Uber's CFO Nelson Chai to Depart, Marking Significant Executive Exit Since IPO

Uber Technologies, Inc UBER CFO Nelson Chai plans to leave the ride-hailing company. Chai's exit will mark the most significant executive departure since the company went public in 2019, Bloomberg cites familiar sources.

Chai, a financial-industry veteran, was crucial in steering the company toward improved earnings, strong free cash flow, and operating profitability.

Under Chai's tenure, Uber made significant acquisitions, including the $2.65 billion purchase of Postmates in 2020 and Transplace's $2.25 billion acquisition in the following year, helping the company diversify beyond ridesharing.

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Despite the challenges posed by the pandemic, Chai successfully guided Uber to its first-ever quarter of positive adjusted Ebitda, demonstrating the company's progress in moving past its growth-at-all-costs phase.

Uber generated an adjusted Ebitda of $186 million in 2022, showing substantial improvements in profitability. The company aims to achieve profitability on a generally accepted accounting principles (GAAP) basis.

Moody's Investors Service recently upgraded Uber's credit grade, acknowledging the company's significant profitability and cash flow generation improvements.

Before joining Uber, Chai held prominent roles at institutions such as Merrill Lynch, the New York Stock Exchange, and CIT Group, where he worked alongside Wall Street veteran John Thain in navigating the 2008 financial crisis.

In May, Uber reported first-quarter FY23 revenue growth of 29% year-on-year to $8.82 billion, beating the consensus of $8.72 billion. 

Revenue from Mobility grew to $4.33 billion (+72% Y/Y), Delivery was $3.09 billion (+23% Y/Y), and Freight at $1.40 billion (-23% Y/Y).

Trips grew 24% Y/Y to 2.1 billion, or 24 million per day. Uber clocked an Adjusted EBITDA of $761 million, driven by Mobility.

Price Action: UBER shares closed lower by 0.28% at $42.90 premarket on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.