GRAB Q1 2023 Earnings

Call Details

• Call Title: Grab Holdings Limited Q1 2023 Earnings Call
• Date: May 18, 2023 at 12:00 PM UTC
• Management Team:
  • Vivian Tong (Head of U.S. Investor Relations)
  • Anthony Tan (Chief Executive Officer)
  • Alex Hungate (Chief Operating Officer)
  • Peter Oey (Chief Financial Officer)

Call Summary

Financial Performance

• Group revenues in Q1 grew 130% year on year and 139% constant currency to reach $525 million, representing a 5% quarter-on-quarter increase.
• Group GMV was $5 billion in Q1, which was up 3% year on year and 7% on a constant currency basis.
• Mobility revenues were $194 million, up 72% year on year and 3% quarter on quarter.
• Deliveries revenues were $275 million, up 203% year on year and 3% quarter on quarter.
• Financial services revenue was $38 million, up 233% year on year and up 38% quarter on quarter versus $28 million in Q4.
• Total segment adjusted EBITDA was positive $150 million in Q1 versus a loss of $75 million in the prior year period, and group adjusted EBITDA loss narrowed to $66 million, improving $221 million year on year.
• IFRS loss for the quarter was $250 million, a 43% improvement year on year, which included $172 million of non-cash below-EBITDA items, comprising $103 million of share-based compensation and $37 million of revaluation of equity investments.

Guidance

• The company reaffirmed its target to achieve group adjusted EBITDA break-even in the fourth quarter of 2023.
• Full-year group adjusted EBITDA guidance was revised to a loss between $195 million and $235 million, improved from prior guidance of negative $275 million to $325 million.
• The company expects mobility GMV to reach pre-COVID levels by the fourth quarter of 2023 while maintaining steady-state mobility segment adjusted EBITDA margins of 12%.
• Deliveries steady-state segment adjusted EBITDA margin target remains 3% plus, and management expects deliveries GMV to resume sequential growth in Q2 and into H2 as seasonal headwinds pass.
• Management characterized guidance conservatism explicitly and stated that they will retain flexibility to make marketplace investments if required to keep supply-demand balance healthy.
• Management expects continued sequential mobility growth given tourism recovery and early May demand trends, but did not disclose a detailed quarter-by-quarter adjusted EBITDA bridge.