Grab Holdings Inc., a Singapore-based ride-hailing and delivery company, reported lower-than-expected quarterly revenue, leading to a decline in its share price.


Grab Holdings, a prominent Southeast Asian technology company, experienced a shortfall in its second-quarter revenue projections. This was primarily attributed to a deceleration in the growth of its core food delivery business, coupled with adverse foreign exchange fluctuations. Consequently, the company’s U.S.-listed shares underwent a decline of 5% on Thursday.

Following the surge in food delivery demand during the pandemic, Grab Holdings has been grappling with a gradual slowdown in growth. In response to this challenge, the company implemented a significant restructuring last year, resulting in the layoff of approximately 11% of its workforce. This strategic move was undertaken with the aim of mitigating losses and enhancing operational efficiency.

Deliveries business revenue increased by 11% to $356 million, falling short of Visible Alpha’s projection of $362.1 million. This represents a slowdown compared to the 19% growth achieved in the first quarter and the doubling of revenue observed in certain quarters of 2023 and 2022.

Ride-sharing revenue experienced a below-expected growth of 14%.

Grab’s revenue and gross merchandise value were adversely affected by a decline of more than 500 basis points due to the depreciation of Southeast Asian currencies against the U.S. dollar, as reported by CFO Peter Oey to Reuters.

"We're very bullish (on the business )... travel has bounced back strongly, especially after the rainy season here," he said.

The organization maintained its annual revenue projection of $2.70 billion to $2.75 billion.

Grab, a competitor of Gojek, which is now a part of Indonesia’s GoTo Gojek Tokopedia, announced in February that revenue growth will increase in the years following 2024 as investments in novel products yield positive outcomes.

For the quarter that concluded on June 30, revenue increased by 17% to $664 million, falling short of analysts’ projections of $673.3 million, as indicated by LSEG data.

Adjusted core earnings were recorded at $64 million, in contrast to a loss of $17 million incurred during the preceding year. Analysts had anticipated $62.8 million.

As of the end of June, Grab had repurchased approximately $131 million worth of company stock, which is a component of the $500 million buyback that was declared in February.