Uber share price surges as company expects profitable quarter for the first time ever

Uber share price closed 11.49% higher yesterday

Uber is set to embark on a profitable quarter for the first time ever, on an adjusted basis, after over ten years of going through its billions of dollars cash piles.

The ride-hailing firm has seen its stock fall by nearly 40% since it reached an all-time-high in early February this year.

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It is projecting gross bookings for July to September of between $22.8bn and $23.2bn, while its adjusted earnings before interest, tax, depreciation and amortisation is between ($25m) and $25m.

Uber’s chief financial officer Nelson Chai said a result less than break-even would need a substantial fall in business activity during the remainder of this month.

“With positive adjusted ebitda in July and August, we believe Uber is now tracking towards adjusted ebitda break-even in Q3, well ahead of our prior guidance,” said Chai, in a filing released before markets’ opening on Tuesday.

The Uber share price ended up closing 11.49% higher.

Chai said Uber is now expecting a strong Q4, and the filing projected that adjusted EBITDA would be between $0 and $100m.

Uber has previously told investors it was hoping for a loss “better” than $100m for Q3.

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