Uber Technologies shares climbed in early trading in New York as the ride-hailing giant reported higher revenues and posted a surprise profit in its most recent quarter.
Underlying earnings for the final quarter of 2022 were US$665mln, up from US$86mln a year earlier, and compared to the consensus forecast for a loss.
Figures were helped by a US$756mln unrealised hike in the value of its investments, but revenues also rose to US$8.6bn from US$5.8bn and there was a big rise in operating margins.
Dara Khosrowshahi, chief executive, said it had been the strongest quarter ever for the group, with momentum continuing into the current year.
For the first quarter of 2023, gross bookings are forecast to grow 20-24% year-on-year, which with currency headwinds translates into US$31-32bn running annual revenue in money terms.
Underlying profits are forecast to come in between US$660mln – US$700mln.
Nelson Chai, CFO, added: "In 2022, we significantly exceeded our profitability outlook, with an incremental margin of 10%,”
“Our outlook for a Gross Bookings and Adjusted EBITDA step up in the first quarter builds on that progress, and sets us up for yet another record year."
Revenues for the whole of 2022 were US$19.7bn, with a loss from operations of US$1.83bn and a net loss of US$9.14bn.
In a call following the results, Khosrowshahi added that some of Uber’s competitors in Europe have pulled back “significantly from what were unhealthy spend levels in the past that didn’t make any sense.”
Uber Eats ahead also proved resilient post-pandemic, adding "We are growing faster than the category generally if you look at us globally.”
Shares were up 3% to US$36.16 in early trading.