Grab forecasts 2023 revenue above estimates on demand boom

Grab forecasts 2023 revenue above estimates on demand boom
Grab staff wait for orders inside the Central World mall in Bangkok, Thailand, Mar 22, 2020. (File photo: REUTERS/Soe Zeya Tun)

Grab, Southeast Asia’s biggest ride-hailing and food delivery firm, on Thursday (Feb 23) forecast its annual revenue above estimates on bets that consumers will continue to rely on its services following a pandemic-driven demand boom.

Grab and rivals such as Indonesia’s PT GoTo Gojek Tokopedia Tbk and Uber benefited from higher demand for delivery services during the COVID-19 pandemic and consumers have continued to rely on those services, while reopening of offices and travel have boosted their rideshare businesses.

Decade-old Grab, a household name in eight Southeast Asian countries, forecast its 2023 revenue between US$2.20 billion and US$2.30 billion. Analysts have forecast annual sales to scale US$1.97 billion, according to Refinitiv data.

The company has advanced its forecast for group break-even on an adjusted core earnings basis to the fourth quarter of 2023, from its prior expectations of the second half of 2024.

Grab also delivered an about four-fold revenue surge in the fourth quarter to US$502 million, helped by higher demand and a reduction in incentives.

Source: Reuters/fh