Grab Holdings Limited (NASDAQ: GRAB) is a Singapore-based technology company that maintains one of most popular delivery apps across Southeast Asia. The company offers delivery, mobility, and digital financial services in 480 cities across eight countries: Singapore, Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Thailand and Vietnam. Shares of the Southeast Asia delivery service are rallying 29% through early trading on Thursday, May 19, 2022. Over the past three months, Grab Holdings has seen average daily volume of 23.74 million shares. However, volume of 76.56 million shares or dollar volume of around $248.82 million, has already exchanged hands through early trading.
Shares of Grab Holdings are gaining after the company reported first quarter 2022 financial results, which showed strong growth in deliveries, mobility and financial services. Gross merchandise value (GMV) came in at $4.8 billion, which represents year-over-year growth of 32%. Overall, the company reported total revenue of $228 million, which was up 6% compared to the same period last year. Net loss for the quarter came in at $435 million, but that was a 35% improvement compared to Q1 last year.
Management noted that its mobility unit continues to rebound, as the number of monthly active drivers increased by 220,000. The financial services business saw total payment volume increase by 32% and revenues from the unit jumped 52% year-over-year.
Looking forward, management now estimates full-year 2022 revenue across its businesses to come in between $1.2 billion and $1.3 billion. This represents a year-over-year growth range between 30% and 35%.
“We are pleased to report strong first quarter results, with our core segments’ GMV and TPV outperforming the high-end of our guidance range. Revenue rose year-on-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 growing sustainably by being disciplined with our capital, optimizing our fixed cost base and tapering our incentive spend as the market rationalizes. We believe these actions will put us on a path to achieving segment adjusted EBITDA breakeven for deliveries by the end of 2023,” said Peter Oey, Chief Financial Officer of Grab.
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