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Grab CEO and co-founder Anthony Tan noted that the company has been making intense efforts to improve its profitability.
After years of losses, Singaporean technology company Grab Holdings Inc (NASDAQ: GRAB) is now targeting profits in H2 2024. Even as the company expects revenue to slow down sharply, Grab still announced its aim to break even in H2 2024 on a Group Adjusted EBITDA basis. The technology company announced its targets for profitability at its first Investor Day, stating impressive forecasts.
Group Adjusted EBITDA for H2 2022 is expected to come in at $380 million. The figures will represent a 27% jump compared to H1 2022. Furthermore, the company is trying to cheer investors up with its predictions. Grab added that it looks forward to its revenue growing strongly between 45% to 55% YoY in 2023. Meanwhile, analysts projected an average gain of 49% gain for 2023. As Grab pursues profitability in H2 2024, the technology company also announced to reach breakeven for its Digibank operations by 2026.
Grab Expects to Breakeven in H2 2024
Grab CEO and co-founder Anthony Tan noted that the company has been making intense efforts to improve its profitability. Tan added that Grab is committed to seeing growth, as it stated in its new target for 2023, 2024, and beyond. He continued:
“We believe there is a huge runway of growth ahead of us in serving this region and we are well positioned with our resources to capitalize on the vast opportunities. We plan to leverage the power of the superapp ecosystem as a competitive moat to strengthen our leadership in the region, even as we continue to optimize our costs. We will drive towards becoming Southeast Asia’s largest and most efficient on-demand platform that enables local commerce and mobility.”
Additionally, Grab’s chief operating officer Alex Hungate commented on the company’s strategic growth initiatives. Hungate said Grab would drive growth via GrabForBusinesess, GrabUnlimited, advertising, groceries, and local partnerships. The tech company specifically said it would leverage GrabUnlimited as a strategic growth lever. The pilot monthly subscription program is now available in five countries, including Singapore. Others are Indonesia, Malaysia, Thailand, and the Philippines. Users of the Grap superapp have access to various services, including food and parcel delivery, at a flat monthly rate.
To help its 2024 profitability race, Grab is launching proprietary technology. The purpose of the proprietary technology is to improve its platform efficiency. Hence, benefitting merchants and attracting more partners. More so, Grab is working on its fintech services in its ecosystem. The company will create a platform to launch its Digibanks.
Except for an 11.51% increase in the last three months, Grab has been steadily declining. The company’s stock has lost nearly 73% over the past year and 60.59% since January. GRAB has also plunged 8.17% over the past month and 4.75% in the last five days.