Shares of Grab Holdings ( GRAB -7.42% ) Stock prices decreased today following the release of unsatisfactory second-quarter results by the top ride-sharing company in Southeast Asia.
At 1:20 p.m. Eastern Time, the stock had decreased by 5.9% following the announcement.
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Grab falls short.
The revenue for the quarter increased by 17%, or 23% when adjusted for currency fluctuations, reaching $664 million. However, this fell short of the estimated $673.2 million. The Gross Merchandise Volume (GMV), representing the total worth of all orders, showed a slower growth rate of 13%, amounting to $4.4 billion.
Grab’s number of users continued to increase, reaching 41 million users who complete transactions every month. Additionally, the company saw an improvement in profit margins, as reflected in its adjusted earnings before interest, taxes, depreciation, and amortization. EBITDA increased from $64 million to $81 million.
According to commonly recognized accounting standards, GAAP On a per-share basis, Grab’s loss decreased from $0.03 to $0.01 per share, in line with expectations.
CEO Anthony Tan mentioned that they anticipate the Southeast Asian economy to remain strong in the future. They plan to utilize their main product strategies to reach a larger user base in the region and also focus on managing costs effectively throughout their business operations.
What are Grab’s future plans?
Grab confirmed its previous forecast for the entire year, projecting a revenue increase of 14% to 17%, totaling between $2.7 billion and $2.75 billion. This figure fell short of the analyst’s average estimate of $2.77 billion.
Ultimately, the company is projecting an adjusted EBITDA between $250 million and $270 million, as well as expecting to generate a positive free cash flow throughout the year.
Grab’s rate of growth was noticeably less rapid than. Uber The top company in the world for providing ridesharing services experienced a 19% rise in total bookings.
Although there were no major concerns in Grab’s earnings report, the slower growth than anticipated is the reason for the stock’s decline today. To see an increase in the stock value, the company must achieve quicker revenue growth or enhance its profitability.
