Shares of Grab (NASDAQ: GRAB) were up 11.1% as of 2:30 p.m. ET Wednesday, according to data provided by S&P Global Market Intelligence, after the delivery app specialist announced strong quarterly results and raised its profitability outlook for the year.
On the former, Grab's second-quarter revenue skyrocketed 77% year over year, to $567 million, translating to a net loss of $185 milion, or $0.03 per share. Analysts, on average, were expecting a wider net loss of $0.05 per share on revenue closer to $546 million.
Driving Grab's top line was a 118% increase in deliveries revenue, to $292 million, helped by a reduction in incentives, 4% growth in gross merchandise volume (GMV), and selective changes in the business model for one of the company's key markets. GrabUnlimited subscribers increased 43% year over year, accounted for nearly a third of all deliveries GMV, and spent around 3.8 times as much more on food deliveries than non-subscribers.
Source Fool.com