- Southeast Asian super app Grab posted its first ever profitable quarter in Q4 2022.
- Grab also announced a $500 million share buyback program.
- Though facing monopoly concerns, positive financials show Grab’s path to sustainable expansion.
Grab, the Southeast Asian super app reported its first-ever profitable quarter in Q4 2022. The company posted a $11 million profit, compared to a $391 million loss in Q4 2021.
Grab attributed the swing to improved adjusted EBITDA and lower share-based compensation.
Grab confident moves
On the back of its “robust balance sheet,” Grab also announced a $500 million share repurchase program. Share buybacks typically signal confidence that a stock will rise in the short term.
Grab’s adjusted EBITDA remained positive at $35 million after first reaching profitability last quarter.
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Continued growth ahead?
“As we execute our 2024 strategies, we expect to drive continued EBITDA and cash flow improvements,” said CFO Peter Oey. Grab’s revenue grew 30% year-over-year to $653 million in Q4, with deliveries and mobility leading segment growth.
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For the full year, Grab’s revenue jumped 65% to $2.36 billion. Losses narrowed significantly to $485 million.
The super app has faced monopoly concerns, with Singapore reviewing Grab’s proposed acquisition of Trans-Cab in January. However, positive financials suggest that Grab is on a path to sustainable growth.
You can also read the original story in its entirety on https://www.techinasia.com/grab-q4
