From CNBC:

Grab reported its first-ever profitable quarter, with $11 million in profit for Q4 2023, compared to a $391 million loss a year ago. Revenue hit $653 million, exceeding estimates. Full year 2023 losses were $485 million, down 72% from the previous year. The company also offers financial services and deliveries.

Grab CFO Peter Oey stated that mobility has exceeded pre-Covid levels, with strong demand in both mobility and deliveries business. The company announced it would repurchase up to $500 million worth of shares for the first time. Grab was unprofitable in previous years but is now focusing on profitability over growth.

Total incentives were reduced to 7.3% of total value of goods sold in Q4, down from 8.2% a year ago. Grab had been giving out incentives to drivers and passengers but is now focusing on profitability. CFO Oey stated incentives will always be a lever for the business. Grab expects revenue between $2.70 billion and $2.75 billion for 2024.

Grab’s shares closed 8.41% lower on Thursday and have dropped 75.8% from their opening price in December 2021. Tech startups like Grab are shifting focus towards profitability due to global uncertainties. Incentives will continue to be used to attract drivers and customers to the platform.



Read more: Grab posts first profitable quarter, announces share buyback