TL;DR
On the headline level, Grab’s 2Q22 results looked good with a lower net loss. However, its share price fell 12% after the results were released on 25 August.This might be because Grab lowered its gross merchandise value (GMV) guidance with a slowdown in Deliveries.Investor expectations might also be high as Grab’s share price has bounced by close to 60% from its lows. We’d be staying away until it can demonstrate a sharper reduction in losses and a clearer path to profitability.What happened?
We received several questions about Grab’s share price movement after its most recent 2Q22.
On the headline level, things seem to look pretty good:
Grab reported 2Q22 revenue of US$321 million, an increase of 79% year-over-year. Its adjusted EBITDA losses fell from US$ 287 million in 1Q22 to US$233 million in 2Q22. Its net loss narrowed to US$572 million in 2Q22, compared to US$801 million in 2Q21.Total incentives as...
