By (Reuters) – Singapore’s Grab Holdings (NASDAQ:GRAB) raised its forecast for fiscal 2024 revenue on Monday, as it anticipates robust growth in its food delivery and ride-hailing businesses.
U.S.-listed shares of the company jumped over 10% in extended trading.
The company expects revenue in the range of $2.76 billion to $2.78 billion, compared with its prior projection of between $2.70 billion and $2.75 billion.
Its mainstay food delivery business has been recovering from a post-pandemic slump in demand as consumers increase their discretionary spending budgets in a sign of economic easing.
“We remain bullish on the long-term growth outlook of Southeast Asia, and are firing on all cylinders to capture the strong user demand trends,” Grab CEO Anthony Tan said.
The company has been attempting to introduce cheaper options for its ride-hailing services to woo price-wary customers. On the other hand, the firm has been trying to promote its premium offerings as well to boost its earnings.
Grab still expects positive free cash flow for the full year.
It reported third-quarter revenue of $716 million, exceeding Visible Alpha estimates of $700.8 million.
Revenue in the deliveries segment grew 16% to $380 million, surpassing estimates of $374.2 million.
Revenue in its fastest-growing financial segment also beat estimates.
Profit for the quarter came in at $15 million, compared to a loss of $99 million, a year ago.