Uber Technologies revealed on Wednesday its plan to repurchase up to $7 billion worth of company shares following a robust recovery in ride-share services and strong demand for its food delivery business.
The company’s shares surged over 5% to $72.50 in pre-market trading.
“Today’s approval of our inaugural share repurchase program reflects confidence in the company’s solid financial performance,” stated Uber CFO Prashanth Mahendra-Rajah.
Read more: Titan Watches inaugurates a new exclusive brand outlet in Dhaka
Over the next three years, Uber anticipates mid to high teens percentage growth in gross bookings and high 30s to 40% growth in adjusted core profit.
Uber expects free cash flow to account for 90% or more of adjusted earnings before interest, taxes, depreciation, and amortization on an annual basis.
In 2023, the ride-hailing giant achieved its first annual net profit since going public in 2019. Uber’s free cash flow soared to $3.4 billion in 2023, compared to $390 million the previous year.
Read more: PriyoShop secures $5 million to digitalize distribution infrastructure for MSMEs in Bangladesh
