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Grab Holdings nasdaq Grab Stock Rises on Q1 Revenue Beat

Grab Holdings (NASDAQ: GRAB) Stock Rises on Q1 Revenue Beat

Grab Holdings Limited (NASDAQ: GRAB) stock saw a marginal increase in pre-market trading Friday following the release of first-quarter revenues above estimates.

Grab Holdings (GRAB) recently announced its financial results for the first quarter. The company posted revenue of $653 million, marking a 24% year-over-year increase and surpassing the consensus estimate of $645.82 million. The revenue growth also translated to a 29% increase on a constant currency basis. Despite this revenue beat, the adjusted EPS for the quarter came in at -$0.03, missing the analyst estimate of -$0.01.

The first quarter showed significant improvements across key financial metrics for Grab. The company reported an on-demand Gross Merchandise Volume (GMV) of $4.2 billion, reflecting an 18% year-over-year growth. The operating loss significantly improved, narrowing to -$75 million from -$204 million in the previous year. In addition, the adjusted EBITDA reached an all-time high of $62 million, a notable improvement from a negative $67 million in the prior year.

Anthony Tan, CEO of Grab, said their strong quarterly results were due to focusing on product growth. He pointed out Grab’s focus on affordability and reliability, leading to higher platform usage and more frequent orders.

CFO Peter Oey highlighted the record adjusted EBITDA and the company’s commitment to profitability and shareholder returns, citing the repurchase of around $97 million worth of shares and the full repayment of a $497 million Term Loan B.

FY2024 EBITDA and Revenue Guidance

Grab Holdings (NASDAQ: GRAB) now expects its adjusted EBITDA for 2024 to be between $250 million and $270 million, higher than the previous forecast of $180 million to $200 million. However, the revised revenue forecast for FY2024 is $2.7 billion to $2.75 billion, slightly lower than the analyst consensus of $2.768 billion.

The company reported solid revenue growth across segments, with the Mobility segment reporting a 27% year-over-year revenue increase and the Financial Services segment experiencing a 53% YoY revenue growth.

Grab’s strategic emphasis on cost reduction and marketplace optimization was apparent in the decrease of On-Demand incentives as a percentage of GMV. This metric dropped to 9.7% from 10.7% in the same period last year.

Grab focused on reducing costs and optimizing marketplace health, as evidenced by the reduction of On-Demand incentives as a percentage of GMV, down to 9.7% from 10.7% in the same period last year.

The company maintains a strong financial position, with cash liquidity totaling $5.3 billion at the end of the first quarter, positioning it well for continued growth and investment in its platform.

Grab Holdings (NASDAQ: GRAB) Stock Reaction

As of 09:04 a.m. (Eastern Time) Friday, GRAB stock traded at $3.69, marking a 1.10% increase compared to the previous trading session.