Shares of Southeast Asian superapp Grab Holdings (NASDAQ:GRAB) gained nearly 9% in the early session today after its revenue in the third quarter jumped by 61% year-over-year to $615 million. The figure exceeded estimates by $20 million. EPS of $0.02 came in wider than expectations by $0.01.
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Impressively, at $29 million, this was the first quarter of adjusted EBITDA profitability for the company. Similarly, its net loss narrowed by 71% year-over-year to $99 million. During the quarter, gains in Mobility and Deliveries helped Grab increase its GMV (Gross Merchandise Value) by 5% year-over-year to $5.34 billion. Further, MTUs (Monthly Transacting Users) surged by 14% over the prior year period to 36 million.
Moreover, the company’s Financial Services revenue increased by 156% year-over-year to $50 million on the back of improved monetization in its payments business and contributions from other services, including lending.
The company remains focused on improving its marketplace efficiency and providing more affordable services. Driven by the healthy performance during the quarter, Grab has revised its outlook for Fiscal year 2023. It now expects revenue to be in the range of $2.31 billion to $2.33 billion, compared to the previous expectations between $2.20 billion and $2.30 billion. Adjusted EBITDA for the year is anticipated to be between -$20 million and -$25 million versus the prior outlook of between -$30 million and -$40 million.
Is GRAB a Good Stock to Buy?
Overall, the Street has a Strong Buy consensus rating on Grab. The average GRAB price target of $4.77 implies a mouth-watering 49.5% potential upside.
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