With its impressive performance for both the fourth quarter and the full fiscal year, Grab has shared a positive outlook for the current quarter and for 2023.
Grab Holdings Ltd (NASDAQ: GRAB), a Singapore-based provider of ride-sharing and food delivery services, has seen a rally in its shares in the pre-market stage as it reveals better-than-expected fourth-quarter revenue. While shares of the company are currently pegged at $3.63 with growth of 3.71%, they were up as much as 6% hours earlier.
The company, which has maintained its dominance as the largest food delivery company in Southeast Asia, said its fourth-quarter 2022 revenue grew 310% year-over-year (YoY) to $502 million. Complementing this growth, it said its fiscal 2022 revenue soared 112% year-over-year to $1.433 billion.
Grab was one of the main beneficiaries of the COVID lockdowns, however events in the broader global economy have seen it lose its grip over the past year. The company said its total loss for the fourth quarter improved by 64% year-over-year to $391 million. The company even outperformed the full year, as the loss improved 51% year-over-year to $1.740 billion.
“We achieved these results by focusing on capturing the uptick in Mobility demand, optimizing our costs, reducing our cost of service, and innovating in products and services that drive retention and engagement within our ecosystem. As we look to the future, we will remain focused on driving sustainable growth and improving the efficiency of our ecosystem,” said Anthony Tan, Group CEO and co-founder of Grab.
The company also posted significant business milestones during the period, including a 14% growth in the number of users making monthly transactions. The company has continued to face significant competition from key rivals, including Indonesia’s GoTo Gojek Tokopedia PT Tbk (IDX: GOTO), which also turned profitable according to its latest report.
With consumer spending falling sharply due to inflationary growth, the competition for market share has been more daunting than ever.
Grab and the positive revenue forecast
With its impressive performance for both the fourth quarter and the full fiscal year, Grab has shared a positive outlook for the current quarter and for 2023. According to the company, it now expects its total revenue to be between $2.2 billion and $2.3 billion for the fiscal year. If this figure is reached, it will represent a massive 54% to 60% year-on-year growth.
The company also expected its breakeven point to fall in the fourth quarter of this year, while its estimated timeline for adjusted EBITDA is pegged at the second half of next year. For a company in a highly competitive market, Grab has gotten rid of some cash-intensive programs to ease its operating costs.
The company is now reducing its general promotions while moving cautiously with respect to incentives for drivers. While these cost-cutting measures may seem drastic, the company postulates that they will help drive more sustainable growth overall.
“This sets us up for a strong 2023 as we continue to focus on growing sustainably,” said Chief Financial Officer Peter Oey. saying.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-life applications of blockchain technology and innovations to drive mainstream acceptance and global integration of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based sites and media. Benjamin Godfrey is a lover of sports and agriculture.
