Uber shares climbed as much as 10 percent in extended trading after CEO Dara Khosrowshahi said he expects the company to be profitable on an adjusted basis by the end of this year.
Uber forecasted late last year it would achieve positive earnings before interest, taxes, depreciation and amortization, or EBITDA, by the end of 2021 as it vowed to abandon its Uber Eats food delivery business in markets where it isn’t a major player.
But during its earnings call Thursday, Khosrowshahi moved his forecast forward by a full year, citing a “meaningful improvement in profitability, including in Uber Eats” and sending shares spiking.
The ride-hailing giant raked in $4.07 billion in revenue in the fourth quarter — a 37-percent, year-over-year jump that narrowly beating Wall Street’s estimates of $4.06 billion.
Losses per share came out to 64 cents compared to the 68 cents analysts had forecasted.
The company in December sold its India arm of Eats to a local competitor after failing to make significant inroads in the market.
Uber’s ride-hail arm would be profitable as a standalone business, but the company’s costs rose 25 percent in the quarter to just over $5 billion thanks to heavy investment in the Eats delivery platform. Eats saw 14 percent revenue growth, but saw that number erased by promotions and deals designed to attract drivers and customers.