Big fall in Grab shares after rough fourth-quarter results
SINGAPORE – March 4, 2022 – A disappointing fourth-quarter report sent Grab stock spiraling down –37.28% today.
The platform’s gross merchandise volume (GMV), or the total amount spent on services, climbed 26% to $4.5 billion, with a 52% increase in delivery but an 11% fall in mobility, which appears to be attributable to the epidemic.
Despite the rise in usage, revenue decreased 44% to $122 million as Grab introduced incentives to bolster its driver supply ahead of a predicted resurgence in demand as the virus subsides.
The steep drop in revenue seems surprising, but there were no analyst projections to compare it to. But the company says it is upbeat for the future.
“As we prepare to launch our digibank in Singapore and continue to explore the tremendous potential in delivery to outserve consumers with more alternatives and better service, we believe 2022 to be another watershed year for Grab. Even though we encountered harsher conditions with the Delta and Omicron variations, 2021 was our best year yet.”
“We continued to increase our Adjusted EBITDA margins year over year while achieving outsized growth in both GMV and Revenues, proving the superapp’s robustness and expanding relevance,” says Anthony Tan, Grab’s Group CEO and co-founder.
Grab is very popular
For a variety of daily requirements, Southeast Asians are increasingly depending on the Grab superapp.
Sixty-six percent of our consumers now utilise two or more Grab services, and average user spending on our platform increased by 31% year over year in 2021.
The company says 2021 was its strongest year yet, even as it faced tougher conditions with the Delta and Omicron variants.
“Southeast Asians are relying more and more on the Grab superapp for a multitude of daily needs. 56% of our users are now using two or more Grab services and the average user spend on our platform in 2021 grew 31% year over year.”
Peter Oey, Chief Financial Officer of Grab, says, “We maintained category leadership across all our core verticals with our food delivery business making up the majority of Southeast Asia’s online food delivery market.
“The superapp gives us significant advantages in capital efficiencies, while continuing to drive greater loyalty and retention among our users. We plan to be judicious and disciplined in allocating capital, as we double down on the long-term growth opportunities of our on-demand, advertising and financial services businesses.
“Our Segment Adjusted EBITDA margins for Fiscal Year 2021 have improved year over year across our three core segments, and we have best-in-class margins in mobility. We remain laser focused on our path to profitability and will continue to improve our unit economics.”