Uber Announces $7bn Shares Buyback after First Profit
Uber Technologies said on Wednesday it will buy back up to $7 billion worth of company shares after a strong recovery in ride-share and healthy demand at its food delivery business. This is coming after the company returned to profitability.
Uber’s fourth quarter revenue grew 15 per cent year-on-year to $9.9 billion. For the full year, revenue was up 17 per cent at $37.3 billion. Reacting to the development, the company’s share price rose more than 5% to $72.50 in trading before the bell.
“Today’s authorization of our first-ever share repurchase program is a vote of confidence in the company’s strong financial momentum,” Uber CFO Prashanth Mahendra-Rajah said. Over the next three years, Uber expects gross bookings growth in the mid to high teens percentage and adjusted core profit growth in the high 30s to 40%.
Free cash flow as a percentage of adjusted earnings before interest, taxes, depreciation, and amortization is expected to be 90% or higher annually, the company said. The ride-hailing firm posted its first annual net profit last year since the company went public in 2019. Uber had a free cash flow of $3.4 billion in 2023, up from $390 million a year earlier.
“We’ll start with actions that partially offset stock-based compensation and work our way toward a consistent reduction in share count,” Mahendra-Rajah added. #Uber Announces $7bn Shares Buyback after First Profit >>>Nigeria: Banks Face Risks over 24hrs FX Positions Sell Down
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