- Uber shares climb Tuesday after the company said it expects to reach adjusted profitability in the third quarter.
- It forecast adjusted EBITDA of up to $US25 ($AU34) million compared with its previous outlook of a loss of less than $US100 ($AU138) million.
- Uber raised the top end of its third-quarter gross bookings guidance to $US22 ($AU30).8 ($AU31) billion.
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Uber stock moved higher Tuesday after the company upwardly revised its financial projection for the third quarter and now expects a swing to an adjusted profit.
The company, in a filing with the Securities and Exchange Commission, forecast adjusted earnings before interest, taxes, depreciation, and amortization of up to $US25 ($AU34) million, saying that’s based on reaching adjusted EBITDA in July and August. The forecast does include a potential adjusted EBITDA loss of at least $US25 ($AU34) million.
Management told analysts in August said it expected total company adjusted EBITDA “to be better than the loss of $US100 ($AU138) million” for the third quarter.
Uber stock rose as much as 6% to $US42.16 ($AU58) in premarket trade then trimmed the advance to 5.1%. Shares so far this year has declined by nearly 19%. Rival Lyft rallied 4%.
For the fourth quarter, Uber foresees adjusted EBITDA in a range of breakeven to $US100 ($AU138) million, compared with its previous projection to reach profitability on that measure.
“They say that crisis breeds opportunity and that’s certainly been true of Uber during the last 18 months,” Dara Khosrowshahi, Uber’s CEO, said in a statement, adding that it’s been able to reach its profitability milestone in part on growth in leadership in its mobility and delivery segments.
The company has been investing in recruitment to deal with stronger demand alongside a shortage of drivers during the pandemic that’s resulted in surge pricing and long wait times.
Uber on Tuesday also projected third-quarter gross bookings of $US22 ($AU30).8 ($AU31) billion to $US23.2 ($AU32) billion compared with its previous outlook of $US22 ($AU30) billion to $US24 ($AU33) billion. Gross bookings in the second quarter more than doubled to $US21.9 ($AU30) billion.