Grab, a Southeast Asian ride-hailing and food delivery service provider, recently cut its profit target after aggressively cutting costs.
Specifically, the company expects to achieve positive adjusted earnings before interest, tax, and depreciation (EBITDA) in the fourth quarter of this year, instead of the last 6 months of 2024 as previously expected.
Grab’s share price has plummeted for nearly 5 months and continued to drop more than 8% on February 23 after announcing the above adjustment plan.
Grab said adjusted EBITDA in the fourth quarter of last year fell to negative $111 million. This is much lower than the negative $147 million that analysts estimate. The company’s revenue quadrupled to $502 million, far exceeding expectations.
This Result Even Exceede the Company’s Estimate
Last November, Grab revised its EBITDA guidance for the second half of 2022 to negative $315 million, or a loss of $154 million in the fourth quarter.
Grab is one of a number of Southeast Rubber Plastic Manufacturers Email List Asian startups that are changing their strategy, focusing on profits instead of growth. Last week, Grab’s rival, GoTo Group, also cut its profit target by one year.
Meanwhile, Sea Limited has cut staff, closed trading floors in some markets such as India, Europe and Latin America to tighten cash flow.
This Result Even Exceeded the Company’s Estimate
Last November, Grab revised its EBITDA guidance for the second half of 2022 to negative $315 million, or a loss of $154 million in the fourth quarter.
Up to this point, Grab has not made mass layoffs, although its shares have plummeted from the floor price more than a year ago.
The company is trying to convince investors get CMB Directory to of its long-term earnings prospects, amid increasing competition and a tendency for users in the Southeast Asian market to tighten their spending.
