Grab Holdings Limited (GRAB) declined in the current market after announcing its fourth quarter and fiscal 2021 results. GRAB values at $3.64, losing more than 30.31% compared to yesterday’s closing price. The stock closed at $5.23 at the end of the last trading session. The stock volume traded in the previous trading session was around 27.45 million shares. The current market cap of the company is about $13.73 billion.
GRAB: Q4 and Fiscal 2021 Key Financials
- Grab Holdings Limited’s revenue in Q4 2021 was $122 million. It is a decrease of around half compared to the revenue of $219 million in Q4 2020.
- Fiscal 2021 revenue was $675 million, more than the revenue of $469 million in fiscal 2020.
- The company’s net loss in Q4 2021 was around $1.1 billion, a massive loss compared to the net loss of $635 million in Q4 2020.
- GRAB’s net loss in fiscal 2021 was around $3.55 billion, and profitability decreased massively compared to the net loss of $2.7 billion in fiscal 2020.
- Grab Holdings Limited’s Q4 gross merchandise volume (GMV) increased by 26 percent year on year to $4.5 billion, while its 2021 GMV increased by 29 percent year on year to $16.1 billion.
GRAB CEO’s Remarks
The company’s CEO and co-founder, Anthony Tan, remarked that despite the more difficult circumstances brought on by the Delta and Omicron variants, 2021 was the company’s most incredible year ever. Growth in both GMV and Revenues, as well as in Adjusted EBITDA margins, demonstrates the super app’s robustness and increasing significance.
GRAB 2022 Outlook
For each quarter from Q2 through Q4 of 2022, Grab Holdings estimates GMV growth of 30-35% YoY, depending on the COVID-19 situation. By the first half of 2023, Grab is on track to break even in its core food delivery Segment Adjusted EBITDA, and by the end of 2023, it is on its way to breaking even in its deliveries Segment. A steady-state Adjusted EBITDA margin of 12% in transportation and 3 % in deliveries are long-term goals for Grab.
Conclusion
The stock is down due to the decline in the quarterly revenues. It is caused by the company’s massive promotional offers and higher driver incentives investments in the largest ride-hailing and food delivery business.
