Uber Stock Jumps on Possible First-Ever Profit in Third Quarter
Uber Technologies (UBER) – Get Uber Technologies, Inc. Report rose Tuesday after the ride-hailing giant said it could post its first adjusted profit in the third-quarter.
Shares of the San Francisco company at last check were up 7.5% to $42.77.
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Uber said in a Securities and Exchange Commission filing that it now expected third-quarter adjusted results before interest, taxes, depreciation and amortization to range from a loss of $25 million to a profit of $25 million.
The company earlier had forecast a loss of $100 million.
For the fourth quarter, Uber said it expects to post adjusted Ebitda between $0 and $100 million.
The company also narrowed its forecast for third-quarter gross bookings and now expects the figure to range from $22.8 billion to $23.2 billion. An earlier forecast called for $22 billion to $24 billion.
Chief Financial Officer Nelson Chai said the company expected to deliver sequential adjusted Ebitda improvement in the fourth quarter “even as we continue to invest in our growth initiatives.”
“They say that crisis breeds opportunity, and that’s certainly been true of Uber during the last 18 months,” Chief Executive Dara Khosrowshahi said in a statement.
“[We’ve] not only grown our global leadership across both mobility and delivery; we’ve done so more profitably than ever before. As a result, Uber is reaching an important milestone.”
Last month, Uber topped Wall Street’s second-quarter forecasts with earnings of 58 cents a share on revenue of $3.9 billion.
But adjusted Ebitda came in at negative $509 million, wider than expected.
Second-quarter gross bookings totaled $21.5 billion, with mobility accounting for $8.6 billion and food delivery accounting for $12.9 billion.
On Monday, a Dutch court ruled that the company’s drivers are employees and not contractors.
The ruling means that Uber drivers are entitled to greater workers’ rights under local labor laws, which could be a setback for the U.S. company’s operations in Europe.
