Uber Rival Grab Misses Q2 Topline, Average User Spend Dips

Grab Holdings Limited GRAB reported fiscal second-quarter 2024 revenue growth of 17% year-on-year (23% year-on-year on a constant currency basis) to $664.00 million, missing the analyst consensus estimate of $669.25 million. 

EPS of $(0.01) was in line with the analyst consensus loss estimate. The stock price plunged after the results.

Also Read: Grab Follows Uber’s Lead, Acquires Chope To Expand Into Restaurant Bookings

Revenue for the Deliveries segment rose 11% year-on-year (17% year-on-year on a CC basis) to $356 million, driven by growing demand from its Food Deliveries business and increasing contributions from its Jaya and Advertising businesses.

Mobility revenue was $247 million, up 19% year-on-year (23% year-on-year on a CC basis), driven by solid growth in Mobility MTUs and transactions. 

Financial Services revenue rose 54% year-on-year to $60 million. 

On-Demand GMV grew 13% year-on-year to reach $4.43 billion. Delivery GMV grew by 9% year-on-year, and Mobility GMV grew by 20% year-on-year.

Group MTUs grew by 17% year-on-year to 40.9 million. On-Demand MTUs increased by 19% year-on-year to 36.7 million.

The average spend per user decreased by 6% year-on-year to $121.

Group Adjusted EBITDA grew to $64 million from negative $(17) million for the same period in 2023, driven by On-Demand GMV and revenue.

Group Chief Executive Officer and Co-Founder of Grab, Anthony Tan, said, “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.”

FY24 Outlook: Grab reiterated revenue of $2.70 billion–$2.75 billion vs. consensus of $2.77 billion. The company maintained an adjusted EBITDA of $250 million–$270 million.

Price Action: GRAB stock traded lower by 8.31% at $3.09 premarket at the last check Thursday.

Read Next:

• Walmart Q2 Earnings: E-commerce and Advertising Businesses Fuel Revenue And Profit Beat, Hikes Annual Guidance

Photo: Shutterstock