Grab has been on a downward spiral since its SPAC merger in December 2021, but the company has promised investors it can turn things around in the next two years.
CEO Anthony Tan said to investors on Tuesday that they are eyeing to break even by the second half of 2024, on a conditional basis and excluding one-time items, before interest, taxes, depreciation, and amortization.
This year, they expect losses to narrow to $380 million on an adjusted basis in the second half. Still, Tan forecasts that revenue growth will be sharply slower next year, in the range of 45% to 55%.
This is a far cry from the 84% growth that analysts were projecting for 2023. Part of the reason for the slower growth is due to the market downturn, even as Grab attempts to reverse course.
Grab market value down 70% since SPAC
At the investor day, Tan tried to reassure shareholders that the company is on the rebound from crashing share prices and a difficult 2022. Since the SPAC merger with Altimeter Capital Management, Grab has lost more than 70% of its value and is now worth about $10.8 billion, from $40 billion.
The super app also lost $3.4 billion in 2021 and around $1 billion in the first half of 2022. Grab claims it presently has about $6 billion in cash and liquid assets on hand, allowing it to turn around its on-demand and fintech offerings.
“Looking ahead, we’re firing on all cylinders to improve our profitability trajectory. Grab is trying to achieve this by growing our top line in a sustainable manner,” Tan said at the event.
No mass layoffs
In May of this year, two executives from its fintech business, Chris Yeo and Jeffrey Goh, quit the company, following other senior departures. A source told Reuters that the departures were due to Grab’s rejig of GrabFin, which has been underperforming.
Recently, the company promised no mass layoffs, despite rival Shopee making aggressive cuts to its workforce. Instead, it will focus on reducing costs and becoming leaner in general, to include being selective with new hires.