Grab Holdings, a major player in the Southeast Asian tech industry, has reported a significant increase in quarterly revenue, prompting the company to raise its full-year profit forecast. The company’s revenue rose by 24% to $653 million in the first quarter, surpassing analysts’ estimates and indicating a strong performance in the market.
The boost in revenue can be attributed to recent cost-reduction measures and a surge in demand for Grab’s ride-share services. A restructuring effort that included cutting 1,000 jobs and reducing technology costs has helped the company move closer to achieving positive free cash flow this year.
According to CFO Peter Oey, the increase in Southeast Asian tourism and a rise in corporate events and concerts have contributed to the growing demand for ride-share services. Grab’s food delivery business, its largest revenue stream, and the ride-share business both saw significant growth, outperforming market expectations.
Following the positive results, Grab’s U.S.-listed shares gained 2% in extended trading. The company now projects an adjusted core profit between $250 million and $270 million for the year, up from its previous forecast. Grab also disclosed a $97 million repurchase of its Class A shares as part of a $500 million buyback plan.
The strong showing from Grab highlights the increased discretionary spending by consumers in the region and solidifies its position as one of Southeast Asia’s leading tech firms. With a positive outlook for the year ahead, Grab is poised for continued success in the market.