The Singapore-based company predicted US$490 million to US$500 million in adjusted full-year earnings before interest, taxes, depreciation and amortisation, more than the as much as US$480 million it had forecast earlier.
Grab also narrowed its full-year sales forecast range, keeping the higher end unchanged at US$3.4 billion.
New products such as shared rides and group food orders are helping Grab fend off competition from Indonesia’s GoTo Group and smaller contenders throughout the Southeast Asian region of about 675 million people.
CEO Anthony Tan is trying to convince investors of Grab’s money-making potential, even as the area’s sputtering economies leave consumers with limited spending power.
Revenue rose 22% to US$873 million for the three months through September, Grab said. Analysts were projecting US$869 million on average, according to Bloomberg-compiled estimates. Adjusted Ebitda also beat estimates at US$136 million.
While Grab and GoTo are both growing at a double-digit percentage clip, their margins have remained slim. The two industry leaders have been exploring a combination to alleviate cost and pricing pressures, with new entrants luring away users with promotions.
Shares of Grab remain far below their initial price when it went public through a US blank-check firm in 2021. Still, they’ve gained more than 40% in the past 12 months as its profit increased, outperforming GoTo.
Grab, backed by Uber Technologies Inc, has seen growth slow dramatically from triple-digit rates in years past as it moves away from a frenetic expansion pace, focusing on profits after years of spending to grow its market share.
Grab’s increased customer base has left it with less room for growth, while many consumers are less willing to hail a ride or get food delivered to their door in a challenging economy.
To keep growing, the company is also betting on new initiatives in areas from digital finance to its core delivery services, saying last year that such efforts should help its revenue accelerate from 2025.