Bloomberg: Grab Holdings Ltd. reported a better-than-expected 79% revenue increase, buoyed by resilient demand from consumers who continued to hail rides and order food despite rising inflation.
Revenue climbed to $321 million in the second quarter, the Singapore-based company said in a statement on Thursday. That beat the $273.1 million average of analysts’ estimates compiled by Bloomberg. Grab’s net loss narrowed to about $547 million as it fights to reduce cash burn after spending several years locked in an expensive battle for dominance in the region.
Grab, which has been one of Southeast Asia’s hottest startups and is led by Anthony Tan, has struggled since it went public via a merger with a US blank-check company last year. Its shares have lost more than 60% of their value since then as losses piled up during pandemic-era lockdowns and money-losing companies have fallen out of favor with investors.
Now Tan must navigate through an era of rising inflation that could dampen demand just as Grab is trying to emerge from the Covid challenges. The company has faced increasing competition from GoTo Group and Sea Ltd.
Grab said revenue this year is expected to be $1.25 billion to $1.3 billion, compared with its previous forecast of $1.2 billion to $1.3 billion. The company said its gross merchandise value will expand 21% to 25% this year, compared with 30% to 35% it had projected previously.