Shares of Grab Holdings (GRAB 1.49%), a ride-sharing and food-delivery company, tumbled today after the company reported mixed results for its second quarter. While the company beat Wall Street's consensus top-line estimate, Grab's loss in the quarter was larger than expected.
The company also issued gross merchandise volume (GMV) guidance that disappointed investors. As a result, the food delivery stock was down by 12.5% as of 3:11 p.m. ET.
Grab's sales increased 79% from the year-ago quarter to $321 million, which was good enough to outpace analysts' average estimate of $273.1 million. The company said that strong sales from its mobility and deliveries segments were the reason for the spike in total revenue.
The company posted a non-GAAP loss per share of $0.15 in the quarter, which was far better than its loss of $2.89 in the year-ago quarter, but fell short of Wall Street's consensus estimate of a loss of $0.10.
But investors may have been the most disappointed with the company's revised full-year outlook for its gross merchandise GMV.
The company now expects 2022 GMV growth in the range of between 21% to 25% -- equal to about $19.8 billion at the midpoint of guidance -- down from its previous forecast of growth between 30% to 35%.
Grab's management said in a press release that slower GMV growth is the result of a strong U.S. dollar and because people continue to dine out more rather than use Grab's food-delivery service.
Investors have become impatient over the past year with high-growth companies that aren't profitable. And with the company cutting its GMV forecast for the the full-year, some investors appear to be content to sit on the sidelines with this stock.