Uber unveils $7 billion share buyback after first profitable year

Uber Technologies announced on Wednesday its plan to repurchase up to $7 billion worth of company shares following a robust recovery in its ride-share segment and strong demand in its food delivery business. This move led to a more than 5% increase in Uber’s shares to $72.50 in pre-market trading.

According to Uber CFO Prashanth Mahendra-Rajah, the decision to initiate their inaugural share repurchase program reflects the company’s confidence in its solid financial performance. Over the next three years, Uber anticipates mid to high teens percentage growth in gross bookings and high 30s to 40% growth in adjusted core profit.

The company also expects its free cash flow as a percentage of adjusted earnings before interest, taxes, depreciation, and amortization to remain at 90% or higher annually. In 2023, Uber achieved its first annual net profit since going public in 2019, with free cash flow reaching $3.4 billion, a significant increase from $390 million the previous year.

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