Uber shares slide as its financial guidance misses estimates

Uber shares slide as its financial guidance misses estimates

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Air travelers wait in the ride share lot near a sign for Uber at Los Angeles International Airport (LAX) on August 20, 2020 in Los Angeles, California.
Mario Tama | Getty Images

Uber on Thursday said it would report around $5 billion in adjusted profit in 2024 and improve algorithms to keep costs low and win new customers.

However, the forecast is below the $5.7 billion analysts expect for 2024, according to Refinitiv data, and the company’s shares fell around 4% after being up as much as 5% earlier in the day. Shares were halted earlier.

Speaking at the company’s first investor day, Chief Financial Officer Nelson Chai said Uber will report around $5 billion in adjusted earnings before interest, taxes, depreciation and amortization, a measure that excludes one-time costs, primarily stock-based compensation.

“We think it’s a worthwhile target, could there be upside, absolutely, but let’s work on that target for now,” Uber Chief Executive Officer Dara Khosrowshahi said.

The company expects to also report gross bookings of between $165 billion and $175 billion in 2024, Chai said.

That outlook compares to an adjusted EBITDA loss of $0.8 billion in 2021 and gross bookings of $90 billion.

Analysts had forecast gross bookings of $169.73 billion, according to Refinitiv data.

Uber also revealed several strategies for growth and new business opportunities, including a plan to have at least five long-term autonomous vehicle partnerships in the U.S. in 2022.

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