Key Takeaways
- Grab Holdings posted lower-than-expected revenue and gave a soft full-year outlook as riders spent less on its service.
- The Asian ride-hailing firm reported the average amount of spending per user declined 6% from 2023.
- Both revenue and adjusted EBITDA guidance came up short of analysts’ forecasts.
Shares of Grab Holdings (GRAB) tumbled in intraday trading Thursday as the Asian ride-hailing firm missed revenue estimates and gave soft guidance as rider spending declined.
The Singapore-based company reported second-quarter revenue rose 17% year-over-year to $664 million, $16 million below the average estimate of analysts surveyed by Visible Alpha. The loss per share of $0.01 was in line with forecasts.
While on-demand users increased 19% to 36.7 million, the average amount of spending per user dipped 6% to $121, below estimates. Deliveries revenue climbed 11% to $356 million, Mobility revenue was up 19% to $247 million, and Financial Services revenue soared 54% to $60 million.
Full-Year Revenue, Adjusted EBITDA Guidance Below Estimates
The company sees full-year revenue in the range of $2.70 billion to $2.75 billion and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) between $250 million and $270 million. Both were less than expected.
The news sent Grab Holdings shares down 6% to $3.16 as of noon ET Thursday, moving into negative territory for the year.