Grab beats quarterly revenue estimates on resilient consumer spending
A Grab logo is pictured at the Money 20/20 Asia Fintech Trade Show in Singapore Mar 21, 2019. (Photo: Reuters/Anshuman Daga)
Grab beat analysts' expectations for third-quarter revenue on Monday (Nov 3), supported by robust consumer spending on ride-hailing and food-delivery services as its platform expansion draws in additional users.
Grab's push to evolve into a "superapp", integrating food and grocery delivery, ride-hailing and financial services, has gained strong traction among consumers looking for a one-stop shop for their daily mobility and lifestyle needs as they navigate an uncertain economy shaped by tariffs.
Grab has also focused on more affordable ride-hailing and food-delivery options to attract cost-conscious consumers in an attempt to give itself a buffer against spending downturns.
CFO Peter Oey told Reuters that in the deliveries segment, about a third of new monthly transacting users come from the affordable channels, and about 40 per cent of them are upselling into more standard products.
"What we're seeing is more engagement from these saver platforms or these affordable products, and also they're spending more frequently at the same time as we are able to upsell them," Oey said.
As competition intensifies across Southeast Asia's service sector, Grab is looking to leverage its ride-hailing platform to expand into the autonomous robotaxis market, a segment analysts expect to see strong growth in the coming years.
The company also raised the lower end of its annual revenue forecast to US$3.38 billion from US$3.33 billion, while leaving the upper end unchanged at US$3.40 billion.
Grab reported revenue of US$873 million during the period, compared with analysts' average estimate of US$872.9 million, according to data compiled by LSEG.
The company also raised its annual adjusted earnings before interest, taxes, depreciation and amortisation forecast to between US$490 million and US$500 million, from its previous forecast of between US$460 million and US$480 million.
Third-quarter revenue for Grab's deliveries segment stood at US$465 million, compared with estimates of US$470 million.
