GRAB Q2 2024 Earnings

Call Details

• Call Title: Grab Holdings Limited Q2 2024 Earnings Call
• Date: August 15, 2024 at 12:00 PM UTC
• Management Team:
  • Douglas Yu (Director, Investor Relations and Strategic Finance)
  • Anthony Tan (Chief Executive Officer)
  • Alex Hungate (Chief Operating Officer)
  • Peter Oey (Chief Financial Officer)

Call Summary

Financial Performance

• Group revenues in Q2 2024 were $664M, up 17% year-on-year and up 23% on a constant currency basis.
• On-demand GMV in Q2 2024 was $4.4B, up 13% year-on-year and up 18% on a constant currency basis.
• Segment adjusted EBITDA for Q2 2024 was $148M, representing an 84% year-on-year increase.
• Mobility segment adjusted EBITDA was $129M with a mobility EBITDA margin of 8.2% in Q2 2024, down from 8.6% a year ago.
• Deliveries segment adjusted EBITDA was $42M and deliveries EBITDA margin expanded 110 basis points year-on-year to 1.5% of GMV.
• Financial services segment adjusted EBITDA loss narrowed 44% year-on-year to negative $24M in Q2 2024.
• IFRS net loss for Q2 2024 was negative $68M and included $153M of non-cash expenses below adjusted EBITDA, with $82M from share-based compensation.

Guidance

• Grab is maintaining full-year 2024 revenue guidance of $2.7B to $2.75B and adjusted EBITDA guidance of $250M to $270M.
• Company expects to land at the upper end of the adjusted EBITDA guidance range for 2024.
• The 2024 revenue growth outlook of 14% to 17% year-on-year assumes roughly a 3.5 percentage point currency headwind to reported growth.
• Regional corporate costs are now expected to improve year-on-year for 2024 versus prior expectations for them to remain stable.
• Grab expects adjusted free cash flow to be positive for the full year 2024.
• The banks (Digibanks) are expected to break even by no later than the end of 2026.