Grab's Shares Slide After Its Revenue Outlook Trails Experts' Estimates

Grab Holdings' shares tumbled after it predicted full-year revenue that trailed estimates, suggesting caution around a South-east Asian ride-hailing and food delivery market where Gojek parent GoTo Group remains a formidable rival.

- 

The Singapore-based company expects a 19 per cent to 22 per cent rise in revenue to US$3.33 billion (S$4.46 billion) to US$3.4 billion in 2025, just shy of the US$3.5 billion average of analysts' projections polled by Bloomberg.

The company logged a smaller than expected 23 per cent decline in quarterly net income.

But Grab also spent almost 30 per cent more on incentives to boost usage of rides, meal delivery and financial services during the period, reflecting growing competition on multiple fronts.

Its New York-listed shares fell around 11 per cent during US post-market trading.

"We always take a more of a conservative view when we give guidance at the beginning of the year," Grab's chief financial officer Peter Oey said in an interview, adding that the company's outlook has often improved as the year progresses. "We should be positive net income in 2025," he said.

Regarding the surge in incentives in the quarter just ended, Mr Oey later said on an earnings call that such costs move up and down and that the fluctuation is intentional.