By Dhirendra Tripathi
Investing.com – Uber Technologies (NYSE:UBER) stock jumped 6% in Tuesday’s premarket trading after the company said it will reach an adjusted profit already in the current quarter, sooner than had been expected.
Uber projects adjusted earnings before interest, taxes, depreciation and other costs between a loss of $25 million and a profit of $25 million in the third quarter that ends in nine days' time. It was earlier expected to post a loss of under $100 million by that measure.
“With positive adjusted ebitda in July and August, we believe Uber is now tracking towards adjusted ebitda break-even in Q3, well ahead of our prior guidance,” chief financial officer Nelson Chai said in the filing.
Adjusted EBITDA is a non-GAAP measure of basic operating profit. An adjusted profit is expected in the next quarter as well, the company said.
Strong demand at Uber Eats, its online food ordering services, and a recovery in cab bookings are driving the company’s optimism.
Smaller rival Lyft (NASDAQ:LYFT) had earlier beaten Uber in forecasting an adjusted profit when it said in April that it will turn a corner by the end of this year.
Uber’s cab business was jolted by the pandemic as people stayed home or preferred to use personal transport for fear of the virus. On the other hand, the online food ordering business boomed.