Grab Holdings Ltd. (NASDAQ: GRAB), reported this morning a solid third quarter as the investments made across its business have helped to accelerate gross merchandise value on demand.
In Q3, the multinational increased its monthly users of its platform from 42 to 43 million.
Peter Oey, its head of finance, continues to view Southeast Asia as a “very under-penetrated market” for Grab.
Investors have responded positively to Mr. Sneddon’s remarks, as it indicates that the company has significant room to expand in an area where they already hold a strong position.
The Grab Stock is now up by more than 10% after the Tuesday earnings announcement.
Stock up on the raised guide
Grab operates in 700 cities across eight countries of Southeast Asia, a region it believes will drive long-term growth.
In an interview with CNBC today, CFO Oey said: “We are seeing very strong demand… As we focus on October only, we see good momentum in the business.”
The guidance that the company released on Tuesday reflected his confidence.
Grab’s revenue is expected to drop between $2.76 and $2.78 Billion in 2024. Comparatively, analysts were at $2.755billion.
The mobility company also beat Street expectations in the Q3 of its fiscal year.
Tourism is on the rise, and Grab will benefit.
Grab has a good chance of being a major beneficiary, as Southeast Asia will continue to draw tourists from around the globe.
Financial services are the fastest growing business of this Nasdaq listed company, and it is expected to continue as a major driver for future growth.
Grab’s deposits tripled to more than $1.0 billion during the third quarter, while its loans grew by an impressive 80% year over year.
It is expected that the bank division will break even by 2026.
The chief financial officer stated on “SquawkBox Asia” that “we’re going continue to ensure we have product acceptance and serve our customer base, and drive scale and efficiency in our Financial Services business.”
Grab Stock: Is there any potential for growth?
Analysts at Daiwa began covering Grab last month with an “outperform rating” with a potential upside of $4.60. This price has been reached after today’s earnings.
Bernstein raised its price target on the Singapore-based firm in October. It cited tourism as an important potential driver for future growth.
On Tuesday, the company’s management announced that it had “deliver[ed] our 11 th consecutive quarterly improvement in adjusted EBITDA, second positive result for the quarter and highest quarterly adjusted cash flow” to date.
Currently, the multinational technology company doesn’t pay dividends.
The post Will Grab continue to expand in Southeast Asia? may change as new information becomes available
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