Grab Holdings Raises Fiscal 2024 Revenue Forecast

(Reuters) – Singapore's Grab Holdings (NASDAQ:GRAB) increased its forecast for fiscal 2024 revenue on Monday, expecting strong growth in its food delivery and ride-hailing sectors.

U.S.-listed shares of the company surged over 10% in extended trading.

The company now expects revenue between $2.76 billion and $2.78 billion, up from the previous estimate of $2.70 billion to $2.75 billion.

Its core food delivery business has rebounded from a post-pandemic slump as consumers broaden their discretionary spending in response to economic recovery.

> "We remain bullish on the long-term growth outlook of Southeast Asia, and are firing on all cylinders to capture the strong user demand trends," said Grab CEO Anthony Tan.

To attract budget-conscious customers, the company is exploring cheaper ride-hailing options while also promoting premium services to enhance its earnings.

Grab is expected to maintain a positive free cash flow for the full year.

The company reported third-quarter revenue of $716 million, surpassing Visible Alpha's estimate of $700.8 million. Revenue in the deliveries segment grew 16% to $380 million, exceeding estimates of $374.2 million.

Additionally, revenue in its fastest-growing financial sector also surpassed expectations. The profit for the quarter amounted to $15 million, a recovery from a $99 million loss last year.