UBER Technologies said on Wednesday (Feb 14) it will buy back up to US$7 billion worth of company shares after a strong recovery in ride-share and healthy demand at its food delivery business.
The company’s shares rose more than 5 per cent to US$72.50 in trading before the bell.
“Today’s authorisation of our first-ever share repurchase programme 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 per cent.
Free cash flow as a percentage of adjusted earnings before interest, taxes, depreciation, and amortisation is expected to be 90 per cent 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 US$3.4 billion in 2023, up from US$390 million a year earlier. REUTERS
