The largest ride-hailing and food delivery company in Southeast Asia, Grab Holdings Ltd., said on Tuesday that as it moves faster toward profitability, it expects to break even on adjusted EBITDA by the second half of 2024.
For the second half of 2022, its group adjusted EBITDA loss is anticipated to be $380 million, which would represent a 27 per cent improvement over the first half of the year.
"Our cash position is not something that we take for granted. We will maintain a prudent stance in how we allocate and deploy our capital with this cash preservation on top of mind," Chief Financial Officer Peter Oey told analysts on Grab's first investor day.
Grab also stated that, on a constant currency basis, it anticipates 2023 group revenue to increase by 45 per cent to 55 per cent year over year.
By 2026, it anticipates its digibank operations to become profitable.
Investor pressure has been mounting on Grab, which listed on the Nasdaq in December following a record $40 billion merger with a blank-check company, to reduce losses from its decade-old business.
As investors reevaluate growth prospects in the face of rising interest rates and slowing economies, Grab's shares have lost 61 per cent of their value so far this year, tracking a global collapse in tech valuations.
"We’ve been firing on all cylinders to improve our profitability trajectory and deliver growth in a sustainable manner and the new targets we’ve shared today reflect that," said Anthony Tan, CEO and co-founder.
In a recent interview with Reuters, Grab stated that while hiring selectively and limiting its financial service ambitions, the company does not anticipate having to implement mass layoffs as some competitors have done.
Grab reported a second-quarter loss of $572 million, down from $801 million a year earlier, last month. However, it reduced its forecast for gross merchandise volume for the year, blaming a strong dollar and declining demand for food delivery.
More than five million drivers and two million merchants are registered on the Grab platform, which operates in 480 cities across eight nations.
Similar to its rivals, including GoTo, Indonesia's largest tech company, Grab benefited from the COVID-19 pandemic's explosion in food delivery services, but its core ride-hailing business suffered and is still not back to pre-COVID levels.
(Source:www.economictimes.com)
For the second half of 2022, its group adjusted EBITDA loss is anticipated to be $380 million, which would represent a 27 per cent improvement over the first half of the year.
"Our cash position is not something that we take for granted. We will maintain a prudent stance in how we allocate and deploy our capital with this cash preservation on top of mind," Chief Financial Officer Peter Oey told analysts on Grab's first investor day.
Grab also stated that, on a constant currency basis, it anticipates 2023 group revenue to increase by 45 per cent to 55 per cent year over year.
By 2026, it anticipates its digibank operations to become profitable.
Investor pressure has been mounting on Grab, which listed on the Nasdaq in December following a record $40 billion merger with a blank-check company, to reduce losses from its decade-old business.
As investors reevaluate growth prospects in the face of rising interest rates and slowing economies, Grab's shares have lost 61 per cent of their value so far this year, tracking a global collapse in tech valuations.
"We’ve been firing on all cylinders to improve our profitability trajectory and deliver growth in a sustainable manner and the new targets we’ve shared today reflect that," said Anthony Tan, CEO and co-founder.
In a recent interview with Reuters, Grab stated that while hiring selectively and limiting its financial service ambitions, the company does not anticipate having to implement mass layoffs as some competitors have done.
Grab reported a second-quarter loss of $572 million, down from $801 million a year earlier, last month. However, it reduced its forecast for gross merchandise volume for the year, blaming a strong dollar and declining demand for food delivery.
More than five million drivers and two million merchants are registered on the Grab platform, which operates in 480 cities across eight nations.
Similar to its rivals, including GoTo, Indonesia's largest tech company, Grab benefited from the COVID-19 pandemic's explosion in food delivery services, but its core ride-hailing business suffered and is still not back to pre-COVID levels.
(Source:www.economictimes.com)
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