Grab, Southeast Asia's leading ride-hailing and delivery company, announced a significant upgrade to its full-year guidance following record second-quarter results, citing strong consumer demand across the region despite ongoing macroeconomic challenges [1]. The company reported a 22% year-on-year increase in revenue to $997 million and an operating profit of $19 million for the quarter ended June, representing a 186% rise [1]. The number of rides grew by 28% year-on-year, which CFO Peter Oey described as 'one of the highest that we've seen' [1].
Shares of Grab, which is listed on the Nasdaq, rose 4.86% in extended trading following the announcement [1]. The company raised its full-year revenue outlook to a range of $4.10 billion to $4.15 billion, up from the previous forecast of $4.04 billion to $4.10 billion. EBITDA estimates were also increased to $720 million-$740 million, compared to the earlier range of $700 million-$720 million [1].
CFO Peter Oey attributed much of the company's improved performance to the integration of artificial intelligence, stating that AI has enabled Grab to ship products three times faster, resulting in better margins and a more efficient cost structure [1]. Oey also expressed confidence in the business outlook, noting that demand remained strong into July and that Grab's financial services are scaling and at an inflection point [1].
Regarding Grab's agreement to acquire Delivery Hero's foodpanda business in Taiwan, Oey said the company is working closely with regulators and aims to complete the transaction in the second half of the year. He emphasized the intention to bring Grab's popular Southeast Asian products to the Taiwan market [1].
CONCLUSION
Grab's record second-quarter results and raised full-year guidance underscore the company's strong market position and the positive impact of AI on its operations. The upbeat outlook, share price increase, and ongoing expansion efforts signal robust investor and market confidence in Grab's growth trajectory.