SINGAPORE–(BUSINESS WIRE)–Grab Holdings Limited (NASDAQ: GRAB) today announced unaudited financial results for the second quarter ended June 30, 2023.
“We had a strong set of results for the second quarter. Deliveries GMV grew year-over-year (“YoY”) to hit record-highs, supported by our continued push on key affordability initiatives and an expanding GrabUnlimited subscriber base. More people are using Grab today than ever before, as we achieved our highest Monthly Transacting Users to date,” said Anthony Tan, Group Chief Executive Officer and Co-Founder of Grab. “Looking ahead, we will focus on making our platform more valuable to our driver- and merchant-partners, by providing them with tools and services to become more productive and engaged. Our aim is to continue fostering a flourishing ecosystem that enables them to thrive, while delivering sustainable growth for Grab.”
“We continued on our path to profitability, with Group Revenues growing 77% YoY, while delivering our sixth consecutive quarter of Group Adjusted EBITDA improvement. Against the backdrop of a strong first half along with our focus on driving cost efficiencies and maintaining a strong balance sheet, we are revising our Group Adjusted EBITDA guidance range up by $165 million to $195 million, to $(30) million to $(40) million for the full year 2023,” said Peter Oey, Chief Financial Officer of Grab. “We are on track to achieve Group Adjusted EBITDA breakeven in the third quarter of 2023, ahead of our prior target of the fourth quarter of 2023.”
Group Second Quarter 2023 Key Operational and Financial Highlights
($ in millions, | Q2 2023 | Q2 2022 |
YoY % |
YoY % | |||||||
| (unaudited) | (unaudited) |
| (constant currency2) | |||||||
Operating metrics: |
|
|
|
| |||||||
GMV | 5,243 |
| 5,055 |
| 4 | % | 6 | % | |||
MTUs (millions of users) | 34.9 |
| 32.6 |
| 7 | % |
| ||||
GMV per MTU ($) | 150 |
| 155 |
| -3 | % | 0 | % | |||
Partner incentives | 175 |
| 212 |
| -17 | % |
| ||||
Consumer incentives | 245 |
| 311 |
| -21 | % |
| ||||
|
|
|
|
| |||||||
Financial measures: |
|
|
|
| |||||||
Revenue1 | 567 |
| 321 |
| 77 | %1 | 81 | %1 | |||
Loss for the period | (148 | ) | (572 | ) | 74 | % |
| ||||
Total Segment Adjusted EBITDA | 172 |
| (19 | ) | NM |
|
| ||||
Adjusted EBITDA | (20 | ) | (233 | ) | 92 | % |
|
Business Outlook | |
Financial Measure | Guidance |
FY 2023 |
|
Revenue |
$2.20 billion – $2.30 billion |
Adjusted EBITDA |
$(30) million – $(40) million |
|
|
Adjusted EBITDA Breakeven |
|
Adjusted EBITDA Breakeven |
Breakeven in Q3 2023 |
The guidance represents our expectations as of the date of this press release, and may be subject to change.
Segment Financial and Operational Highlights | |||||||||||
Deliveries | |||||||||||
($ in millions, | Q2 2023 | Q2 2022 |
YoY % |
YoY % | |||||||
| (unaudited) | (unaudited) |
| (constant currency) | |||||||
Operating metrics: |
|
|
|
| |||||||
GMV | 2,573 | 2,476 |
| 4 | % | 7 | % | ||||
|
|
|
|
| |||||||
Financial measures: |
|
|
|
| |||||||
Revenue6 | 292 | 134 |
| 118 | %6 | 126 | %6 | ||||
Segment Adjusted EBITDA | 69 | (34 | ) | NM |
|
|
Mobility | ||||||||||
($ in millions, | Q2 2023 | Q2 2022 |
YoY % |
YoY % | ||||||
| (unaudited) | (unaudited) |
| (constant currency) | ||||||
Operating metrics: |
|
|
|
| ||||||
GMV | 1,320 | 1,035 | 28 | % | 30 | % | ||||
|
|
|
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| ||||||
Financial measures: |
|
|
|
| ||||||
Revenue | 208 | 161 | 29 | % | 31 | % | ||||
Segment Adjusted EBITDA | 163 | 125 | 31 | % |
|
Financial Services | ||||||||||||
($ in millions, | Q2 2023 | Q2 2022 |
YoY % |
YoY % | ||||||||
| (unaudited) | (unaudited) |
| (constant currency) | ||||||||
Operating metrics: |
|
|
|
| ||||||||
Pre-Interco Total Payment Volume (TPV) | 3,827 |
| 3,778 |
| 1 | % | 4 | % | ||||
GMV | 1,300 |
| 1,493 |
| -13 | % | -11 | % | ||||
|
|
|
|
| ||||||||
Financial measures: |
|
|
|
| ||||||||
Revenue | 40 |
| 13 |
| 223 | % | 230 | % | ||||
Segment Adjusted EBITDA | (75 | ) | (115 | ) | 35 | % |
|
Enterprise and New Initiatives | ||||||||||
($ in millions, | Q2 2023 | Q2 2022 |
YoY % |
YoY % | ||||||
| (unaudited) | (unaudited) |
| (constant currency) | ||||||
Operating metrics: |
|
|
|
| ||||||
GMV | 50 | 52 | -3 | % | 0 | % | ||||
|
|
|
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| ||||||
Financial measures: |
|
|
|
| ||||||
Revenue | 27 | 14 | 95 | % | 99 | % | ||||
Segment Adjusted EBITDA | 15 | 5 | 203 | % |
|
About Grab
Grab is a leading superapp in Southeast Asia, operating across the deliveries, mobility and digital financial services sectors. According to research done by Euromonitor for Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, Grab remained the category leader in 2022 by GMV in online food deliveries and ride-hailing in Southeast Asia. Serving over 500 cities in eight Southeast Asian countries, Grab enables millions of people to order food or groceries, send packages, hail a ride or taxi, pay for online purchases or access services such as lending and insurance, all through a single app. Grab was founded in 2012 with the mission to drive Southeast Asia forward by creating economic empowerment for everyone, and strives to serve a triple bottom line: to simultaneously deliver financial performance for its shareholders and have a positive social and environmental 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 Grab’s goals, targets, projections, outlooks, beliefs, expectations, strategy, 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, including macro-economic, industry, business, regulatory and other risks, could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to: Grab’s 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, currency exchange fluctuations and inflation; 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 under “Item 3. Key Information – D. Risk Factors” and in other sections of Grab’s annual report on Form 20-F for the year ended December 31, 2022, as well as in 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
Grab’s unaudited selected financial data for the three months and six months ended June 30, 2023 and 2022 included in this document and the investor webcast is based on financial data derived from the Grab’s management accounts that have not been reviewed or audited.
Non-IFRS Financial Measures
This document and the investor webcast include references to non-IFRS financial measures, which include: Adjusted EBITDA, Segment Adjusted EBITDA, Total Segment Adjusted EBITDA and Adjusted EBITDA margin. Grab uses these non-IFRS financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons, and Grab’s 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, Grab’s management uses: Total Segment Adjusted EBITDA as a useful indicator of the economics of Grab’s business segments, as it does not include regional corporate costs. However, there are a number of limitations related to the use of non-IFRS financial measures, and as such, the presentation of these non-IFRS financial measures should not 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. See below for additional explanations about the non-IFRS financial measures, including their definitions and a reconciliation of these measures to the most directly comparable IFRS financial measures. With regard to forward-looking non-IFRS guidance and targets provided in this document and the investor webcast, Grab is unable to provide a reconciliation of these forward-looking non-IFRS measures to the most directly comparable IFRS measures without unreasonable efforts because the information needed to reconcile these measures is dependent on future events, many of which Grab is unable to control or predict.
Explanation of non-IFRS financial measures:
|
Three months ended |
Six months ended | |||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||
($ in millions, unless otherwise stated) | $ | $ | $ | $ | |||||||
Loss for the period | (148 | ) | (572 | ) | (397 | ) | (1,007 | ) | |||
|
|
|
|
| |||||||
Net interest (income)/expenses | (31 | ) | 18 |
| (32 | ) | 45 |
| |||
Net other expenses/(income) | 7 |
| (1 | ) | 5 |
| (3 | ) | |||
Income tax (expenses)/credit | (5 | ) | 2 |
| 7 |
| 3 |
| |||
Depreciation and amortization | 36 |
| 38 |
| 72 |
| 72 |
| |||
Share-based compensation expenses | 65 |
| 111 |
| 168 |
| 231 |
| |||
Unrealized foreign exchange gain | (7 | ) | (4 | ) | (9 | ) | (4 | ) | |||
Impairment losses on goodwill and non-financial | 1 |
| * | * | 3 |
| |||||
Fair value change on investments | 10 |
| 173 |
| 46 |
| 133 |
| |||
Restructuring costs | 50 |
| 1 |
| 51 |
| 1 |
| |||
Legal, tax and regulatory settlement provisions | 2 |
| 1 |
| 3 |
| 6 |
| |||
Adjusted EBITDA | (20 | ) | (233 | ) | (86 | ) | (520 | ) | |||
Regional corporate costs | 192 |
| 214 |
| 408 |
| 426 |
| |||
Total Segment Adjusted EBITDA | 172 |
| (19 | ) | 322 |
| (94 | ) | |||
|
|
|
|
| |||||||
Segment Adjusted EBITDA |
|
|
|
| |||||||
Deliveries | 69 |
| (34 | ) | 129 |
| (90 | ) | |||
Mobility | 163 |
| 125 |
| 315 |
| 207 |
| |||
Financial services | (75 | ) | (115 | ) | (145 | ) | (217 | ) | |||
Enterprise and new initiatives | 15 |
| 5 |
| 23 |
| 6 |
| |||
Total Segment Adjusted EBITDA | 172 |
| (19 | ) | 322 |
| (94 | ) |
* Amount less than $1 million
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.
We compare the percent change in our current period results from the corresponding prior period using constant currency. We present constant currency growth rate information to provide a framework for assessing how our underlying GMV and revenue performed excluding the effect of foreign currency rate fluctuations. We calculate constant currency by translating our current period financial results using the corresponding prior period’s monthly exchange rates for our transacted currencies other than the U.S. dollar.
Operating Metrics
Gross Merchandise Value (GMV) is an operating metric representing the sum of the total dollar value of transactions from Grab’s products and services, including any applicable taxes, tips, tolls, surcharges and fees, over the period of measurement. GMV includes sales made through offline stores. GMV is a metric by which Grab understands, evaluates and manages its business, and Grab’s 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 consumer’s spend that is being directed through Grab’s 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, Grab’s aggregate operating results, which captures significant trends in its business over time.
Total Payments Volume (TPV) means total payments volume received from consumers, which is an operating metric defined as the value of payments, net of payment reversals, successfully completed through our platform.
Monthly Transacting User (MTUs) is defined as the monthly number of unique users who transact via Grab’s apps (including OVO), where transact means to have successfully paid for any of Grab’s products or services. MTUs over a quarterly or annual period are calculated based on the average of the MTUs for each month in the relevant period. Starting in 2023, MTUs additionally include the monthly number of unique users who transact with Grab offline while recording their loyalty points on Grab’s apps. MTUs is a metric by which Grab understands, evaluates and manages its business, and Grab’s management believes is necessary for investors to understand and evaluate its business.
Partner incentives is an operating metric representing the dollar value of incentives granted to driver- and merchant-partners, the effect of which is to reduce revenue. The incentives granted to driver- and merchant-partners include base incentives and excess incentives, with base incentives being the amount of incentives paid to driver- and merchant-partners up to the amount of commissions and fees earned by us from those driver- and merchant-partners, and excess incentives being the amount of payments made to driver- and merchant-partners that exceed the amount of commissions and fees earned by us from those driver- and merchant-partners. For certain delivery offerings where Grab is contractually responsible for delivery services provided to end-users, incentives granted to driver-partners are recognized in cost of revenue.
Consumer incentives is an operating metric representing the dollar value of discounts and promotions offered to consumers, the effect of which is to reduce revenue.
Contacts
For inquiries:
press@grab.com
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