Shares of Uber Technologies Inc. (NYS:UBER) rallied 4.3% in premarket trading Tuesday, after the updated its third-quarter outlook after the ride-share and delivery company saw its first months of profitability in adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) in July and August. The company revised its gross bookings guidance range to between $22.3 billion and $23.2 billion from $22 billion to $24 billion. The company now expects adjusted Ebitda between negative $25 million and positive $25 million, after previous guidance of "better than a loss of $100 million," citing "strong improvements" in both Mobility and Delivery. For the fourth quarter, the company now expects adjusted Ebitda of between $0 and $100 million, compared with previous guidance of "adjusted Ebitda profitability," although there was still significant forecasting uncertainty. "They say that crisis breeds opportunity and that's certainly been true of Uber during the last 18 months," said Chief Executive Dara Khosrowshahi. "As a result, Uber is reaching an important milestone." Uber's stock has tumbled 17.3% over the past three months through Monday, while the S&P 500 (S&P:SPX) has gained 3.2%.
Sept. 21, 2021, 6:49 a.m. EDT