Shares of Grab Holdings Ltd. increased by 11% after the business announced a profitability objective and disclosed a smaller quarterly loss thanks to significant cost reductions at a Southeast Asian taxi and food delivery service provider.

After Grab stated on Wednesday that it intends to break even in the third quarter rather than the fourth as originally predicted, the company’s shares in New York had their greatest gain in three months. Sales exceeded expectations, and second-quarter adjusted losses fell more than experts had predicted.

Since its founding in 2012, Grab has had tremendous growth; nonetheless, losses have escalated as a result of the company’s spending on customer acquisition and growth in the face of intense competition from rivals like the GoTo Group and Sea Ltd. The Singaporean company is now on the verge of becoming profitable for the first time because of its recent emphasis on cost-cutting measures, which included eliminating more than 1,000 jobs in June.

“A clean and strong result, especially in terms of improved mobility and delivery dynamics,” Citigroup analysts wrote in a note about the results. Outlook shows “effective cost control and clear direction for execution.”

Instead of the $195 to $235 million loss it predicted in May, Grab said its full-year adjusted loss before interest, taxes, depreciation, and amortization will be between $30 and $40 million. In the second quarter, the loss on that basis decreased to $20 million from the average analyst expectation of $64.6 million.

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