Uber posts first annual profit of $2.9bn since listing

The news: Rideshare giant Uber has forecast higher-than-expected quarterly profit and bookings after posting its first annual profit as a public company.

The numbers: It posted an annual profit of USD1.89 billion ($2.9 billion), fuelled by higher demand in its ride sharing and food delivery businesses. The company expects earnings of USD1.26 billion to USD1.34 billion in the March quarter, with gross bookings forecast to be in the USD37 billion to USD38.5 billion range.

The context: Chief executive Dara Khosrowshahi said the results marked “an inflection point” for Uber, proving that it could continue to generate strong profitable growth at scale. The return comes almost five years after Uber’s initial public offering.

Uber said revenue from its core ride-share business grew 34%, driven in part from "outsized trip growth" in Latin America and Asia Pacific markets. The delivery business revenue grew 6%, while gross bookings growth for the segment was the highest in two years. Uber shares rose nearly 2% after the company said it will discuss capital allocation plans at its investor day on 14 February, lifting hopes of a buyback.