Uber Technologies, Inc. (NYSE:UBER), a technology company that develops and operates proprietary applications across various regions excluding China and Southeast Asia, is nearing a significant milestone in its business trajectory. As of Tuesday, the company is on track to reach breakeven within the next 12 months, according to industry analysts.
In the latest financial year, Uber reported a loss of $9.1 billion and a trailing 12-month loss of $374 million. Despite these figures, the $94 billion market-cap company has made strides towards its target of breaking even. The primary focus for investors remains Uber Technologies' path to profitability and when it will reach this crucial point.
The consensus among the 42 industry analysts covering Uber Technologies is that the company is close to breakeven. They anticipate that Uber will post a final loss in 2022 before turning a profit of $855 million in 2023. This projection implies that Uber is expected to break even within roughly 12 months or less from now.
To reach these consensus forecasts, analysts expect the company to grow by 50% year-on-year, on average. This expectation signals high confidence from analysts in Uber's future performance. If this growth rate proves too ambitious, the company may achieve profitability later than analysts predict.
One aspect highlighted about Uber Technologies is its relatively high level of debt. Typically, debt should not exceed 40% of a company's equity. In Uber's case, it stands at 96%. This higher debt obligation increases the risk associated with investing in the loss-making company.
While underlying developments driving Uber Technologies' growth were not the focus of this overview, it's worth noting that a high growth rate is not unusual for a company in a period of investment. According to InvestingPro data, Uber's market cap is currently $93.35 billion with a P/E ratio of -242.57. Over the last six months, there's been a large price uptick of 45.2%, highlighting the company's potential for growth.
InvestingPro Tips suggest that Uber is a prominent player in the Ground Transportation industry and its net income is expected to grow this year. Additionally, it's also noted that Uber operates with a moderate level of debt, which aligns with the high level of debt mentioned earlier. These tips provide valuable insights for investors considering Uber's growth potential and risk factors.
For more in-depth analysis and tips, consider checking out InvestingPro, which provides real-time metrics and additional tips for companies like Uber. Currently, InvestingPro lists 10 additional tips for Uber, offering a comprehensive view of the company's financial health and outlook.
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