Grab Achieves Profit on Adjusted Basis
Grab just hit profitability on an adjusted basis for the first time since launching in 2012. They posted $29 million in adjusted EBITDA for Q3, beating analyst expectations of $9.5 million. This is a big deal for a company that's been burning through cash for over a decade.
The path here wasn't easy. Grab's been competing hard against GoTo Group and Sea Ltd while dealing with the same inflation and high interest rates hitting everyone else. Customer spending's down across the board, but Grab still managed to grow revenue 61% to $615 million.
That growth rate's slowing down though. 61% sounds impressive until you compare it to previous years. Their customer base is maturing, and people are being more careful with spending. That's normal for any company transitioning from hyper-growth to sustainable business, but it's worth watching.
They're not actually profitable yet in terms of net income - still investing heavily to compete. But adjusted EBITDA profitability shows they can make money on operations if they wanted to. That's progress. Whether they can maintain this while still growing is the real test.