Ridesharing company UBER reported fourth quarter and full year 2022 financial results that came above analysts′ expectations with strongest quarter ever on robust demand and record margins.

Earnings of 29 cents a share topped market estimates for a loss of 15 cents a share.

In Q4, revenue grew 49% YoY to $8.6 billion, significantly outpacing Gross Bookings growth due to a change in the business model for UK Mobility business and the acquisition of Transplace by Uber Freight.

Net income was $595 million, which includes a $756 million net benefit (pre-tax) primarily due to net unrealized gains related to the revaluation of Uber’s equity investments.

Adjusted EBITDA of $665 million, up $579 million YoY and adjusted EBITDA margin as a percentage of Gross Bookings was 2.2%, up from 0.3% in Q4 2021. Incremental margin as a percentage of Gross Bookings was 11.9% YoY.

“We ended 2022 with our strongest quarter ever, with robust demand and record margins,” said Dara Khosrowshahi, CEO. “Our global scale and unique platform advantages position us well to accelerate this momentum into 2023.”

„In 2022, we significantly exceeded our profitability outlook, with an incremental margin of 10%,” said Nelson Chai, CFO. “Our outlook for a Gross Bookings and Adjusted EBITDA step up in Q1 builds on that progress, and sets us up for yet another record year.”

In mobility segment, revenue grew 82% YoY and 8% QoQ. The YoY increase was primarily driven by a $1.2 billion benefit related to a UK business model change that classifies most driver payments and incentives as cost of revenue.

Delivery segment brought $2.9 billion in revenue, up 21% YoY and 6% QoQ. Take Rate of 20.5% grew 250 bps YoY and grew 30 bps QoQ. Business model changes in some countries that classify certain payments and incentives as cost of revenue benefited Delivery Take Rate by 480 bps in the quarter (compared to 410 bps benefit in Q4 2021 and 500 bps benefit in Q3 2022).

For Q1 2023, the company anticipates Gross Bookings to grow 20% to 24% YoY, with an expected 3 percentage point currency headwind, translating to a range of $31.0 billion to $32.0 billion. Adjusted EBITDA is expected around $660 million to $700 million.

However, UBER ended 2022 with a net loss of $9.14 billion mostly from equity investments, according to UBER financial statements.