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Shares of Grab Holdings (NASDAQ: GRAB) were heading lower today after Southeast Asia's leading ride-sharing business posted disappointing results in its second-quarter results.

As of 1:20 p.m. ET, the stock was down 5.9% on the news.

Grab comes up short

Revenue in the quarter rose 17%, or 23% in constant currency to $664 million, which missed estimates at $673.2 million. Gross merchandise volume (GMV), or the total value of all orders, grew more slowly, up 13% to $4.4 billion.

Grab's user base also continued to grow, reaching 41 million monthly transacting users, and profit margins improved as well with adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) up from $64 million to $81 million.

On a generally accepted accounting principles ( GAAP ) basis, Grab's per-share loss narrowed from $0.03 to $0.01, which matched estimates.

CEO Anthony Tan said, "Looking ahead, we are seeing continued strength in the Southeast Asian economy and will continue to leverage our key product initiatives to serve more users in the region, while also driving cost discipline across our business."

What's next for Grab

Grab maintained its guidance for the full year, calling for revenue growth of 14%-17%, reaching $2.7 billion-$2.75 billion. However, that was below the analyst consensus at $2.77 billion.

On the bottom line, the company continues to see adjusted EBITDA of $250 million-$270 million, and positive free cash flow for the year.

Grab's growth rate was also notably slower than Uber , the global leader in ride-sharing, which reported a 19% increase in gross bookings.

While there was nothing alarming in Grab's earnings report, the weaker-than-expected growth explains why the stock fell today. The company will need to deliver faster revenue growth or improved profitability to drive a rebound in the stock.

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