Uber announces US$20b in new share buybacks
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The news: Uber has announced USD20 billion ($30.8 billion) in new stock buybacks on strong Q3 forecasts and quarterly results.
The numbers: The new share buybacks would almost triple the USD7 billion in buybacks Uber has announced to date, after the company said its net income rose by a third in Q2 to USD1.4 billion compared to the year prior. Revenue increased 18% from USD10.7 billion a year earlier.
In results released Wednesday, Uber said its total second-quarter bookings came in ahead of expectations at USD46.8 billion, as its delivery unit outweighed a small miss in rideshare bookings.
Adjusted EBITDA for the second-quarter hit a record USD2.12 billion, ahead of the USD2.09 billion forecast. For the third quarter, Uber sees adjusted EBITDA to reach between USD2.19 billion to USD2.29 billion.
Uber said it expects customer spending to rise this quarter, with gross bookings, a gauge of customers’ total spending across all business units, coming in between USD48.5 billion and USD49.8 billion, ahead of analyst expectations of USD47.5 billion.
The context: CEO Dara Khosrowshahi said that Uber’s global growth in its mobility unit will remain relatively stable in Q3, the FT reports, adding that he is confident that US growth will accelerate despite fears of slowing consumer demand.
What they said: In a press release on the results Khosrowshahi said: “Our platform strategy is working, with record audience, frequency, and profitability across Mobility and Delivery…But we’re still only beginning to unlock the platform’s full potential, now with 20 autonomous partners around the world.”
On the share buyback, Prashanth Mahendra-Rajah, CFO said: “Today’s announcement of a new USD20 billion share repurchase authorization underscores our confidence in the business, following yet another quarter of strong top and bottom-line performance…Our trailing twelve month free cash flow hit a new all-time high of USD8.5 billion and we remain committed to driving durable, profitable growth.”
The sources: Uber earnings, FT, Bloomberg
