SINGAPORE–(BUSINESS WIRE)–Grab Holdings Limited (NASDAQ:GRAB), Southeast Asias leading superapp, today announced financial results for the fourth quarter and full year ended December 31, 2021.
2021 was our strongest year yet, even as we faced tougher conditions with the Delta and Omicron variants. We achieved outsized growth in both GMV and Revenues while continuing to improve our Adjusted EBITDA margins year over year, demonstrating the resilience and growing relevance of the superapp, said Anthony Tan, Group CEO and co-founder of Grab. Southeast Asians are relying more and more on the Grab superapp for a multitude of daily needs. 56% of our users are now using two or more Grab services and the average user spend on our platform in 2021 grew 31% year over year. We expect 2022 to be another watershed year for Grab, as we get ready to launch our digibank in Singapore, and continue to pursue the massive opportunities in deliveries to outserve consumers with more options and better convenience.
Peter Oey, Chief Financial Officer of Grab, added, We maintained category leadership across all our core verticals with our food delivery business making up the majority of Southeast Asias online food delivery market. The superapp gives us significant advantages in capital efficiencies, while continuing to drive greater loyalty and retention among our users. We plan to be judicious and disciplined in allocating capital, as we double down on the long-term growth opportunities of our on-demand, advertising and financial services businesses. Our Segment Adjusted EBITDA margins for Fiscal Year 2021 have improved year over year across our three core segments, and we have best-in-class margins in mobility. We remain laser focused on our path to profitability and will continue to improve our unit economics.
Full Year 2021 Financial and Operational Highlights
Fourth Quarter 2021 Financial and Operational Highlights
Fourth Quarter and FY2021 Financial and Operational Highlights
($ in millions, unless otherwise stated) |
Three Months Ended |
YoY % |
Year Ended December |
YoY % | |||||||
| 2021 | 2020 | 2021 | 2020 | |||||||
| (unaudited) | (unaudited) |
| (unaudited) | (unaudited) |
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Operating Metrics(i): |
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GMV | 4,501 | 3,573 | 26% | 16,061 | 12,492 | 29% | |||||
MTUs (millions of users) | 26.0 | 25.3 | 3% | 24.1 | 24.5 | -2% | |||||
GMV per MTU ($) | 173 | 141 | 23% | 666 | 509 | 31% | |||||
Partner Incentives3 | 218 | 126 | 74% | 717 | 621 | 15% | |||||
Consumer Incentives | 365 | 162 | 126% | 1,065 | 616 | 73% | |||||
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Financial Measures: |
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Revenue | 122 | 219 | -44% | 675 | 469 | 44% | |||||
Loss for the period | (1,100) | (635) | -73% | (3,555) | (2,745) | -30% | |||||
Total Segment Adjusted EBITDA (Non-IFRS)(ii) | (113) | 49 | NM | (125) | (226) | 45% | |||||
Adjusted EBITDA (Non-IFRS)(ii) | (305) | (102) | -199% | (842) | (780) | -8% |
Notes:
(i) See Operating Metrics section herein for an explanation of operating metrics used throughout this release.
(ii) For a reconciliation to the most directly comparable IFRS measure see the section titled “Unaudited Financial Information and Non-IFRS Financial Measures.
Results by Segments
Deliveries
Mobility
Financial Services
Enterprise and New Initiatives
Grab remains category leader in Southeast Asia for online food delivery, ride-hailing and e-wallet payments
Euromonitor has updated its analysis for the full year of 2021 to determine category share across Grabs three core business verticals: deliveries, mobility and financial services. Based on Euromonitors independent analysis, Grab continued to be the category leader in 2021 by GMV in online food delivery and ride-hailing, and by TPV in the e-wallet segment of financial services in Southeast Asia, despite increased competition. Notably, Euromonitor found that Grab continues to be the leading ride-hailing and food delivery platform in Indonesia.
| Euromonitor estimated 2021 regional category share | |
Segment | Grab | Next closest competitor |
Online food delivery | 51% | 2.1x |
Ride hailing | 71% | 3.9x |
E-wallet | 21% | 1.3x |
Source: Euromonitor International estimates from desk research, consumer survey, and trade interviews with leading market players and relevant industry stakeholders in the online food delivery, ride hailing and e-wallet sectors
According to data.ai (formerly known as App Annie), Grab led the mobility and delivery category in 2021 for Southeast Asia with the highest number of average monthly active users and downloads7, being 2.2x and 1.2x larger respectively compared to the next closest competitor.
Company Outlook
Coming off Q4 which is a seasonally strong quarter, for Q1 2022 Grab currently expects:
Grab further expects GMV growth for each of the quarters from Q2 to Q4 2022 to accelerate to 30 – 35% YoY, subject to shifts in the COVID-19 environment.
Looking beyond 2022, Grab is progressing towards core food delivery Segment Adjusted EBITDA breakeven by the first half of 2023 and deliveries Segment Adjusted EBITDA breakeven by the end of 2023. In the long term, Grab is targeting steady state Adjusted EBITDA to GMV margins of 12% in mobility and 3% in deliveries.
About Grab
Grab is Southeast Asias leading superapp based on GMV in 2021 in each of food deliveries, mobility and the e-wallets segment of financial services, according to Euromonitor. Grab operates across the deliveries, mobility and digital financial services sectors in 480 cities in eight countries in the Southeast Asia region Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Grab enables millions of people each day to access its driver- and merchant-partners to order food or groceries, send packages, hail a ride or taxi, pay for online purchases or access services such as lending, insurance, wealth management and telemedicine, all through a single everyday everything app. Grab was founded in 2012 with the mission to drive Southeast Asia forward by creating economic empowerment for everyone, and since then, the Grab app has been downloaded onto millions of mobile devices. Grab strives to serve a double bottom line: to simultaneously deliver financial performance for its shareholders and a positive social impact in Southeast Asia.
Forward-Looking Statements
This document and the announced investor webcast contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this document and the webcast, including but not limited to, statements about Grabs beliefs and expectations, business strategy and plans, objectives of management for future operations of Grab, and growth opportunities, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including anticipate, expect, suggest, plan, believe, intend, estimate, target, project, should, could, would, may, will, forecast or other similar expressions. Forward-looking statements are based upon estimates and forecasts and reflect the views, assumptions, expectations, and opinions of Grab, which involve inherent risks and uncertainties, and therefore should not be relied upon as being necessarily indicative of future results. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to: Grabs ability to grow at the desired rate or scale and its ability to manage its growth; its ability to further develop its business, including new products and services; its ability to attract and retain partners and consumers; its ability to compete effectively in the intensely competitive and constantly changing market; its ability to continue to raise sufficient capital; its ability to reduce net losses and the use of partner and consumer incentives, and to achieve profitability; potential impact of the complex legal and regulatory environment on its business; its ability to protect and maintain its brand and reputation; general economic conditions, in particular as a result of COVID-19; expected growth of markets in which Grab operates or may operate; and its ability to defend any legal or governmental proceedings instituted against it. In addition to the foregoing factors, you should also carefully consider the other risks and uncertainties described in the Risk Factors section of Grabs registration statement on Form F-1 and the prospectus therein, and other documents filed by Grab from time to time with the U.S. Securities and Exchange Commission (the SEC).
Forward-looking statements speak only as of the date they are made. Grab does not undertake any obligation to update any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required under applicable law.
Unaudited Financial Information and Non-IFRS Financial Measures
Grabs unaudited selected financial data for the three months and year ended December 31, 2021 and 2020 included in this document and the investor webcast is based on financial data derived from the Grabs management accounts that have not been reviewed or audited.
This document and the investor webcast also include references to non-IFRS financial measures, which include: Adjusted EBITDA, Total Segment Adjusted EBITDA and Segment Adjusted EBITDA. However, the presentation of these non-IFRS financial measures is not intended to be considered in isolation from, or as an alternative to, financial measures determined in accordance with IFRS. In addition, these non-IFRS financial measures may differ from non-IFRS financial measures with comparable names used by other companies.
Grab uses these non-IFRS financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons, and Grabs management believes that these non-IFRS financial measures provide meaningful supplemental information regarding its performance by excluding certain items that may not be indicative of its recurring core business operating results. For example, Grabs management uses: Total Segment Adjusted EBITDA as a useful indicator of the economics of Grabs business segments, as it does not include regional corporate costs.
There are a number of limitations related to the use of non-IFRS financial measures. In light of these limitations, we provide specific information regarding the IFRS amounts excluded from these non-IFRS financial measures and evaluate these non-IFRS financial measures together with their relevant financial measures in accordance with IFRS.
This document and the investor webcast also includes Pre-InterCo data that does not reflect elimination of intragroup transactions, which means such data includes earnings and other amounts from transactions between entities within the Grab group that are eliminated upon consolidation. Such data differs materially from the corresponding figures post-elimination of intra-group transactions.
Explanation of non-IFRS financial measures:
|
For the three months ended |
For the year ended | ||||||
| 2021 |
| 2020 |
| 2021 |
| 2020 | |
($ in millions, unless otherwise stated) | $ |
| $ |
| $ |
| $ | |
Loss for the period | (1,100) |
| (635) |
| (3,555) |
| (2,745) | |
|
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| |
Net interest expenses | 340 |
| 383 |
| 1,675 |
| 1,391 | |
Other expense / (income) | 8 |
| 2 |
| (12) |
| (10) | |
Income tax (credit) / expenses | (3) |
| * |
| 3 |
| 2 | |
Depreciation and amortization | 89 |
| 97 |
| 345 |
| 387 | |
Stock-based compensation expenses | 110 |
| (10) |
| 357 |
| 54 | |
Unrealized foreign exchange loss | 9 |
| 9 |
| 1 |
| * | |
Impairment losses on goodwill and non-financial assets | 13 |
| 9 |
| 15 |
| 43 | |
Fair value changes on investments | (103) |
| 8 |
| (37) |
| 57 | |
Restructuring costs | * |
| 1 |
| 1 |
| 2 | |
Legal, tax and regulatory settlement provisions | 4 |
| 34 |
| 12 |
| 39 | |
Share listing and associated expenses | 328 |
| – |
| 353 |
| – | |
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Adjusted EBITDA | (305) |
| (102) |
| (842) |
| (780) | |
Regional corporate costs | 192 |
| 151 |
| 717 |
| 554 | |
Total Segment Adjusted EBITDA | (113) |
| 49 |
| (125) |
| (226) | |
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Segment Adjusted EBITDA |
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Deliveries | (84) |
| (2) |
| (130) |
| (211) | |
Mobility | 76 |
| 113 |
| 345 |
| 307 | |
Financial services | (110) |
| (82) |
| (349) |
| (331) | |
Enterprise and new initiatives | 5 |
| 20 |
| 9 |
| 9 | |
Total Segment Adjusted EBITDA | (113) |
| 49 |
| (125) |
| (226) | |
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* Amount less than $1 million |
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Operating Metrics
Gross Merchandise Value (GMV) is an operating metric representing the sum of the total dollar value of transactions from Grabs services, including any applicable taxes, tips, tolls and fees, over the period of measurement. GMV is a metric by which Grab understands, evaluates and manages its business, and Grabs management believes is necessary for investors to understand and evaluate its business. GMV provides useful information to investors as it represents the amount of a consumers spend that is being directed through Grabs platform. This metric enables Grab and investors to understand, evaluate and compare the total amount of customer spending that is being directed through its platform over a period of time. Grab presents GMV as a metric to understand and compare, and to enable investors to understand and compare, Grabs aggregate operating results, which captures significant trends in its business over time.
Monthly Transacting User (MTU) is defined as the monthly transacting users, which is an operating metric defined as the monthly number of unique users who transact via Grabs products, where transact means to have successfully paid for any of Grabs products.
Contacts
For inquiries regarding Grab, please contact:
Media
Grab: press@grab.com
Sard Verbinnen & Co: Grab-SVC@sardverb.com
Investors
Grab: investor.relations@grab.com
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