Grab Holdings Raises Annual Revenue Forecast, Stocks Surge

Grab Holdings, based in Singapore and traded under NASDAQ:GRAB, has updated its revenue forecast for the fiscal year 2024, indicating a stronger-than-expected performance in its core segments such as food delivery and ride-hailing. Following this announcement made on Monday, the company’s shares rose by 9% in after-hours trading in the United States.

The technology platform now expects its revenue to be between $2.76 billion and $2.78 billion, an increase from its previous estimate of $2.70 billion to $2.75 billion. This revision comes as Grab's food delivery service shows recovery from the demand drop experienced during the pandemic, suggesting a more positive economic environment along with a resurgence in consumer spending.

Grab's CEO, Anthony Tan, expressed confidence regarding growth prospects in Southeast Asia, emphasizing that the company is ready to meet the increasing consumer demand. Tan stated, "We continue to remain optimistic about the long-term growth outlook for Southeast Asia and are working tirelessly to capture the strong user demand trends."

In addition to the revised revenue forecast, Grab maintains its expectation of achieving positive free cash flow for the full fiscal year. The company also reported third-quarter revenue of $716 million, exceeding the analyst consensus of $700.8 million provided by Visible Alpha. This performance demonstrates that the company is gaining momentum as it capitalizes on the economic recovery in the region.