9-11-2023 (SINGAPORE) Singapore-based Grab announced its adjusted core profit for the third quarter, marking its first ever, driven by cost-reduction initiatives and robust demand for its food delivery and ride-share services. Following the news, Grab shares experienced a surge of up to 11 percent in premarket trading. The company also reported better-than-expected quarterly revenue and narrowed its projected core loss for the full year.
Earlier this year, Grab implemented a significant restructuring plan aimed at reducing costs. The measures included optimizing its cloud expenses and adjusting consumer and worker incentives. In June, the company underwent its largest round of layoffs since the onset of the pandemic, resulting in a reduction of approximately 1,000 positions, which accounted for around 11 percent of its workforce.
For the third quarter ending September 30, Grab reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$29 million. This figure surpassed analysts’ estimates. Furthermore, the company experienced a remarkable 61 percent surge in revenue, reaching US$615 million, outperforming the projected figure of US$590.6 million based on data from the London Stock Exchange Group (LSEG).
Looking ahead, Grab has revised its revenue forecast for 2023, expecting it to fall within the range of US$2.31 billion to US$2.33 billion. This update reflects an increase compared to the previous forecast of between US$2.2 billion and US$2.3 billion. The projected range for the full-year adjusted core loss has also been revised to US$20 million to US$25 million, down from the earlier estimate of US$30 million to US$40 million.
Grab completed its listing on the Nasdaq in December 2021 through a merger with a special-purpose acquisition company, marking a significant milestone for the company.
