2023-05-18 11:46:17 ET
Grab Holdings ( NASDAQ: GRAB ) stock sank 12% in Thursday late morning trading after Q1 results showed that consumer spending through its super-app is decelerating. Customers can order food delivery and rides as well as bank through its app.
Gross merchandise value of $4.96B in Q1 increased 3% Y/Y, slowing from the 11% Y/Y pace in Q4 and trailing the $5.22B Bloomberg consensus estimate. To illustrate the deceleration, Grab's ( GRAB ) GMV increased 24% for the full-year 2022.
The quarter's increase in GMV was driven by continued growth in its Mobility business, which was offset by softer Deliveries demand, with both Chinese New Year and Ramadan falling in Q1. Incentives declined to 7.9% of GMV in Q1 2023 compared with 8.25% in the preceding quarter and 11.6% in the same period a year ago.
For the full-year 2023, the super-app company revised its adjusted EBITDA guidance to between -$195M and -$235M compared with its previous outlook of -$275M to -$325M.
Guidance for 2023 revenue of $2.20B-$2.30B (vs. $2.21B consensus) remains unchanged as does its expectation to break even on an adjusted EBITDA basis in Q4 2023.
Q1 revenue of $525M, exceeding the average analyst estimate of $505.0M, more than doubled from $228M a year ago.
Q1 general and administrative expenses fell to $147M from $169M in the year-ago quarter, while research and developemnt expenses increased to $129M from $119M.
Q1 adjusted EBITDA of -$66M narrowed from -$287M in Q1 2022.
Earlier, Grab ( GRAB ) GAAP EPS of -$0.06 beats by $0.01, revenue of $525M beats by $20M
Earlier this month, SA contributor Fade The Market explained why Grab has limited upside potential from current levels
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Grab Holdings stock drops after GMV growth slows in Q1