The stock market has been turbulent so far this year, and the Nasdaq Composite (^IXIC 0.10%) is still well off its highs and down significantly over the first two months of 2022. Thursday didn't make things better for the index as the Nasdaq fell almost 1% as of 1:45 p.m. ET.
A bunch of stocks listed on the Nasdaq made big moves, with some posting solid gains and others falling substantially. Grab Holdings (GRAB -0.85%) found itself on the losing end of the market Thursday afternoon, but Rimini Street (RMNI) managed to post a strong move higher. Below, let's take a closer look at both companies and why they're among the stocks with the largest percentage moves.
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Grab can't hold on
Shares of Grab Holdings plunged nearly 40% on Thursday afternoon. The Southeast "superapp" provider continued to see growth in some areas, but its numbers for the fourth quarter of 2021 weren't enough to satisfy its shareholders.
Grab's results were mixed. Gross merchandise value (GMV) rose 29% to $16.1 billion in 2021, including $4.5 billion during Q4. Although monthly transacting users averaged 24.1 million in 2021, 2% lower than in 2020, Grab ended the year with 27.7 monthly transacting users, as COVID-19 lockdown measures related to the omicron variant began to lift. Average spending per user rose 31% to $666, and revenue for Grab jumped 44% year over year to $675 million. However, losses ballooned at Grab, and the company posted adjusted pre-tax operating losses that were worse than many had expected.
Grab's business saw a big bifurcation. Its delivery business soared during the pandemic as demand from consumers who were locked down was strong. Financial services and new initiatives for the company also did well. However, the mobility segment saw double-digit percentage declines in GMV.
Investors aren't pleased to see how much Grab is having to spend to generate business. Eventually, the company will have to prove its business model can be profitable, and shareholders seem to be increasingly impatient for Grab to do so.
Rimini gets a move higher
Elsewhere, shares of Rimini Street were up nearly 30% Thursday afternoon. The third-party enterprise software support services provider reported solid gains that helped build some optimism after a tough period for the stock.
Rimini's growth in Q4 2021 was modest but welcome. Revenue rose 13% to $99.3 million, with annual recurring revenue rising at a similar pace. Rimini had 15% more clients than it had 12 months ago, approaching 2,850, and revenue retention rates hit 92%.
Most notably, improving margins helped boost profits substantially. Adjusted net income soared sevenfold to $77.8 million, and that worked out to earnings of $0.77 per share. Those numbers, however, included an adjustment to account for its deferred tax assets -- an item that isn't likely to recur. Even so, operating income was nearly triple year-earlier levels.
Rimini expects to keep seeing its business expand. Full-year sales in 2022 should come in between $400 million and $410 million, including first-quarter sales of $95 million to $96 million.
Most investors haven't paid much attention to Rimini, with its launch on the public markets through a special-purpose acquisition company (SPAC) merger having failed to generate any lasting gains for early investors. Nevertheless, it appears that Rimini might be getting some momentum back. That could fare well for those who are just now taking a look at the company.
