Uber Technologies (UBER.N) 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 for its food delivery business.
The company’s stock surged over 5% to $72.50 in pre-market trading.
Uber’s Chief Financial Officer, Prashanth Mahendra-Rajah, stated, “Today’s approval of our inaugural share buyback initiative reflects confidence in the company’s impressive financial performance.”
Uber anticipates gross bookings growth in the mid to high teens percentage and adjusted core profit growth in the high 30s to 40% over the next three years. The company also expects its free cash flow as a percentage of adjusted earnings before interest, taxes, depreciation, and amortization to be 90% or higher annually.
Having achieved its first annual net profit since going public in 2019, the ride-hailing giant reported a significant increase in free cash flow to $3.4 billion in 2023, compared to $390 million the previous year.
