This Small Part of Uber's Business Just Helped Multiply Delivery Profits. And It's Just Getting Started.
Uber Technologies (NYSE: UBER) has managed to produce over $500 million in profits from its delivery business over the past two quarters, and there's one key driving force behind the gains.
Management calls out its advertising revenue as the key factor boosting its earnings power on the delivery side. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew from a combined $55 million in the fourth quarter of 2021 and first quarter of 2022 to $529 million during the same period a year later.
What's more, the advertising business is just getting started, with Uber committing to $1 billion in ad revenue by next year. And Uber has the competitive advantages that could get it there and beyond. That kind of high gross margin revenue could provide a massive boost to Uber's bottom line.
Source Fool.com
Uber Technologies Inc Stock
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