Why the price jumped 24.11% today
- Grab Holdings Ltd (NASDAQ:GRAB) stock price rose 24.11% today. That is why.
Grab Holdings Ltd (NASDAQ:GRAB) stock price rose 24.11% today. Investors are reacting positively to the company’s financial results for the quarter ended March 31, 2022.
Here are the main highlights of the first quarter:
— Outperform first quarter GMV and POS forecasts for deliveries, mobility and financial services
— GMV of $4.8 billion, growing 32% year-over-year (YoY)
— Revenue of $228 million, up 6% year-on-year
— Loss for the period of $435 million, a 35% year-on-year improvement
– Grab expects the group’s annual GMV growth for the year 2022 to be between 30% and 35% and revenue for the year 2022 to be between $1.2 billion and $1.3 billion.
– As of March 31, 2022, Grab had cash on hand of $8.2 billion, down from $9 billion as of December 31, 2021, primarily due to net cash outflows from operating activities and the acquisition by Jaya Grocer.
“Our first quarter results demonstrate the resilience of the Southeast Asian economy as we weather the worst of the pandemic restrictions. We are optimistic that our business will continue to strengthen as more more countries will switch to life with Covid-19. During the quarter, we saw strong delivery revenue growth by expanding our selection of merchants to give users more reasons to choose Grab. Our Mobility activity has also rebounded and we expect it to gradually recover as Covid restrictions ease further and our active driver base grows.
— Anthony Tan, Group Managing Director and Co-Founder of Grab
“We are pleased to report strong first quarter results, with GMV and TPV from our core segments outperforming the high end of our guidance range. Revenue increased year-over-year, driven by strong GMV growth and higher commission rates1, while our Adjusted EBITDA margins improved from the fourth quarter. Looking ahead, we are focused on sustainable growth by being disciplined with our capital, optimizing our fixed cost base and reducing our incentive spend as the market rationalizes. We believe these actions will allow us to break even in segment Adjusted EBITDA for deliveries by the end of 2023.”
— Peter Oey, CFO of Grab
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.