Uber is going back to its annual guidance for this year because of the outbreak of COVID-19. The CEO of Uber, Data Khosrowshahi, said that the company had planned to create a managing profit by the last quarter of this year. So, it shouldn’t be confused with the annual guidance.
On Thursday, Uber said that it was withdrawing the 2020 guidance for large bookings, adjusted total revenue and adjusted EBITDA that had been provided on 6th February of this year at the moment while there was earning call of the company. The previous 2020 guidance of Uber was large bookings between $75 million and $80 billion, total revenue $16 billion to $17 billion, and EBITDA loss between $1.45 billion and $1.25 billion. Uber didn’t provide any new guidance for this year yet.
In a statement, Uber said that the evolving nature of that novel coronavirus and the uncertainty, which the virus had caused for all the industries all over the world, had made impossible to predict the future as well as the impact on the economic condition in future. Uber also warned that it had hoped an impairment allegation between $1.9 billion and $2.2 billion due to the reduction in value on a few of minor equity investments. According to the latest annual report, Uber had its minority stakes in Grab, Didi, Zomato, and Yandex.
The one-time charge isn’t hoped to have severe impacts on the first-quarter of Uber net revenue, EBITDA, cash and cash equivalents or the short-term investments.