Uber Says Ebitda Could Hit $5 Billion. Stock Drops After Halt Is Lifted.

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Uber expects to expand its gross bookings by between 22% and 25% a year through 2024, with earnings by one measure reaching $5 billion in 2024.

The ride-sharing and food-delivery company made the forecast, which was broadly in line with Street estimates, at an analyst meeting in New York on Thursday.

Thursday morning, the stock was halted for news pending. Before the halt, Uber shares were up 3.7%, to $41.69; it was down about 2.5% at $39.19 near midday, after trading resumed.

Uber (ticker: UBER) Chief Financial Officer Nelson Chai said at the event that the company expects to reach gross bookings of between $165 billion and $175 billion in 2024, up from $90.4 billion in 2021. 

Chai says the company sees adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, hitting $5 billion in 2024, compared with a $774 million 2021 loss on that basis. 

Uber expects sales to grow faster than bookings through 2024, and it added that the company should be generating “significant” free cash flow in the same time frame. Uber said it expects to report positive free cash flow for the first time in the 2022 fourth quarter.

According to data compiled by FactSet, Street estimates had called for the company to post 2024 gross bookings of $168 billion, with adjusted Ebitda of $5.3 billion.

Late Wednesday, Uber posted better-than-expected results for the fourth quarter, with revenue of $5.8 billion, up 82% from a year ago. Gross bookings were $25.9 billion, up 51%. For the March quarter, the company is projecting gross bookings of $25 billion to $26 billion, and adjusted Ebitda of between $100 million and $130 million.

Write to Eric J. Savitz at [email protected]