Grab forecasts annual revenue below estimates as platform momentum slows
A Grab logo is pictured at the Money 20/20 Asia Fintech Trade Show in Singapore on Mar 21, 2019. (Photo: REUTERS/Anshuman Daga)
Singapore's Grab forecast fiscal 2026 revenue below Wall Street expectations on Wednesday (Feb 11), signalling slower momentum in the tech firm's core businesses of ride hailing and deliveries as consumers grapple with economic uncertainty.
Shares of the company fell around 4 per cent in extended trading.
Sticky inflation levels amid major Southeast Asian markets, paired with the fallout of the US tariff policies, has prompted consumers to become more selective with spending, as they curb discretionary budgets and look for cost-saving options for regular purchases.
Grab has leveraged its Saver platform to lure frugal customers with discounts, offers, and bundling to bring down delivery fees in an attempt to keep up with rapidly changing spending patterns.
"We're going to continue to make our rides affordable, because that's really one of the fastest growing businesses in terms of adding new users into the platform today," Chief Financial Officer Peter Oey told Reuters.
He added that this year, the company plans to double down on its grocery business, which is growing 1.7 times faster than its food delivery segment.
The company also announced a US$500 million share buyback programme.
Separately, Grab said it will acquire US digital financial services company Stash Financial in a deal initially valued at US$425 million, where half the equity interest will be paid at closing.
The remaining interest will be made at "fair market value" over three years after the deal's closing, the company said.
The company expects annual revenue between US$4.04 billion and US$4.10 billion, compared with estimates of US$4.13 billion, according to data compiled by LSEG.
It forecast annual adjusted earnings before interest, taxes, depreciation and amortisation of between US$700 million and US$720 million, while analysts expect US$721.7 million.
Grab reported fourth-quarter revenue of US$906 million, missing estimates of US$940.7 million.
It also forecast revenue to grow 20 per cent compounded annually from 2025 to 2028.
