Uber Technologies (UBER 1.63%) is withdrawing its guidance for 2020, citing the uncertainty created by the COVID-19 pandemic.
The ride-hailing company said in addition to withdrawing its guidance for gross bookings, adjusted net revenue, and adjusted EBITDA, it's taking a writedown of $1.9 billion to $2.2 billion due to the impact the pandemic is having on some of its minority investments.
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Uber has stakes in food delivery and ride-hailing companies around the globe including an investment in China’s Didi Chuxing and Southeast Asia’s Grab. The writedown is expected to increase the first-quarter GAAP net loss by $1.9 billion to $2.2 billion but won’t impact adjusted net revenue, adjusted EBITDA, cash and cash equivalents, or short-term investments in the first quarter.
Uber also said its financial assistance program designed to support drivers and delivery people during the pandemic will reduce GAAP revenue by $17 million to $22 million in the first quarter and $60 million to $80 million in the second quarter.
“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 result,” Uber said in the press release.
Uber’s ride-hailing operations have been hurt during the pandemic as millions of people are forced to shelter at home. It has tried to offset those losses with its UberEats delivery service. Up until this warning late Thursday, Uber has provided little in the way of what impact the pandemic will have on its operations. Uber is slated to release first-quarter earnings on May 7.
