GRAB Q3 2023 Earnings

Call Details

• Call Title: Grab Holdings Limited Q3 2023 Earnings Call
• Date: November 9, 2023 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 for Q3 2023 were $615M, up 61% year on year and 8% quarter on quarter.
• On a constant currency basis, group revenues grew 62% year on year and 10% quarter on quarter.
• Group GMV reached $5.3B in Q3 2023, representing 5% year-on-year growth.
• Total segment-adjusted EBITDA was $221M in Q3 2023, improving by $47M year on year.
• Grab reported positive group adjusted EBITDA of $29M for Q3 2023 and an IFRS loss of $99M, improving 71% from a loss of $342M year on year.
• Segment revenues were: Mobility $231M (up 31% YoY, 11% QoQ), Deliveries $306M (up 79% YoY, 5% QoQ), Financial Services $50M (up 156% YoY, 24% QoQ), and Enterprise/New Initiatives $28M (up 83% YoY, 4% QoQ).
• Deliveries GMV was $2.6B in the quarter and mobility GMV is at 91% of pre-COVID levels.
• Gross cash liquidity was $5.9B and net cash liquidity was $5.2B at quarter end, while customer deposits at GXS Bank were $362M and total loans outstanding were $275M.

Guidance

• Grab raised its four-year group revenue target to $2.31B to $2.33B from prior $2.2B to $2.3B.
• Group adjusted EBITDA target was revised to a loss of $20M to $25M from prior guidance of negative $30M to negative $40M.
• Deliveries GMV is expected to grow sequentially in Q4 2023 with segment-adjusted EBITDA margins expected to be consistent with Q3 2023.
• Mobility is expected to record sequential growth heading into year end and to exit 2023 around pre-COVID GMV levels while maintaining segment adjusted EBITDA margins of between 12% to 13%.
• Management declined to provide long-term consolidated EBITDA margin guidance and stated they will focus on steady adjusted EBITDA growth and free cash flow generation.
• No incremental numerical guidance was provided for financial services profitability beyond 'continued improvement' and ongoing Digibank launches.