Grab shares tumble 7% on weak outlook, Q2 revenue miss

SINGAPORE - Grab Holdings Limited (NASDAQ:GRAB) shares fell 7.4% after the Southeast Asian ride-hailing and delivery giant reported second quarter revenue that missed analyst estimates and provided disappointing full-year guidance.

Grab posted revenue of $664 million for Q2, up 17% year-over-year but below the consensus forecast of $675.24 million. The company's adjusted loss per share of $0.01 was in line with expectations.

While Grab's revenue grew strongly, driven by increases across all segments, it fell short of Wall Street projections. The company's outlook also disappointed investors, with full-year 2024 revenue guidance of $2.7-$2.75 billion coming in below the $2.78 billion analysts were expecting.

"We continued to harness the strength of the Grab ecosystem, and improved the usage frequency and reliability of our products and services," said Anthony Tan, Grab's CEO and Co-Founder. "Looking ahead, we are seeing continued strength in the Southeast Asian economy and will continue to leverage our key product initiatives to serve more users in the region, while also driving cost discipline across our business."

Grab's monthly transacting users grew 17% YoY to 40.9 million in Q2. On-demand GMV, which includes mobility and deliveries, increased 13% YoY to $4.4 billion.

The company's adjusted EBITDA improved to $64 million, compared to negative $17 million in the same period last year. Grab also reported positive adjusted free cash flow of $36 million for the quarter.

Despite the revenue miss and weak guidance, Grab highlighted its continued growth and improved profitability metrics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com