Grab (NASDAQ:GRAB) is scheduled to announce Q1 earnings results before market opens on Thursday, May 19.
Latest Results
Grab reported Q4 revenue was $122 million for the three months ended Dec. 31, compared with $219 million a year ago.
Grab's gross merchandise volume rose 26% to $4.5 billion in the quarter, powered by a 52% rise in deliveries and 29% in its financial services segment, even as the mobility segment saw a 11% drop.
The delivery unit, which operates the GrabFood app a leading food delivery service in Southeast Asian countries including Singapore and Malaysia, recorded a 98% decline in revenue in the fourth quarter, hurt by people using coupons for payments.
Company Outlook
Grab expects Q1 deliveries GMV to be between$2.4 billion to$2.5 billion; mobility GMV to be between$0.75 billionto$0.80 billion; financial Services Pre-InterCo TPV to be between$3.1 billionto$3.2 billion.
Grab further expects GMV growth for each of the quarters from Q2 to Q4 2022 to accelerate to 30 - 35% YoY, subject to shifts in the COVID-19 environment.
Looking beyond 2022, Grab is progressing towards core food delivery Segment Adjusted EBITDA breakeven by the first half of 2023 and deliveries Segment Adjusted EBITDA breakeven by the end of 2023. In the long term, Grab is targeting steady state Adjusted EBITDA to GMV margins of 12% in mobility and 3% in deliveries.
Analyst Opinions
According to SeekingAlpha，Grab EPS normalized estimate is -$0.11; Revenue Estimate is $141.66M.
Investors will want to see Grab make progress on narrowing its EBITDA loss. In addition, spending heavily on driver incentives could also weigh on the stock once again.
Grab shares are down more than 80% from their peak last November, but with a price-to-sales ratio of 15 and wide losses, the stock could sink even lower if it doesn't make progress toward profitability.