(Reuters) – Grab Holdings reported its first-ever quarterly profit on Thursday and announced a maiden share repurchase plan, following recent cost cuts and higher demand for the company’s ride-share and food-delivery services.
The Singapore-based company said it will repurchase $500 million worth of its class A ordinary shares, sending Grab’s U.S.-listed shares up nearly 2% at $3.50 in premarket trading.
Uber announced its first share buyback last week.
Grab has trimmed its workforce, as well as cut back on some incentives and technology costs over the past two years.
The company forecast fiscal 2024 revenue between $2.70 billion and $2.75 billion, compared to analysts’ estimates of $2.80 billion, according to LSEG data.
Grab also forecast full-year adjusted core profit of $180 million to $200 million, compared to estimates of $135.2 million.
The company reported fourth-quarter revenue of $653 million, beating estimates of $629 million.
Grab posted a net income of $11 million in the fourth quarter, helped in part by a “reversal of an accounting accrual,” according to the company.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Shounak Dasgupta)
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