Grab will release its financial results on July 31. Yow forecasts 2QFY2025 adjusted ebitda of US$104 million, down 2% q-o-q but up 63% y-o-y. This is slightly below the consensus estimate of US$109 million.
Grab remains focused on driving topline growth through product innovation and ecosystem expansion while maintaining disciplined cost control, says Yow. “As a result, we may see a slight q-o-q margin compression in 2QFY2025, reflecting a shift in mix towards lower-margin offerings for the on-demand segments and higher upfront credit provisions from expanding loan disbursements for the financial services segment.”
Yow believes Grab’s current share price has “already priced in the strong double-digit GMV growth guidance”. She has kept her target price unchanged at US$5.20.
Looking ahead, Yow thinks consumer spending could slow, weighing on 2HFY2025 adjusted ebitda y-o-y growth due to weaker GMV growth for the deliveries segment.
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Shares in Grab closed 7 US cents lower, or 1.4% down, at US$4.92 on July 10.
