Uber unveils $7 billion share buyback after first profitable year

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Uber Technologies said on Wednesday it will buy back up to $7 billion worth of company shares after a strong recovery in ride-share and healthy demand at its food delivery business.

The company's shares rose more than 5% to $72.50 in trading before the bell.

"Today's authorization of our first-ever share repurchase program is a vote of confidence in the company's strong financial momentum," Uber CFO Prashanth Mahendra-Rajah said.

Over the next three years Uber expects gross bookings growth in the mid to high teens percentage and adjusted core profit growth in the high 30s to 40%.

Free cash flow as a percentage of adjusted earnings before interest, taxes, depreciation, and amortization is expected to be 90% or higher annually, the company said.

The ride-hailing firm posted its first annual net profit last year since the company went public in 2019. Uber had a free cash flow of $3.4 billion in 2023, up from $390 million a year earlier.

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