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Uber forecasts first-ever adjusted profit, shares jump 7%

Uber forecasts first-ever adjusted profit, shares jump 7%

FILE PHOTO: A screen displays the company logo of Uber Technologies Inc on the day of its IPO at the New York Stock Exchange (NYSE) in New York, U.S., May 10, 2019. REUTERS/Brendan McDermid

Uber Technologies Inc could post its first profit on an adjusted basis in the current quarter, its chief financial officer said on Tuesday, sending the ride-hailing company's shares up nearly 7 per cent in premarket trading.

"With positive adjusted EBITDA in July and August, we believe Uber is now tracking towards adjusted EBITDA breakeven in Q3, well ahead of our prior guidance," said CFO Nelson Chai. 

The company said last month riders returned to its platform in greater numbers in July, and that it expects the trend to continue in the coming months, together with strong food delivery orders.

Uber now expects third-quarter adjusted earnings before interest, taxes, depreciation and amortization - a metric that excludes one-time costs such as stock-based compensation - between loss of US$25 million and profit of US$25 million, compared to the prior forecast of a loss of US$100 million.

For the fourth quarter, Uber expects to post adjusted EBITDA between US$0 and US$100 million, it said.

Uber on Tuesday also narrowed its forecast for third-quarter gross bookings and now expects it between US$22.8 billion and US$23.2 billion from US$22 billion to US$24 billion earlier.

Source: Reuters

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