Uber expects strong core profit as ride share, food delivery pick up pace

Agency :
Uber Technologies forecast quarterly core profit and gross bookings above estimates and reported market-beating results for the holiday quarter on Wednesday, fuelled by higher demand in its ride sharing and food delivery businesses.
It posted its first annual net profit as a public company as user retention improved, also benefiting from initiatives like memberships, corporate travel and advertising.
Uber will discuss capital allocation plans at its investor day on February 14, it said, lifting hopes of a buyback plan that sent its shares up nearly 2 percent.
CEO Dara Khosrowshahi had said in September Uber was considering buybacks and dividend.
“Uber’s platform advantages and disciplined investment in new growth opportunities resulted in record engagement and accelerating Gross Bookings in Q4,” Chief Financial Officer Prashanth Mahendra-Rajah said.
The company expects adjusted earnings before interest, taxes, depreciation, and amortization of $1.26 billion to $1.34 billion in the quarter ending March, compared with expectations of $1.26 billion, according to LSEG data.
Uber sign seen at shopping mall in California Uber’s gross bookings forecast of $37 billion to $38.5 billion came in higher than expectations of $37.33 billion.