Ride-hailing technology platform Uber Technologies has made an optimistic statement regarding its operating profit outlook but market analysts went dry on the number as they had targeted more.
However, the company also made certain announcements regarding growth and targeting strategies to improve its reach and add more drivers to its platform.
Several Uber Technologies’ executive gave in information regarding the company’s upcoming plans to boost growth and customer acquisition, especially after the Covid-19 pandemic, at the company’s first investor day.
Uber’s EBITDA Forecast by 2024
The mobility service providing company Uber Technologies’ Chief Financial Officer Nelson Chai, informed in the company’s first investor day that they would report an adjusted earnings before interest, taxes, depreciation and amortization of around $5 billion by fiscal 2024, a measure that excludes one-time costs, primarily stock-based compensation.
However, the operating profit estimated by the company fell short of analyst estimates on Thursday, as a result of which the shares of the tech stock declined 4%.
As per Refinitiv data, analysts estimated Uber Tech’s operating profit figure at $5.7 billion for 2024.
Regarding this target, the company’s Chief Executive Officer Dara Khosrowshahi said, “We think it’s a worthwhile target. Could there be upside? Absolutely, but let’s work on that target for now.”
Uber’s Forecasted Gross Bookings
Besides estimating its EBITDA by 2024, the ride-hailing company also reported its estimated gross bookings for fiscal 2024, in the range of $165 billion to $175 billion.
However, unlike the operating profit’s estimated figure, Uber’s forecast for gross booking by 2024 is at par with the analysts’ figure at $169.73 billion.
According to an analyst at Vertical Research Partners, some of the money Uber was investing in new businesses would pay off with higher profitability after 2024, adding ‘2024 looks like conservative revenue growth’.
Uber’s New Strategies to Boost Growth
Certain executives of the company in the live event in New York, informed that Uber was planning to fuse its two platforms, the ride-hailing and food-delivery, into one strategically implemented platform, for making it a cost-saving marketplace.
According to its CEO, combining the two platforms in one would bring down customer acquisition costs.
Also, Uber is looking to tweak its algorithms to ensure more workers signed up for both ride-hail and delivery services, as it would improve driver dispatching and allow for higher utilization of each worker, stated Khosrowshahi, as per Reuters.
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