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Uber forecasts first-ever adjusted profit, shares up 7%

Uber Technologies Inc UBER.N could post its first profit on an adjusted basis in the current quarter, its chief financial officer said sending the ride-hailing company’s shares up nearly 7% in premarket trading.

CFO Nelson Chai said the positive adjusted EBITDA in July and August, we believe Uber is now tracking towards adjusted EBITDA breakeven in Q3, well ahead of our prior guidance.

The company said last month riders returned to its platform in greater numbers in July, and that it expects the trend to continue in the coming months, together with strong food delivery orders.

Uber now expects third-quarter adjusted earnings before interest, taxes, depreciation and amortization – a metric that excludes one-time costs such as stock-based compensation – between loss of $25 million and profit of $25 million, compared to the prior forecast of a loss of $100 million.