(Bloomberg) — Uber Technologies Inc. said it expects $5 billion of adjusted earnings by fiscal 2024, signaling that the ride-hailing giant’s recent profitability milestone will persist over the long-term.
“We now have the musculature and the data structures where we are effectively able to cross our audience through a number of different experiences,” Chief Executive Officer Dara Khosrowshahi said at an investor day on Thursday.
The shares fell about 2.5% Thursday in New York, reversing gains made in late trading Wednesday after the company reported quarterly earnings.
Uber sees gross bookings reaching $165 billion to $175 billion by 2024 and expects to be cash flow positive by the end of this year, Chief Financial Officer Nelson Chai said.
The company also said its advertising business is still in its “early days” but projected that the segment would reach $1 billion in gross bookings by 2024.
Atlantic Equities analyst James Cordwell said Uber’s guidance was basically in line with analysts’ estimates and “the lack of upside is maybe what is disappointing the market.” What’s more, long-term targets don’t tend to be a “good idea in a sector as volatile and unpredictable as tech.”
Like its rival Lyft Inc., Uber’s progress toward reaching pre-pandemic ridership was thwarted by omicron, which kept people away from offices, schools and social events. The companies’ fortunes have ebbed and flowed along with Covid-19 infection rates and restrictions, which affect demand for rides as well as meal delivery. Lyft reported fewer riders than analysts expected in the fourth quarter, but also recorded its highest-ever revenue per rider.
On Wednesday, Uber reported revenue rose 83% to $5.8 billion in the fourth quarter, topping analysts’ estimates. The company also recorded the most active users in its history. Uber was profitable on an adjusted Ebitda basis in the third and fourth quarters of 2021.
(Updates with analyst comment in sixth paragraph.)
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