Uber Technologies, Inc. (NYSE: UBER) announced today that the repurchase of up to $7 billion in common shares has been approved by the board of directors.
“Today’s authorization of our first-ever share repurchase program is a vote of confidence in the company’s strong financial momentum. We will be thoughtful as it relates to the pace of our buyback, beginning with actions that partially offset stock-based compensation, and working towards a consistent reduction in share count,” Prashanth Mahendra-Rajah, the CFO of Uber, stated in a press release on Wednesday morning.
The statement comes before the company’s Investor presentation on Wednesday. The company is holding Uber Investor Update on Wednesday at 5:00 a.m. Pacific Time (8:00 a.m. Eastern Time). The presentation includes an updated view of the company’s financial framework, strategy, and capital allocation plans. The live webcast and related documents are accessible at the company’s Investor Relations website, investor.uber.com.
Uber recently announced its results for fourth quarter and full year 2023, which shows that the company’s revenue grew 15% YoY to $9.9 billion, with gross booking grew 22% YoY to $37.6 billion. This indicates that the company continues to scale and generate strong and profitable growth. Uber’s platform registered more users, nearly 26 million daily trips, in 2023.
The company projects growth in adjusted EBITDA in the high 30s to 40%, growth in gross bookings in the mid to high teens (CAGR), and annual free cash flow (as a percentage of adjusted EBITDA) of 90% or more over the next three years.
Following this news, Uber’s shares increased by over 10% today.
About Uber and Its Operations:
The company was founded in 2009 and has quickly become well known and changing the scene of traditional taxi services and bringing in a new era of convenient and on demand transportation. It is a shining example of innovation in the busy environment of contemporary urban life and revolutionizing the way people travel throughout cities globally.
It’s birth was a paradigm change and introducing’ the concept of ridesharing’ and which allows people to easily connect with neighboring drivers via a user-friendly mobile app. This breakthrough technology not only provides exceptional comfort and but it also created economic prospects for drivers looking for flexible employment.
It has diversified into food delivery with Uber Eats and fright transportation with Uber Fright over the years and going beyond only ridesharing. This growth underscores it’s dedication to using technology to meet changing consumer needs and improve the efficiency of multiple businesses.
Despite its quick expansion and widespread adoption, it has experienced numerous problems including regulatory hurdles and safety concerns and labor practice controversies. However, the company has continued to adapt and introducing stringent safety measures, improving driver benefits, and working with local governments to assure regulatory compliance.
The company’s influence goes beyond practicality; it has sparked more extensive conversations about the future of urban planning and transportation and the gig economy. The company continues to be at the forefront of influencing how mobility will develop in the future by introducing novel ideas and embracing cutting edge innovations like driverless vehicles.
Uber is a global player operating in 70 countries and over 10,000 cities worldwide. It is the top category leader in all top 10 countries and proving to be the preferred platform in expanding gig economy.
