Singapore’s Grab raises annual revenue forecast, shares jump

(Reuters) – Singapore’s Grab Holdings (NASDAQ:) raised its forecast for fiscal 2024 revenue on Monday, as it anticipates robust growth in its food delivery and ride-hailing businesses.

U.S.-listed shares of the company rose 9% in extended trading.

The company expects revenue in the range of $2.76 billion to $2.78 billion, compared with its prior projection of between $2.70 billion and $2.75 billion.

Its mainstay food delivery business has been recovering from a post-pandemic slump in demand as consumers increase their discretionary spending budgets in a sign of economic easing.

“We remain bullish on the long-term growth outlook of Southeast Asia, and are firing on all cylinders to capture the strong user demand trends,” Grab CEO Anthony Tan said.

The company still expects positive free cash flow for the full year.

It reported third-quarter revenue of $716 million, exceeding Visible Alpha estimates of $700.8 million.