Grab raises annual revenue forecast

Singapore's Grab Holdings has raised its forecast for fiscal 2024 revenue, as the firm anticipates robust growth in its food delivery and ride-hailing business services during the busy holiday season.

US-listed shares of the company jumped more than 10% in extended trading.

Grab's mainstay food delivery business has been recovering from a post-pandemic slump in demand as consumers increase their discretionary spending budgets in a sign of economic easing.

Grab CEO Anthony Tan said the firm remains bullish on the long-term growth outlook of Southeast Asia, and is firing on all cylinders to capture the strong user demand trends.

The company expects revenue in the range of 2.76 billion to $2.78 billion, compared with its prior projection of between $2.70 billion and $2.75 billion.

Grab has been attempting to introduce cheaper options for its ride-hailing services to woo price-wary customers. On the other hand, the firm has been trying to promote its premium offerings as well to boost its earnings.

Grab reported third-quarter revenue of $716 million, exceeding Visible Alpha estimates of $700.8 million.

The firm also raised its annual core profit forecast to between $308 million and $313 million, from $250 million and $270 million.

Revenue in the deliveries segment increased 16% to $380 million, surpassing estimates of $374.2 million.