GRAB Q4 2021 Earnings

Call Details

• Call Title: Grab Holdings Limited Q4 2021 Earnings Call
• Date: March 3, 2022 at 1:00 PM UTC
• Management Team:
  • Vivian Tong (Head of U.S. Investor Relations)
  • Anthony Tan (Chief Executive Officer)
  • Ming Maa (President)
  • Peter Oey (Chief Financial Officer)

Call Summary

Financial Performance

• Full year 2021 total GMV was $16.1B, which exceeded the company's GMV guidance for the year.
• Fourth quarter 2021 GMV was $4.5B, representing growth of 26% year-over-year.
• Deliveries GMV for 2021 finished at $8.5B, up 56% year-over-year for the full year.
• Mobility GMV for the full year 2021 finished at $2.8B, and mobility GMV in Q4 grew 45% quarter-on-quarter.
• Total payments volume (TPV) for 2021 was $12.1B, up 37% year-over-year.
• IFRS revenue for 2021 was $675M, up 44% year-over-year from $469M, while IFRS loss was $1.1B in Q4 and $3.6B for the full year.
• Q4 segment-adjusted EBITDA was a $113M loss versus a $49M loss in Q4 2020, driven by reinvestments in incentives.
• The company reported $9.0B of cash liquidity at the end of Q4 2021 and net cash liquidity of $6.8B.

Guidance

• First quarter 2022 guidance expects deliveries GMV of $2.4B to $2.5B, mobility GMV of $750M to $800M, and financial services TPV of $3.1B to $3.2B.
• The company expects group GMV growth for each quarter from Q2 to Q4 2022 to accelerate to 30% to 35% year-over-year, subject to COVID recovery.
• The company expects deliveries segment adjusted EBITDA to reach breakeven by end of 2023, with core food deliveries expected to reach breakeven by first half of 2023.
• Long-term segment-adjusted EBITDA margin targets are 12% of GMV for mobility and 3% of GMV for deliveries.
• The first quarter guidance incorporates potential minor COVID-related disruptions and continued targeted reinvestments into driver supply and delivery initiatives.
• The company stated that some elevated investment levels are expected to continue into Q1 and Q2 2022 but are not expected to persist in the long run.
• Jaya Grocer acquisition was closed at end of January 2022 and two months of its GMV and revenue were included in the guidance.