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Uber CEO sees faster road to profitability

FoxBusiness.com

Uber's business is rolling along and despite posting a $1.1 billion quarterly loss CEO Dara Khosrowshahi says the company will be profitable sooner than originally forecast.

"Our progress in 2019 and our 2020 plans give me the confidence to challenge our teams to accelerate our EBITDA profitability target from Full Year 2021 to Q4 2020" he said during the company's earnings call.

The stock, which posted modest gains on Thursday, jumped by double-digits in the extended session. The stock has gained 24 percent this year, exceeding the 3.5 percent increase for the S&P 500.

Khosrowshahi also stressed that meeting the important milestone should be an easy hurdle to clear.

"It’s important to emphasize that we plan to achieve this profitability target assuming only modest improvements in the current competitive environment, and without the assumption of any significant changes to our current portfolio of businesses", he explained.

For the fourth quarter, Uber's results were mixed.

The company posted a $1.1 billion loss. On a per-share basis that is  $0.64, less than the $0.68 analysts were expecting. However, revenue fell shortcoming in at $4.07 billion missing the $4.1 billion estimate.

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Rival Lyft shares got a lift in the extended session after closing down over 1 percent Thursday.

FOX Business' Susan Li contributed to this report.

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