Singapore's Grab Forecasts Smaller Operating Loss This Year

GRAB - SINGAPORE. Grab forecast a smaller operating loss for the current fiscal year and pulled forward its profitability timeline on Wednesday, driven by cost savings from its recent workforce reduction.

The company's U.S.-listed shares were up nearly 4% in trading before the bell.

The Southeast Asian internet firm now sees adjusted loss before interest, taxes, depreciation and amortization between $30 million and $40 million, compared to its earlier forecast of $195 million to $235 million.

Read Also: South Africa, China Sign Power Deals During BRICS Summit

It brought forward its own break-even target on an adjusted core earnings basis to the third quarter of this year, from the fourth quarter earlier.

Grab is undergoing a restructuring focused on lowering costs, with measures including cuts to its cloud bill and consumer and worker incentives. In June, the company reduced around 1,000 roles, or about 11% of its workforce, in its biggest round of layoffs since early 2020, when the pandemic began.

In the quarter ended June 30, the company's revenue increased 77%, to $567 million, surpassing analysts' estimate of $546.1 million, according to Refinitiv data.