Ride-hailing Grab's revenue misses estimates

By Dat Nguyen August 16, 2024 | 04:21 am PT

A Grab driver looks at his phone in Da Nang City. Photo by Shutterstock/David Bokuchava

Grab, the largest ride-hailing and delivery company in Southeast Asia, reported slower-than-expected revenue growth for the second quarter, leading to a drop in its stock price.

The Singapore-based firm saw revenue rising 17% to US$664 million, 1.9% lower than analysts’ average estimate, according to data from the London Stock Exchange Group.

Its sales from deliveries – its biggest business – went up 11% to $356 million, lower than investment research firm Visible Alpha’s estimate of $362.1 million. Ride-share revenue grew 14%, also below expectations.

But the company remained optimistic about its performance. "To us, it wasn’t a miss," Grab chief financial officer Peter Oey said, as cited by Bloomberg. "We’re driving more users to the platform. We’re also launching more new products."

Shares of Grab closed Thursday with a 7.42% drop. They have plunged 69% since the company went public through a U.S. blank-check company in late 2021.

Grab had repurchased about $131 million in company stock as of June-end, part of a $500 million buyback announced in February, Reuters reported.