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Uber Technologies will buy back as much as $7 billion in shares to return capital to shareholders after reporting its first full year of operating profit and consistent positive free cash flow in 2023.
The repurchase plan “is a vote of confidence in the company’s strong financial momentum,” chief financial officer Prashanth Mahendra-Rajah said in a statement on Wednesday.”We will be thoughtful as it relates to the pace of our buyback, beginning with actions that partially offset stock-based compensation, and working toward a consistent reduction in share count.” The stock jumped as much as 11% in New York, its biggest gain since last May. It had more than doubled over the past 12 months through the close of trading Tuesday.
Uber is the latest of a handful of tech companies announcing plans to boost shareholder returns. Earlier this month, Meta announced plans to buy back an additional $50 billion in shares and issue its first quarterly dividend, while Airbnb expanded its buyback programme by $6 billion on Tuesday.
The capital allocation plan marks another milestone of financial health for Uber after it racked up $30 billion in accumulated deficits over years of freewheeling spending. But last week, CEO Dara Khosrowshahi said 2023 was an “inflection point”.
The repurchase plan “is a vote of confidence in the company’s strong financial momentum,” chief financial officer Prashanth Mahendra-Rajah said in a statement on Wednesday.”We will be thoughtful as it relates to the pace of our buyback, beginning with actions that partially offset stock-based compensation, and working toward a consistent reduction in share count.” The stock jumped as much as 11% in New York, its biggest gain since last May. It had more than doubled over the past 12 months through the close of trading Tuesday.
Uber is the latest of a handful of tech companies announcing plans to boost shareholder returns. Earlier this month, Meta announced plans to buy back an additional $50 billion in shares and issue its first quarterly dividend, while Airbnb expanded its buyback programme by $6 billion on Tuesday.
The capital allocation plan marks another milestone of financial health for Uber after it racked up $30 billion in accumulated deficits over years of freewheeling spending. But last week, CEO Dara Khosrowshahi said 2023 was an “inflection point”.
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