue $16 billion to $17 billion and an adjusted EBITDA loss of between $1.45 billion and $1.25 billion. Uber did not provide new guidance for 2020.

“Given the evolving nature of COVID-19 and the uncertainty it has caused for every industry in every part of the world, it is impossible to predict with precision the pandemic’s cumulative impact on our future financial results,” Uber said in a statement.

Uber also warned that it expected an impairment charge of between $1.9 billion and $2.2 billion because of declines in value on some of its minority equity investments. Uber has minority stakes in Didi, Grab, Yandex.Taxi and Zomato, according to its latest annual report. The one-time charge is not expected to impact Uber’s first-quarter adjusted net revenue, adjusted EBITDA, cash and cash equivalents or short-term investments, the company said.

Uber also used Thursday’s change in guidance to highlight initiatives it launched in response to the COVID-19 pandemic, including a financial assistance program for drivers and delivery people.

Uber said it plans to account for this program as Contra Revenue, which will likely reduce GAAP revenue by an estimated $17 million to $22 million in the first quarter and an estimated $60 million to $80 million in the second quarter. Uber will exclude the impact of certain COVID-19-specific expenses from Adjusted Net Revenue and from Adjusted EBITDA to “help investors assess the impact of COVID-19 on our financial position.”

The company has scheduled its first quarter earnings call for 1:30 pm PT May 7.