Grab Holdings Limited (GRAB) reported mixed fiscal second-quarter 2024 results, with revenue growth falling short of analyst expectations. The company’s revenue increased by 17% year-on-year (23% year-on-year on a constant currency basis) to $664.00 million, failing to meet the consensus estimate of $669.25 million. Despite the revenue miss, Grab’s earnings per share (EPS) of $(0.01) aligned with the analyst consensus loss estimate. However, the stock price plunged following the announcement of these results.
The company’s Deliveries segment saw revenue rise by 11% year-on-year (17% year-on-year on a constant currency basis) to $356 million, fueled by increasing demand for its Food Deliveries business and contributions from its Jaya and Advertising ventures. Mobility revenue climbed by 19% year-on-year (23% year-on-year on a constant currency basis) to $247 million, driven by strong growth in Mobility monthly active users (MTUs) and transactions. Financial Services revenue exhibited a robust increase of 54% year-on-year to $60 million.
Grab’s overall Gross Merchandise Value (GMV) grew by 13% year-on-year, reaching $4.43 billion. The Delivery GMV saw a 9% year-on-year increase, while Mobility GMV surged by 20% year-on-year. Group MTUs climbed by 17% year-on-year to 40.9 million, with On-Demand MTUs increasing by 19% year-on-year to 36.7 million. However, the average spend per user declined by 6% year-on-year to $121.
Despite the revenue miss, Grab’s Group Adjusted EBITDA saw a significant improvement, reaching $64 million from a negative $(17) million in the same period of 2023. This growth was attributed to increases in On-Demand GMV and revenue. Looking ahead, Anthony Tan, Grab’s Group Chief Executive Officer and Co-Founder, expressed optimism about the Southeast Asian economy and the company’s ability to leverage its key product initiatives to serve more users in the region while maintaining cost discipline.
For fiscal year 2024, Grab reiterated its revenue forecast of $2.70 billion to $2.75 billion, slightly below the consensus estimate of $2.77 billion. The company maintained its adjusted EBITDA target of $250 million to $270 million. Following the earnings announcement, GRAB stock experienced a decline of 8.31% to $3.09 premarket.
