Grab’s Q4 revenue drop wipes out $7.2b market cap in one day

Grab‘s share price has fallen to its lowest ever after it reported a 44% slump in revenue to US$122 million in the fourth quarter of 2021. This has wiped out US$7.2 billion of its market cap in one day.

Photo credit: Grab

The Singapore-based super app ended the March 3 trading day at US$3.28, which was 37% lower than its opening price of US$5.21 for the day. Its market price is now almost a quarter of its initial IPO price of US$11.01.

Grab’s market cap now stands at US$12.3 billion, which is well below 3x its US$40 billion valuation during its listing. Its market cap is now also below the company’s reported US$14 billion valuation during its series H round in 2019.

While Grab’s market cap was already half of its IPO valuation before the results announcement, at US$19.5 billion, the poor quarterly results in Q4 has dragged its valuation down even further.

The development comes as hits in Grab’s mobility segment as well as its enterprise and new initiatives segment beat down on its revenue for the fourth quarter. The ride-hailing giant’s total adjusted quarterly operating loss also widened more than 2x to US$557 million.

Meanwhile, its revenue for the full year 2021 was up 44% at US$675 million, while total losses for the year rose by 30% to over US$3.5 billion.

See also: Grab’s financial health in 8 charts

Anthony Tan, group CEO and co-founder of Grab, expects 2022 to be “another watershed year” for the company, as it prepares for the launch of its digibank in Singapore and the company’s optimistic views for its deliveries business.