Uber Technologies announced on Wednesday it would buy back up to $7 billion in shares of the company, following a strong recovery in the company’s ride-hailing business and good demand in its food delivery division.
The company’s shares rose more than 5% to $72.50 in pre-market trading.
“Today’s authorization of our first share repurchase program is a vote of confidence in the company’s strong financial momentum,” said Prashanth Mahendra-Rajah, Uber’s chief financial officer.
Over the next three years, Uber expects gross ride growth of 15% to 19% and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) expansion of 30% to 40%.
Free cash flow as a percentage of Ebitda is expected to be 90% or more annually, the company said.
The company reported its first annual net profit in 2023 since going public in 2019. Uber had free cash flow of $3.4 billion last year, compared to $390 million in last year.
Source: Terra
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