SINGAPORE: Ride-hailing and delivery giant, Grab, reported a $14.8 million profit in the fourth quarter of fiscal year 2023 (4Q23), after a challenging previous quarter that saw a substantial $524.8 million loss.
The positive financial performance in 4Q23 represents Grab’s first profitable quarter following its merger with Altimeter Growth Corporation.
The Nasdaq-listed firm showcased a notable 30% year-over-year increase in revenue, reaching $876.5 million. Additionally, Grab displayed an enhanced adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $46.98 million during the same period.
Despite the impressive fourth-quarter results, Grab recorded an overall loss for the entire financial year 2023 (FY23) amounting to $651 million.
However, this figure is notably lower when compared to the previous fiscal year, with Grab successfully reducing its losses by 65% year-over-year.
The positive outcome in 4Q23 indicates a strategic and financial recovery for Grab, signaling a potential shift in the company’s trajectory. Grab’s ability to rebound from a substantial loss in the previous quarter and the year-end loss reduction compared to FY22 showcases resilience and effective management strategies amid a dynamic market landscape, according to observers.
Investors and industry analysts are closely watching Grab’s financial performance, and the positive fourth-quarter results may contribute to renewed confidence in the company’s future prospects. As Grab continues to navigate the competitive landscape of the tech industry, these financial developments mark a crucial chapter in the company’s journey towards sustained profitability.
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