Uber could make first operating profit this quarter

Uber Technologies Inc (NYSE:UBER) said it could break into profit for the first time in the current quarter as bookings have been stronger than first expected.

The parent of the taxi app and Uber Eats takeaway food delivery service reckons it will generate underlying earnings (adjusted EBITDA) of up to US$25mln, though the guidance range went as low as a loss of US$25mln. 

Bookings for the three months to the end of September will come in around US$22.8-23.2bn, it said in a regulatory filing, tightened up from the previous US$22-24bn guidance and the US$21.5bn in the second quarter.

“They say that crisis breeds opportunity and that’s certainly been true of Uber during the last 18 months,” chief executive officer Dara Khosrowshahi said in the statement.

In the previous quarter, Uber’s underlying profits came in at US$509mln and management said it was “well positioned” to reach EBITDA profitability by the fourth quarter.

Uber made a paper profit of US$1.1bn at the net income level in the second quarter, but this was thanks to unrealized gains of US$1.4bn and US$471mln due to the revaluation of its equity investments in Chinese ride-sharing giant Didi Global Inc and self-driving startup Aurora, respectively, though shares in Didi have tumbled over 45% since the listing at the end of June.

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Story by ProactiveInvestors