Uber Technologies, Inc.

Good afternoon. My name is Christine, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Uber Technologies Inc. Q1 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. Thank you. Kent Schofield, Head of Investor Relations. You may begin your conference.

Thank you, Christine, and thank you for joining us today. And welcome to Uber Technologies Q1 2019 earnings presentation. On the call today, we have Dara Khosrowshahi, CEO, Nelson Che, CFO, and this is Kent Schofield, Head of Investor Relations. During this call, we will present both GAAP and non-GAAP financial measures. Additional disclosures regarding these non-GAAP measures, including a reconciliation of GAAP to non-GAAP measures, is included in the press release, supplemental slides, and our filings with the SEC, each of which is posted to investor.uber.com. I will remind you that these numbers are unaudited and may be subject to change. Certain statements in this presentation and on this call may be deemed to be forward-looking statements. Such statements can be identified by terms such as believe, expect, intend, and may. You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statements we make today. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued today, as well as risks and uncertainties. including then sections under the captions risk factors and management's discussion and analysis of financial condition and result of operations and our final perspectives filed with the SEC in connection with our IPO on May 13th, 2019. Following prepared remarks today, we will open the call to questions. With that, let me hand it over to Dara. Camp, thank you.

Welcome everyone to our first earnings conference call as a public company. We're very excited. Our IPO earlier this month was an important moment for Uber. It was the culmination of nearly a decade of work to build a network, products, technology, and operational excellence that power our global platform today. It's also the result of more recent changes, including our adoption of world-class governance standards, an update to our cultural values, and a shift towards long-term partnership with cities, regulators, and the millions of people and organizations who use their technology to earn income or grow their business. every day. While I'm proud of what we've achieved with IPO, I've told our team that it is ultimately just one moment in a much longer journey. We have an even greater duty to create long-term value for our investors, our customers, our employees, and our many stakeholders. We'll do this by making the Uber platform a one-stop shop for the movement of people and powering local commerce around the world at a massive scale. over 700 cities and 63 countries. Today, we're pleased to report another quarter of strong growth, demonstrating the continued success of our platform strategy. Q1-19 growth bookings grew 34% year-on-year on a reported basis and 41% year-on-year on a constant currency basis and excluding divestitures, producing an annualized run rate of $59 billion. Our monthly active platform consumers, or MAPCs, grew an impressive 33% year-on-year to 93 million. However, those 93 million MAPCs represent only 2% of the population in the 63 countries where we operate our ride-sharing products, and an even smaller percent of the population in those countries where they use Uber Eats. We believe our platform model allows us to acquire, engage, and retain customers with a cost as well as efficiency and effectiveness advantage over our rivals, typically monoline competitors. These efforts are just getting started as we penetrate into a $12 trillion total addressable market. Now, on to Q1 2019 platform updates. In ride sharing, Q1 gross bookings grew 22% year-on-year and 29% on a constant currency basis and excluding some divestitures. Some ride sharing highlights. Part of our commitment to increasing driver engagement and satisfaction, we launched Uber Pro, our driver rewards program in 15 cities in Q1, and now have expanded across the U.S. Among other things, we're helping drivers to lower their operating costs with gas and car maintenance discounts. We're also providing access to tuition-free college education at Arizona State University Online for qualifying drivers, or if they choose, a member of their family. Meanwhile, we're growing our partnerships with Hertz, FAIR, Localiza, and other vehicle suppliers to enable more drivers to use Uber if they don't have access to a vehicle, which is one of the biggest inhibitors for potential drivers to earn on our platform. For riders, we've launched Uber Rewards across the U.S. to recognize and reward our most loyal consumers. Leveraging the breadth of our platform, consumers can earn points using ride-sharing and eats towards benefits that make their everyday Uber experience even better. including price protection for specific routes, priority pickups at airports, and free EATS deliveries. Consumer satisfaction with Uber rewards has been over 85%. In RideCherry Marketplace Tech, we implemented a new dispatch optimization model that's able to use a 10 times denser graph that allows us to dramatically increase the potential rider and driver pairs to enable lower ETAs. In the U.S., our gross bookings category position on a dollar basis has been stable at 70 plus or minus 2 percentage points versus our largest competitor since Q1 of 18. In Q1 of 19 specifically, our category position was stable at 69%. We've more recently seen signs of competition becoming more focused on brand and product versus incentives, which is a trend that has continued into Q2 19, and we think which is a healthy trend for the business. In Latin America, our category position has been stable since the beginning of the year, and we've seen a stabilization of competitive intensity as well. We continue to maintain what we estimate to be a large per-trip efficiency advantage over our largest competitor in the region, and we've improved our competitive response to new rollouts by other players in the market. We're also in the early stages of rolling out EATS in the region, which will allow us to uniquely capitalize on the synergies between the two offerings as we're the only company in LATAM that offers both rides and eats. Now, onto our eats business, which grew 109% year-on-year during Q1 to 3.1 billion in gross bookings and at 117% on a constant currency basis, excluding divestitures. This growth is impressive on its own, but even more so that Q1-19 represents year-over-year growth over Q1 of last year, which is a quarter at which we believe Eats became the largest online meal delivery player outside of China. Our 2018 goal of improved restaurant selection was achieved with 220,000 restaurants on the platform at the end of 2018, and we continue to add selection at an aggressive pace. We'll continue to improve restaurant selection, including the launch of self-service sign-up portals, as well as their new aggregator business model that allows restaurants to use their own couriers to deliver to consumers. In the U.S., we continue to see great expansion of our platform into suburban markets that are oftentimes earlier in their engagement cycle with ride-sharing. We have a strong category position in Japan, which we think will be a spearhead for... Sorry, we have a strong category position in Eats in Japan, which we think will be a spearhead for a ride-sharing business, and we continue to make category position Games, and EMEA. Last and certainly not least, we expanded our Starbucks partnership to seven large U.S. cities and now have begun international pilots. Now, a bit about our other best segment, which grew Q1 gross bookings by 230% year-on-year to $132 million. Uber Freight continued to make rapid progress in building our logistics on-demand platform throughout Q1, with growth for the quarter exceeding 200% year-on-year. More and more large global enterprise shippers are beginning to benefit from Uber Freight's vast carrier network, transparency, real-time pricing, and more, with many notable new customers joining Q1, such as CVS, Cisco, Petco, and Heineken. To better support our enterprise shippers and further integrate into their supply chains, we've announced a strategic partnership with SAP, providing customers seamless access to the Uber Freight network, enabling real-time booking, and on-demand freight capacity, 24 by 7. Now, on to new mobility. The quarter began with the release of a new version of the Jump e-bike in January, featuring next-generation hardware that improves connectivity, is more durable, and has a swappable battery. New mobility growth bookings grew strongly quarter over quarter as we carried out continued expansion across the U.S. for both bikes and scooters, and our first movement into the European market, a focus that has continued in Q2. We also launched our first public transit product in partnership with the city of Denver, which has shown early positive results, as well as furthering the expansion of Uber's platform of non-rod-sharing products. Lastly, on our ATG group, Toyota, Denso, and SoftBank Vision Fund agreed to invest $1 billion, implying a $7.25 billion valuation for Uber ATG on a post-money basis. which we expect to close in July 2019. This investment and expanded commercial partnership will further deepen ATG Toyota collaboration and add Denso's expertise for next-generation autonomous vehicles. The investment and agreement is a great recognition of the progress that our team has made to date. Our in-house efforts remain focused on the commercialization of autonomous vehicles within our network. This includes developing our own autonomous driving software and hardware stack, but it also includes making our network ready to deploy other partners' autonomous technologies, of which Toyota and Dimer have already been announced. Now I'll pass it on to Nelson to cover the Q1 financials in some detail. Thanks, Dara.