Grab Holdings Ltd. (GRAB.O) surpassed first-quarter revenue projections due to rideshare and food-delivery growth.
Visible Alpha reported that March revenue more than doubled to $525 million, above analysts’ $504.3 million expectation.
In tumultuous pre-opening trading, Singapore-based firm shares fell 2%.
As economies recover from COVID-19, consumer spending on discretionary services rises, as Grab’s strong results show.
Delivery revenue rose 203% to $275 million, surpassing Visible Alpha analysts’ $263.1 million projection. In addition, rideshare revenue climbed 72% to $194 million compared to $195.2 million.
Gross merchandise value rose 3% to $4.96 billion. Grab is simplifying and expects positive adjusted earnings before interest, taxes, depreciation, and amortization in the fourth quarter of 2023. It reduced its cloud bill and froze employment earlier this year. It also cut consumer and worker incentives.