A banner announcing the IPO of Uber Technologies hangs outside the New York Stock Exchange, May 10, 2019.
Andrew Kelly | Reuters
Uber Technologies said on Wednesday it will buy back up to $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% to $72.50 in trading before the bell.
“Today’s authorization of our first-ever share repurchase program 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%.
Free cash flow as a percentage of adjusted earnings before interest, taxes, depreciation, and amortization is expected to be 90% 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 $3.4 billion in 2023, up from $390 million a year earlier.
