Uber Technologies Inc announced Thursday that it had its first profitable quarter on an adjusted basis since the start of its two most important segments a decade ago, ride-hailing and restaurant delivery.
Company executives also assured investors that Uber had solved its driver shortage after launching a program that had largely succeeded in luring drivers back onto the road.
However, a sharp fall in the value of its stake in Chinese ride-hailing service Didi caused a net loss of $2.4 billion in the third quarter, and Wall Street remains largely bearish in its forecast for Uber’s fourth-quarter performance.
The California-based company announced an adjusted profit of $8 million for the third quarter, compared with a loss of $625 million in 2020.
Uber forecast adjusted profit of $25 million to $75 million for the final quarter of 2021, compared with analysts’ expectations of $114 million.
Despite the adjusted profit, Uber’s earnings report is still considered bleak after smaller U.S. rival Lyft Inc announced its second consecutive adjusted quarterly profit of $67.3 million and forecast adjusted EBITDA of between $70 million and $75 million for the fourth quarter.
Both companies have yet to become net profitable, and neither company has made any forecasts for subsequent years.
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