SINGAPORE–(BUSINESS WIRE)–Grab Holdings Limited (NASDAQ: GRAB) today announced unaudited financial results for the quarter ended September 30, 2022.
�Our third-quarter results demonstrate our ability to drive growth and profitability in tandem. We achieved core food deliveries and overall Deliveries segment-adjusted EBITDA breakeven ahead of guidance while narrowing our overall loss for the period significantly. We accomplished this by staying laser-focused on our cost structure and incentives, while innovating on services that increase synergies within our superapp ecosystem to promote transaction frequency, user retention and engagement. We are confident that we have a strong foundation to continue to scale our business sustainably, said Anthony Tan, Group Chief Executive Officer and Co-Founder of Grab.
We are pleased to report a strong third quarter that reflects our accelerated path to profitability. Despite foreign currency translation headwinds and normalizing food delivery demand, our revenue increased 143% year-over-year (YoY), with incentive spend as a percentage of GMV reduced substantively to 9.4%, down from 11.4% for the same period last year. In the quarters ahead, we will continue to focus on cash preservation and cost optimization as we execute on our plans to grow sustainably and drive towards our expectations of 45% – 55% YoY revenue growth in 2023 on a constant currency basis, said Peter Oey, Chief Financial Officer of Grab.
Group Key Operational and Financial Highlights
($ in millions, unless otherwise stated) | Q3 2022 |
| Q3 2021 |
|
YoY % |
YoY % |
| (unaudited) |
| (unaudited) |
|
|
|
Operating metrics: |
|
|
|
|
|
|
GMV | 5,080 |
| 4,038 |
| 26% | 32% |
MTUs (millions of users) | 33.5 |
| 25.9 |
| 30% |
|
GMV per MTU ($) | 151 |
| 156 |
| -3% | 2% |
Partner incentives | 199 |
| 187 |
| 6% |
|
Consumer incentives | 277 |
| 271 |
| 2% |
|
|
|
|
|
|
|
|
Financial measures: |
|
|
|
|
|
|
Revenue | 382 |
| 157 |
| 143% | 156% |
Loss for the period | (342) |
| (988) |
| 65% |
|
Total Segment Adjusted EBITDA | 47 |
| (33) |
| NM |
|
Adjusted EBITDA | (161) |
| (212) |
| 24% |
|
Q4 & FY2022 Business Outlook | |
| |
Operating Metric / Financial Measure | Guidance |
Q4 2022 GMV: |
|
Deliveries | $2.40 billion – $2.50 billion |
Mobility | $1.10 billion – $1.15 billion |
Financial Services TPV (pre-interco) | $3.60 billion – $3.70 billion |
|
|
H2 2022 Adjusted EBITDA: |
|
Adjusted EBITDA |
$(315) million, |
|
|
FY2022: |
|
Revenue |
$1.32 billion – $1.35 billion, |
Group GMV | 22% – 25% YoY 26% – 29% YoY Constant Currency |
The guidance represents our expectations as of the date of this press release, and may be subject to change.
Third Quarter Segment Financial and Operational Highlights | ||||||
Deliveries | ||||||
($ in millions, unless otherwise stated) | Q3 2022 |
| Q3 2021 |
|
YoY % |
YoY % |
| (unaudited) |
| (unaudited) |
|
|
|
Operating metrics: |
|
|
|
|
|
|
GMV | 2,439 |
| 2,318 |
| 5% | 11% |
Commission Rate | 21.2% |
| 18.2% |
|
|
|
|
|
|
|
|
|
|
Financial measures: |
|
|
|
|
|
|
Revenue | 171 |
| 49 |
| 250% | 271% |
Segment Adjusted EBITDA | 9 |
| (22) |
| NM |
|
Mobility | ||||||
($ in millions, unless otherwise stated) | Q3 2022 |
| Q3 2021 |
|
YoY % |
YoY % |
| (unaudited) |
| (unaudited) |
|
|
|
Operating metrics: |
|
|
|
|
|
|
GMV | 1,086 |
| 529 |
| 105% | 115% |
Commission Rate | 23.2% |
| 23.8% |
|
|
|
|
|
|
|
|
|
|
Financial measures: |
|
|
|
|
|
|
Revenue | 176 |
| 88 |
| 101% | 110% |
Segment Adjusted EBITDA | 135 |
| 64 |
| 112% |
|
Financial Services | ||||||
($ in millions, unless otherwise stated) | Q3 2022 |
| Q3 2021 |
|
YoY % |
YoY % |
| (unaudited) |
| (unaudited) |
|
|
|
Operating metrics: |
|
|
|
|
|
|
Pre-Interco Total Payment Volume (TPV) | 3,833 |
| 3,140 |
| 22% | 28% |
GMV | 1,507 |
| 1,150 |
| 31% | 36% |
Commission Rate | 2.9% |
| 2.5% |
|
|
|
|
|
|
|
|
|
|
Financial measures: |
|
|
|
|
|
|
Revenue | 20 |
| 14 |
| 44% | 53% |
Segment Adjusted EBITDA | (104) |
| (76) |
| (38)% |
|
Enterprise and New Initiatives | ||||||
($ in millions, unless otherwise stated) | Q3 2022 |
| Q3 2021 |
| YoY % Change | YoY % Change (Constant Currency) |
| (unaudited) |
| (unaudited) |
|
|
|
Operating metrics: |
|
|
|
|
|
|
GMV | 48 |
| 41 |
| 18% | 23% |
|
|
|
|
|
|
|
Financial measures: |
|
|
|
|
|
|
Revenue | 15 |
| 7 |
| 113% | 127% |
Segment Adjusted EBITDA | 8 |
| 1 |
| 820% |
|
Other Events
Consistent with our disciplined capital allocation approach to preserve cash and chart a clear path to profitability while maintaining a strong balance sheet, Grabs Board of Directors has approved the repurchase of up to $750 million of our outstanding Term Loan B. This loan facility was issued in January 2021, with a five-year tenor and a principal amount of $2 billion. The repurchase is expected to create significant interest expense savings. With $5.3 billion of net cash liquidity as of September 30, 2022, we expect to have ample net cash buffer upon reaching our expected Group Adjusted EBITDA breakeven in the second half of 2024.
____________________________
1 We calculate constant currency bnge rates for our transacted currencies other than the U.S. dollar.
2 Regional corporate costs are costs that are not attributed to any of the business segments, including certain regional research and development expenses, general and administrative expenses and marketing expenses. These regional research and development expenses also include mapping and payment technologies and support and development of the internal technology infrastructure. These general and administrative expenses also include certain shared costs such as finance, accounting, tax, human resources, technology and legal costs. Regional corporate costs exclude share-based compensation expenses.
3 Based on Indonesia, Vietnam and Thailand driver base
4 Commission rate is an operating metric, representing the total dollar value paid to Grab in the form of commissions and fees from each transaction, without any adjustments for incentives paid to driver- and merchant-partners or promotions to end-users, as a percentage of GMV, over the period of measurement.
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 over 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 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 Grabs 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: 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 and currency exchange fluctuations; 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
Grabs unaudited selected financial data for the three months and nine months ended September 30, 2022 and 2021 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.
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 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. 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 |
Nine months ended | ||
| 2022 | 2021 | 2022 | 2021 |
($ in millions, unless otherwise stated) | $ | $ | $ | $ |
Loss for the period | (342) | (988) | (1,349) | (2,454) |
|
|
|
|
|
Net interest expenses | 7 | 472 | 52 | 1,335 |
Other income | 3 | (9) | (1) | (20) |
Income tax expenses | 4 | 4 | 7 | 6 |
Depreciation and amortization | 38 | 86 | 110 | 256 |
Share-based compensation expenses | 90 | 106 | 322 | 247 |
Unrealized foreign exchange gain | (5) | (5) | (10) | (9) |
Impairment losses on goodwill and non-financial assets | * | * | 3 | 1 |
Fair value change on investments | 42 | 113 | 175 | 66 |
Restructuring costs | 2 | 1 | 3 | 1 |
Legal, tax and regulatory settlement provisions | * | 8 | 6 | 33 |
Adjusted EBITDA | (161) | (212) | (682) | (538) |
Regional corporate costs | 208 | 179 | 634 | 526 |
Total Segment Adjusted EBITDA | 47 | (33) | (48) | (12) |
|
|
|
|
|
Segment Adjusted EBITDA |
|
|
|
|
Deliveries | 9 | (22) | (82) | (45) |
Mobility | 135 | 64 | 342 | 268 |
Financial services | (105) | (76) | (322) | (239) |
Enterprise and new initiatives | 8 | 1 | 14 | 4 |
Total Segment Adjusted EBITDA | 47 | (33) | (48) | (12) |
* 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 periods 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 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.
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 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
FGS Global: Grab@fgsglobal.com
Investors
Grab: investor.relations@grab.com
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