Uber CEO Dara Khosrowshahi, third from left, attends the opening bell ceremony at the New York Stock Exchange, as his company makes its initial public offering, Friday, May 10, 2019.
Richard Drew | AP
Shares of Uber were up more than 5% in premarket trading Friday after the company forecasted reaching a key profitability goal sooner than expected.
The move is set to add more than $3.5 billion to Uber’s market valuation, bringing it around $66.8 billion.
In its fourth quarter 2019 earnings call Thursday, CEO Dara Khosrowshahi told analysts the company would move its EBITDA profitability target to Q4 2020, sooner than his previously stated goal of becoming profitable by 2021. The announcement sent Uber’s stock up as much as 10% in after hours trading.
Uber reported accelerating revenue growth on an annualized basis of 37% up from 30% the past quarter. The company beat the Refinitiv consensus estimate of $4.06 billion in quarterly revenue, reporting $4.07 billion. It also reported lower loss per share than expected by analysts, according to Refinitiv, reporting a loss of 64 center per share, excluding certain items, compared to a 68 cent expected loss.
The company reported a net loss attributable to the company in 2019 of $8.51 billion, mainly due to stock-based compensation. It expects its losses to be less pronounced than analyst estimates for 2020. Uber forecasted a $1.35 billion loss at the middle range before interest, taxes, depreciation and amortization (EBITDA), lower than the FactSet analyst consensus of a $2.83 billion loss.