4 Reasons to Grab Shares of Grab Holdings Before 2024 Ends

Core Viewpoint - Grab Holdings Ltd. has achieved a significant milestone by posting a net profit for the first time in Q3 2024, indicating a turnaround in its financial performance and growth trajectory in the Southeast Asian market [3][4]. Financial Performance - Grab reported Q3 2024 earnings per share (EPS) of $0.01, exceeding consensus estimates of a loss of $0.01. Revenue increased by 17% year-over-year (YoY) to $716 million, surpassing the consensus estimate of $696 million [3][4]. - The company achieved a net profit of $15 million, a substantial recovery from a loss of $99 million in the same quarter last year. Adjusted EBITDA reached an all-time high of $90 million [4]. - Monthly transacting users (MTU) rose to 42 million, representing only 15% of the total addressable market (TAM) in the region [6]. Growth Drivers - Grab effectively utilizes the network effect to cross-sell its services, starting from its core ride-hailing service and expanding into food delivery, grocery delivery, package delivery, payment processing, and financial services [5][6]. - Active users of GrabFood and GrabMart exhibit five times more order frequency and double the retention rate compared to users of single services [6]. Guidance and Forecast - Grab raised its full-year 2024 revenue guidance to a range of $2.76 billion to $2.78 billion, up from the previous forecast of $2.70 billion to $2.75 billion, aligning with the consensus estimate [8]. - Full-year adjusted EBITDA is now expected to be between $308 million and $313 million, an increase from the prior estimate of $250 million to $270 million [8]. Market Position and Stock Performance - Grab's stock has shown positive momentum, breaking out of a symmetrical triangle pattern, with a current price of $4.99 and a price target of $5.48, indicating a potential upside of 9.78% [7][12]. - The company holds $2.5 billion in cash and $5.8 billion in net cash liquidity, reflecting a strong financial position [9].