Grab on Thursday (Nov 9) reported an adjusted core profit for the third quarter, its first ever, driven by cost-reduction measures and strong demand for its food delivery and ride-share services.
Shares surged as much as 11 per cent in premarket trading after the company posted better-than-expected quarterly revenue and narrowed its core loss expectations for the full year.
Earlier this year, Grab announced a major restructuring to lower costs, with measures including cuts to its cloud bill and consumer and worker incentives.
In June, the company reduced around 1,000 roles, or about 11 per cent of its workforce, in its biggest round of layoffs since the start of the pandemic. Grab reported adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of US$29 million for the third quarter ended Sep 30.
Revenue jumped 61 per cent to US$615 million, beating analysts’ estimate of US$590.6 million, according to LSEG data.
Grab now expects 2023 revenue in the range of US$2.31 billion to US$2.33 billion, compared with its earlier forecast of between US$2.2 billion and US$2.3 billion.
The range for full-year adjusted core loss is now US$20 million to US$25 million, compared to between US$30 million and US$40 million earlier.
Grab listed on the Nasdaq in December 2021 through a merger with a special-purpose acquisition company.