GRAB Q2 2022 Earnings

Call Details

• Call Title: Grab Holdings Limited Q2 2022 Earnings Call
• Date: August 25, 2022 at 12:00 PM UTC
• Management Team:
  • Vivian Tong (Head of U.S. Investor Relations)
  • Anthony Tan (Chief Executive Officer)
  • Peter Oey (Chief Financial Officer)
  • Alex Hungate (Chief Operating Officer)

Call Summary

Financial Performance

• Revenues were $321M in Q2 2022, up 79% year-on-year and 41% quarter-on-quarter, which the company called an all-time high.
• GMV was $5.1B in Q2 2022, up 30% year-on-year and up 34% on a constant currency basis.
• Mobility revenues increased by 37% year-on-year, while deliveries revenues nearly tripled year-on-year and financial services and enterprise grew 94% and 30% respectively.
• Group adjusted EBITDA margin improved from negative 5.5% in Q2 2021 to negative 4.6% in Q2 2022, an improvement of 90 basis points year-on-year and a 136 basis point improvement quarter-on-quarter.
• Reported IFRS loss for the period was $572M, a 29% improvement from a loss of $801M a year ago, and included $317M of non-cash expenses below adjusted EBITDA.
• Of the $317M non-cash below adjusted EBITDA items, $173M was from revaluation of equity investments and $111M was stock-based compensation.
• Gross cash liquidity was $7.7B including a $1.8B term loan B facility, and net cash liquidity was $5.6B with a $476M decline in cash liquidity versus Q1 2022.
• Peter emphasized FX translation impacts on reported results and that revenue and GMV comparisons are stronger on a constant currency basis.

Guidance

• Full-year 2022 revenue guidance was narrowed to the upper end of the prior range at $1.25B to $1.3B.
• Full-year 2022 GMV growth guidance was revised lower to 21% to 25% year-on-year on a reported basis and to 25% to 29% on a constant currency basis, down from the prior 30% to 35% range.
• Third quarter 2022 deliveries GMV was guided to $2.4B to $2.5B, mobility GMV to $1.05B to $1.1B, and financial services TPV to $3.8B to $3.9B.
• Delivery segment adjusted EBITDA break-even was brought forward to Q1 2023, and overall delivery segment break-even was brought forward to Q2 2023, which management stated is one and two quarters earlier than previously announced.
• The company expects sequential improvement in group adjusted EBITDA in the second half of 2022 versus the first half.
• Mobility segment margin was stated as recovered to approximately 12% in Q2 and guided to be maintained at that steady-state level.