Shares of Southeast Asian superapp Grab Holdings (NASDAQ:GRAB) are ticking higher today after the company delivered promising first-quarter numbers, and hiked its financial outlook.
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Grab’s Promising Q1 Performance
Grab’s top line expanded by 24.4% year-over-year to $653 million. Additionally, its adjusted EBITDA improved by $129 million to a record $62 million. During the quarter, its on-demand GMV (gross merchandise value) ballooned by 18% to $4.2 billion.
This performance was driven by Grab’s focus on product-led growth, affordability, and platform reliability. Importantly, its focus on profitable growth is paying off; with the company clocking its ninth consecutive quarter of improved adjusted EBITDA. Moreover, the company experienced growth across its business segments. Its Deliveries revenue soared by 19% on the back of an uptick in food deliveries and advertising. Grab’s Mobility segment clocked 27% gains, primarily from robust domestic demand as well as growth in inbound international tourist trends.
Grab remains focused on improving its category position and leveraging the scale of its operations. For Fiscal year 2024, it now expects revenue growth of 14%-17%. The company anticipates that adjusted EBITDA will be between $250-$270 million, up from the prior estimate of $180-$200 million.
Is GRAB a Buy, Sell, or a Hold?
Grab’s share price has ticked up by nearly 9.4% over the past six months. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average GRAB price target of $4.29. However, analysts’ views on the company could see changes following its earnings report.
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