What happened
Shares of Grab (GRAB) were up 11.1% as of 2:30 p.m. ET Wednesday, according to data provided by S&P Global Market Intelligence, after the delivery app specialist announced strong quarterly results and raised its profitability outlook for the year.
So what
On the former, Grab's second-quarter revenue skyrocketed 77% year over year, to $567 million, translating to a net loss of $185 milion, or $0.03 per share. Analysts, on average, were expecting a wider net loss of $0.05 per share on revenue closer to $546 million.
Driving Grab's top line was a 118% increase in deliveries revenue, to $292 million, helped by a reduction in incentives, 4% growth in gross merchandise volume (GMV), and selective changes in the business model for one of the company's key markets. GrabUnlimited subscribers increased 43% year over year, accounted for nearly a third of all deliveries GMV, and spent around 3.8 times as much more on food deliveries than non-subscribers.
Now what
Grab reiterated its full-year 2023 revenue guidance for a range of $2.2 billion to $2.3 billion, but also pulled forward its target for achieving breakeven adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) results in the third quarter of 2023 (compared to Q4 previously). Grab also raised its outlook for adjusted EBITDA for the full year to be in the range of negative $40 million to negative $30 million, compared to previous guidance for a range of negative $235 million to negative $195 million.
In the end, this is a straightforward beat and raise from Grab, and the stock is responding accordingly.
