Why This Uber Analyst Expects EBITDA To Likely Reach $1B Per Quarter By Q4 2023

The analyst believes Uber will be on the verge of accelerating FCF conversion and EPS generation after it reaches EBITDA generation of $1 billion per quarter, expected to occur by the fourth quarter of 2023. 

Kulkarni expects Uber to generate ad revenues of over $1.25 billion and subscription revenues of over $1.75 billion in 2024. 

Nevertheless, Kulkarni raised 2023 and 2024 adjusted EBITDA and EPS estimates by around 15%, expecting adjusted EBITDA of $3.74 in 2023 and $6.06 in 2024.

The analyst reiterated the above-consensus estimates for gross bookings and revenue at $137.19 billion and $38.71 billion in 2023, and $160.15 billion and $45.46 billion in 2024. 

UBER Price Action: Uber shares are trading higher by 4.56% at $47.59 on the last check Tuesday at publication.

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