Uber Technologies Inc. has announced it is withdrawing its 2020 guidance for Gross Bookings, Adjusted Net Revenue, and Adjusted EBITDA, which were provided on 6 February.
The announcement comes as the firm prepares for its first quarter investment conference call, which is to take place on Thursday 7 May, to discuss its financial results.
A statement released by the company, said: "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 say they believe they will play an important role in the economic recovery of cities around the globe.
The firm's efforts to support those whose earning opportunities have been depressed as a result of COVID-19, as well as communities hit hard by the virus, included several initiatives being implemented during the first quarter of 2020, including a financial assistance program for drivers and delivery people.
The statement continued: "We intend to account for this program as Contra Revenue, which we expect will reduce GAAP Revenue by an estimated $17 to $22 million in Q1 and an estimated $60 to $80 million in Q2.
"To help investors assess the impact of COVID-19 on our financial position, and in accordance with recent SEC staff guidance, we intend to exclude the impact of certain COVID-19-specific expenses from Adjusted Net Revenue and from Adjusted EBITDA.
"Given that much of the world is currently on some form of coronavirus lockdown, we expect to record an impairment charge against the carrying value of some of our minority equity investments.
"We believe these investments will be reduced by an estimated range of $1.9 to $2.2 billion during the three months ended March 31, 2020, due to the impact of the pandemic on the estimated value of these entities.
"These reductions in Investments on our Balance Sheet are expected to increase Q1 GAAP net loss by $1.9 to $2.2 billion, but are not expected to impact Q1 Adjusted Net Revenue, Adjusted EBITDA, cash and cash equivalents, or short-term investments."
As of this article's final edit and publish, Uber's shares sit at $27.03 on the stock market.
