Uber’s first annual operating profit has marked an “inflection point” in the company’s history, sending its shares to new heights. The San Francisco-based company reported an operating profit of $1.1 billion in 2023, a significant turnaround from its $1.8 billion loss in 2022. This milestone comes as a result of strong demand for ride-hailing and deliveries, as well as growth in its advertising business, which surpassed analysts’ expectations.

CEO Dara Khosrowshahi celebrated the results as proof that Uber can continue to generate strong profitable growth at scale. The company also reported a net profit of $1.9 billion for 2023, a significant improvement from its $9.1 billion loss in 2022. As a result of these positive figures, Uber’s shares rose about 1% in midday trading in New York, with the company’s market value reaching almost $150 billion.

This achievement comes after years of grappling with steep losses and fundamental doubts about its business model, following a disappointing initial public offering. However, as the world emerged from the Covid pandemic, Uber’s margins improved as competitors fell by the wayside and the company tightened its costs.

Uber’s potential move to return cash to investors, including the possibility of a share buyback and even its first-ever dividend announcement, signifies how far the company has come. The company has raised massive amounts of capital in a push to dominate the ride-sharing market, and under the leadership of Khosrowshahi, it has shifted its focus towards profitability.

The last quarter of 2023 proved to be a standout quarter, with revenues rising 15% to $9.9 billion, and forecasts for the first quarter of 2024 are in line with analysts’ estimates. Uber reported an increase in its user base, with monthly active users reaching a record high of 150 million.

Uber’s quarterly gross bookings were up 22% to $37.6 billion, and the number of Uber trips in the fourth quarter surged 24% to 2.6 billion. Additionally, adjusted profit margins for both the ride-hailing and the restaurant, grocery, and retail delivery businesses improved year on year.

The company has also seen growth in the grocery and retail delivery sector, accounting for a fifth of the annual growth in the delivery segment. Despite the challenges Uber has faced over the years, the company’s recent success indicates a new chapter in its history, one marked by profitability and continued growth.