Singapore’s Grab raises full-year revenue forecast, shares jump By Reuters
(Reuters) – Singapore Grab Holdings (NASDAQ: ) raised its 2024 revenue forecast on Monday, as it expects strong growth in its food delivery and horse-riding businesses.
Shares of the US-listed company jumped more than 10% in extended trading.
The company expects revenue in the range of $2.76 billion to $2.78 billion, compared to its previous estimate of between $2.70 billion and $2.75 billion.
Its core food delivery business has been recovering from a post-pandemic drop in demand as consumers increase their spending budgets in what they see as a sign of an improving economy.
“We remain committed to the long-term vision of Southeast Asia’s growth, and are firing on all cylinders to capture strong user demand trends,” said Grab CEO Anthony Tan.
The company has been trying to introduce cheaper options for its ride-hailing services to attract price-conscious customers. On the other hand, the company was trying to promote its premium offerings and increase its earnings.
Grab still expects good free cash flow for the rest of the year.
It reported third-quarter revenue of $716 million, beating Visible Alpha’s estimates of $700.8 million.
Revenue in the delivery segment grew 16% to $380 million, beating estimates of $374.2 million.
Revenue in its fastest-growing finance segment is also beating estimates.
Profit for the quarter came in at $15 million, compared to a loss of $99 million, last year.
