Historic Profit Milestone for Grab:

Grab, the Southeast Asian ride-hailing giant, announced its first-ever profitable quarter, marking a significant turnaround in its financial performance.

The company reported a profit of $11 million, a substantial improvement from the $391 million loss recorded in the same period a year ago.

Factors Driving Profitability:

Grab attributes its profitability to several factors, including an improvement in Group adjusted EBITDA, fair value changes in investments, and reduced share-based compensation expenses.

Financial Performance Highlights:

Quarterly revenue reached $653 million, surpassing analysts’ estimates.

Full-year losses for 2023 totaled $485 million, down 72% from the previous year’s $1.74 billion loss.

Diversified Business Portfolio:

Screenshot 2024 02 23 at 10.56.17 AM

Beyond ride-hailing, Grab offers financial services such as payments and insurance, as well as delivery services for food, groceries, and packages.

Optimistic Outlook and Growth Trajectory:

Grab CFO Peter Oey expressed optimism about the company’s growth prospects, highlighting strong demand in the mobility sector and robust momentum in the deliveries business.

The company aims to repurchase up to $500 million worth of class A ordinary shares, signaling confidence in its financial position and future performance.

Shift Towards Profitability:

Grab’s transition to profitability marks a significant shift from its previous years of operation, during which it incurred substantial losses.

Tech startups often prioritize growth over profitability in their initial years, but macroeconomic uncertainties have prompted a renewed focus on profitability and cost efficiency.

Reduced Incentives and Focus on Profitability:

Grab has reduced total incentives, including partner and consumer incentives, to 7.3% of the total value of goods sold, compared to 8.2% in the same period last year.

The company is tapering off incentives as it aims to drive up profitability and improve the health of its marketplace.

Future Revenue Expectations and Market Performance:

Grab anticipates revenue between $2.70 billion and $2.75 billion for 2024, slightly lower than analysts’ consensus.

Despite its profitability milestone, Grab’s share price experienced a significant decline, closing 8.41% lower on Thursday compared to its Nasdaq listing price in December 2021.

(report: cnbc)

You May Have Missed These:

henley passport index india ranks 85

brahmos deal rs.19000 crore for the indian navy

google to manufacture smartphones in india by next quarter

avid reader?dont miss out on reading these best sellers

byju’s to fire byju?

oberoi group to surrender shimla’s 5-star hotel

farmer’s mega protest-calling for black friday today

ameen sayani iconic sho “binaca geet mala” presenter passed away