Uber pushed his target to achieve a one-quarter profitability measure in 2021, overturning a decision made just three months ago to raise the target to the end of this year.
Uber will miss its target of achieving quarterly adjusted EBITDA profit in the fourth period of 2020, CFO Nelson Chai said on Thursday during the company’s earnings call. The new target is a quarter in 2021.
“Our goal remains the same, getting our growth back to business and achieving profitability for all of our stakeholders, which we now expect to achieve on an adjusted basis, on a quarterly basis, in 2021,” said Chai.
Uber did not specify which quarter in 2021 it would achieve Adjusted EBITDA profitability – earnings before interest, taxes, depreciation and amortization. However, the company said it will be less than a year from its original Q4 2020 target.
“Achieving profitability as quickly as possible remains a strategic priority for us,” CEO Dara Khosrowshahi said Thursday. “We believe the disruption caused by COVID-19 will impact our schedule by quarters, not years.”
If you feel like Uber has come full circle in three months, it has. Last November, Uber said it would have a profitable quarter, on an adjusted basis, by the end of 2021. Confidence in the company rose and early February Uber CEO Dara Khosrowshahi increased the profitability target by a full year in the fourth quarter of 2020.
And then COVID-19, the disease caused by the coronavirus, swept across Europe and North America. It has become a global pandemic and carpooling has become another COVID-19 statistic.
Uber reported Thursday a net loss of $ 2.94 billion in the first quarter. Uber’s adjusted EBITDA for the quarter was a loss of $ 612 million. The rideshare company generated $ 3.54 billion in revenue in the first quarter, up 14% from $ 3.1 billion on an annual basis.
Last month, and ahead of the company’s first quarter earnings report, Uber returned to his annual advice for 2020 due to the COVID-19 pandemic. Uber withdrew its 2020 forecast for gross reservations, adjusted net income and adjusted EBITDA, which were provided on February 6, 2020 when calling the company’s results. The company’s previous forecast for 2020 was gross bookings of $ 75 billion to $ 80 billion, adjusted net income of $ 16 to $ 17 billion, and adjusted EBITDA loss of $ 1.45 to $ 1.25 billion. dollars. Uber has not provided new directions for 2020.