Grab Q4 Earnings Analysis
[GRAB Q4 Financial Results Overview]
Revenue: Fourth-quarter revenue reached $653 million, up 30% year over year, exceeding analysts' general expectations of $633 million, showing the company's strong momentum in terms of revenue growth.
Net profit: Q4 net profit was US$11 million, a significant improvement compared with a net loss of US$391 million in the same period last year. This improvement is mainly due to an increase in EBITDA, changes in fair value of investments, and a reduction in equity incentive fees.
Earnings per share (EPS): Earnings per diluted share were $0.01, exceeding analysts' expectations of -0.03, compared to -0.1 dollars in the same period last year.
Adjusted EBITDA: $35 million, slightly lower than the forecast of $38.9 million.
Free cash flow: Adjusted free cash flow for the fourth quarter was $1 million.
[Business Performance]
GMV: Total GMV increased 9% year over year, thanks to growth in mobile and delivery businesses.
On-demand GMV: 18% year-on-year increase and 3% month-on-month growth, showing a healthy business growth trend.
Monthly trading users (MTU): 12% year-over-year increase, indicating a steady growth in the user base.
Market and strategy developments
Grab is focusing on becoming a more financially mature company to achieve profit by implementing layoffs and controlling expenses.
After years of rapid expansion, Grab is focusing on increasing profit levels.
Grab and GoTo have restarted discussions about merging their core businesses, which may help lower the company's expenses and effectively reach consumers across the region.
[Outlook]
Grab expects revenue to grow 14% to 17%, reaching $2.7 billion to $2.75 billion, slightly below analysts' average expectations of $2.8 billion. This shows that the company is cautious about future business growth, and also reflects a slowdown in the growth rate of its core online business.
Despite achieving a second consecutive quarter of profit, lower revenue expectations than analysts' expectations put some pressure on the company's share repurchase plan.
Overall, Grab's earnings report shows positive developments in revenue and profitability of its business. However, low expectations for future growth and a slowdown in the growth rate of its core online business indicate that Grab is still facing challenges on the path to long-term stable growth.
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生财有道致力于全方位成长投资。邱天雄老师曾是上市公司主要媒体的CEO领导，拥有超过20年的投资经验。主要投资美国，中国和大马。
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102487453 : if up so much why share price drops today?
Macdonell J 102487453: Price dropped was mainly due to weak guidance for FY2024: $2.70 billion - $2.75 billion (14% - 17%) YoY vs $2.82B consensus.
生财有道OP 102487453: In relation to profit expectations, Wall Street focuses on profit expectations
103460389 : when to buy grab