As a long-term investor in Grab, I've been pleased with its steady performance. While it may not have seen the same spectacular gains as NVIDIA, its stability is a welcome trait, especially compared to the volatility that can lead to significant losses. Grab's average price recently surpassed $3.60, though it has since dipped due to Maybank's concerns about monetization. Despite this, I believe Grab is on the right track, continually improving and moving towards profitability.
In its Q1 2024 earnings report, Grab reported revenue of $653 million, a with GMV increasing by 18% year-over-year. Its adjusted EBITDA was $62 million, a significant improvement by $129 million loss last year.
Grab's financial position has also strengthened, with cash and cash equivalents totaling $5.3 billion as of March 2024.
Although it still has a way to go to reach its initial public offering price of over $16, its strong Q1 performance and adjusted EBITDA demonstrate its upward trajectory. Amidst a generally pessimistic market, Grab has shown resilience and growth in food delivery and mobility. I'm optimistic that as Grab further integrates into daily life, with food delivery becoming increasingly popular and a stable source of income for drivers, and tourism rebounding in Singapore and other Southeast Asian markets, the company will continue to thrive and eventually achieve profitability.
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