Shares of Grab Holdings (GRAB -1.30%) surged 24% on Thursday after the ride-hailing and delivery platform delivered stronger-than-expected growth metrics.
Grab's revenue rose 6% year over year to $228 million in the first quarter. The Singapore-based company saw its monthly transacting users grow by 10% to 30.9 million. Those users also spent more on its platform, leading its gross merchandise value (GMV) to jump 32%, to $4.8 billion.
"We delivered strong top-line growth in deliveries as we expanded our merchant selection to give users more reasons to choose Grab," CEO Anthony Tan said in a press release. "Our mobility business also rebounded, and we expect it to gradually recover as COVID restrictions ease further and our active driver base increases."
Still, Grab spent heavily on incentives to entice more customers, drivers, and merchants to join its network. Its consumer and partner incentives increased 85% and 55%, respectively, to $344 million and $216 million.
Grab's net loss, in turn, checked in at a sizable $435 million. That was, however, a 35% improvement compared to the year-ago quarter.
Management expects Grab's GMV to grow by 30% to 35% in 2022. The company also forecast revenue of $1.2 billion to $1.3 billion, which would represent year-over-year growth of roughly 85%.
Additionally, chief financial officer Peter Oey said Grab intends to taper its spending on incentives as the pandemic subsides. That will put its delivery business on track to break even on an adjusted EBITDA basis by the end of 2023.
"Our first-quarter results are a testament to the resilience of Southeast Asia's economy as we move past the worst of the pandemic restrictions," Tan said. "We are optimistic that our business will continue to strengthen as more countries pivot to living with COVID-19."