Grab (GRAB) Stock: Why The Price Surged 24.11% Today

By Amit Chowdhry ● May 19, 2022
  • The stock price of Grab Holdings Ltd (NASDAQ: GRAB) increased by 24.11% today. This is why.

The stock price of Grab Holdings Ltd (NASDAQ: GRAB) increased by 24.11% today. Investors are responding positively to the company’s financial results for the quarter ended March 31, 2022.

These were the Q1 key highlights:

— Outperformed Q1 GMV and TPV guidance for deliveries, mobility and financial services

— GMV of $4.8 billion, grew 32% year-over-year (YoY)

— Revenue $228 million, up 6% YoY

— Loss for the period of $435 million, a 35% improvement YoY

— Grab expects full-year 2022 YoY growth in Group GMV to be between 30% and 35% and full-year 2022 revenue to be between $1.2 billion and $1.3 billion.

— As of March 31, 2022, Grab had cash liquidity of $8.2 billion, a decrease from $9 billion as of December 31, 2021, primarily due to net cash outflow from operating activities and the acquisition of Jaya Grocer.

KEY QUOTES:

“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. We are optimistic that our business will continue to strengthen as more countries pivot to living with Covid-19. In the quarter, we delivered strong top-line growth in deliveries as we expanded our merchant selection to give users more reasons to choose Grab. Our mobility business also rebounded and we expect it to gradually recover as Covid restrictions ease further and our active driver base increases.” 

— Anthony Tan, Group Chief Executive Officer and Co-Founder of Grab

“We are pleased to report strong first quarter results, with our core segments’ GMV and TPV outperforming the high-end of our guidance range. Revenue rose year-on-year, driven by strong GMV growth and higher commission rates1, while our adjusted EBITDA margins improved from the fourth quarter. Looking ahead, we are focused on growing sustainably by being disciplined with our capital, optimizing our fixed cost base and tapering our incentive spend as the market rationalizes. We believe these actions will put us on a path to achieving segment adjusted EBITDA breakeven for deliveries by the end of 2023.” 

— Peter Oey, Chief Financial Officer of Grab

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.