Grab shares plunged 11.8% in premarket trading Thursday after it predicted full-year revenue that trailed estimates, suggesting caution around a Southeast Asian ride-hailing and food delivery market where GoTo Group remains a formidable rival.

The company expects a 19% to 22% rise in sales to $3.33 billion to $3.4 billion this year, just shy of the $3.5 billion average of analyst projections polled by Bloomberg. The company logged a smaller-than-expected 23% decline in quarterly net income. But it also spent almost 30% more on incentives to boost usage of rides, meal delivery and financial services during the period, reflecting growing competition on multiple fronts.

“We always take a more of a conservative view when we give guidance at the beginning of the year,” Chief Financial Officer Peter Oey said in an interview, adding that the company’s outlook has often improved as the year progresses.

“We should be positive net income in 2025,” he said. Regarding the surge in incentives in the quarter just ended, Oey later said on an earnings call that such costs move up and down and that the fluctuation is intentional.

After years of spending to gain market share and fend off competition, Grab is taking steps to become a more financially mature company. Like its backer, Uber Technologies Inc., it’s slashed jobs and reined in spending to pivot toward profitability. The region’s largest ride-hailing and food delivery player has also pushed into new areas through acquisitions.

In a move that would upend the regional market, Grab is now weighing a takeover of GoTo at a valuation of more than $7 billion. While the regulatory hurdles are considerable, both companies have accelerated talks for a combination to end years of losses, Bloomberg News reported.

Grab is also betting on new initiatives in areas from digital finance to its core delivery services, saying last year that such efforts should help its revenue accelerate from 2025. Growth has cooled dramatically from triple-digit rates in years past as customers in the region curb spending to cope with elevated inflation and interest rates.