GRAB Q4 2022 Earnings

Call Details

• Call Title: Grab Holdings Limited Q4 2022 Earnings Call
• Date: February 23, 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 Q4 grew 310% year-on-year to $502M and grew 346% on a constant currency basis.
• Four-year reported revenues grew 112% to $1.4B, or 125% on a constant currency basis.
• Group GMV in Q4 reached $5.0B, up 11% year-on-year and up 20% on a constant currency basis, while full year GMV grew 24% to around $20B (30% CC).
• Total segment adjusted EBITDA was $112M in Q4 and $65M for the full year 2022.
• Group adjusted EBITDA for Q4 was a loss of $111M and the four-quarter group adjusted EBITDA loss was $793M.
• IFRS loss in Q4 was $391M, a 64% improvement versus $1.1B loss a year ago, and included $263M of non-cash expenses below adjusted EBITDA comprising $119M revaluation of GREP investments and $19M stock-based compensation.
• Gross cash liquidity at quarter end was $6.5B and net cash liquidity was $5.1B after a $738M repurchase of Term Loan B.

Guidance

• Group adjusted EBITDA breakeven is now expected in Q4 2023, which was brought forward from prior guidance of the second half of 2024.
• Full year 2023 group revenue guidance is $2.2B to $2.3B, implying 54% to 60% year-on-year growth on a headline basis.
• Excluding the change in business model, 2023 revenue growth remains in line with prior guidance of 45% to 55% year-on-year on a constant currency basis.
• 2023 group adjusted EBITDA loss is guided to negative $275M to negative $325M, representing a $468M to $518M year-on-year reduction in adjusted EBITDA losses.
• Mobility GMV is expected to reach pre-COVID levels by Q4 2023.
• Deliveries long-term target remains segment-adjusted EBITDA margins of 3% plus of deliveries GMV.
• On-demand GMV (mobility plus deliveries) is expected to be seasonally stronger in the second half of 2023 versus the first half due to festivals such as Chinese New Year and Ramadan.