(Reuters) – Grab, the Southeast Asian internet firm, has revised its operating loss forecast for the current fiscal year and accelerated its profitability timeline due to cost savings resulting from a recent workforce reduction. Prior to the market opening, the company’s U.S.-listed shares rose by almost 4%. The adjusted loss before interest, taxes, depreciation, and amortization for the company is now expected to be between $30 million and $40 million, compared to the previous projection of $195 million to $235 million. Additionally, Grab has moved its adjusted core earnings break-even target to the third quarter of this year, advancing it from the previous fourth-quarter target.
Grab has been implementing a restructuring plan to reduce costs. This involves cost-cutting measures such as reducing its cloud bill, as well as curtailing consumer and worker incentives. In June, the company carried out its largest round of layoffs since early 2020, eliminating approximately 1,000 positions, which constituted around 11% of its workforce, in response to the onset of the pandemic.
During the quarter that ended on June 30, Grab recorded a 77% increase in revenue, reaching $567 million. This performance exceeded analyst expectations, which had estimated revenue at $546.1 million, based on Refinitiv data.
Yuvraj Malik in Bengaluru contributed to this report.
Credit: The Star : Tech Feed
