Grab Reports Outstanding Second Quarter 2023 Results

Grab Holdings Limited (NASDAQ: GRAB) has released its unaudited financial results for the second quarter ending June 30, 2023, revealing impressive growth and progress.

Cruising to Success: Grab's Stellar Q2 2023 Performance Sets New Standards in the Superapp Industry.

Grab, founded in 2012, is a leading superapp operating across deliveries, mobility, and digital financial services sectors in Southeast Asia. The company serves over 500 cities in eight Southeast Asian countries and strives to create economic empowerment while delivering financial performance and making a positive social and environmental impact in the region.

The company has reported significant year-over-year improvements across various financial metrics, indicating a strong performance in the first half of 2023.

Revenue Surge and Reduced Losses

Grab's Q2 2023 revenue soared by an astounding 77% compared to the same period last year, reaching an impressive $567 million. This remarkable growth was attributed to increases across all segments, optimization of incentives, and a shift in the business model for specific delivery services in one market.

The company's losses for the period have notably improved, with a 74% reduction compared to Q2 2022. The loss for Q2 2023 stood at $148 million, reflecting Grab's ongoing commitment to improving profitability.

Adjusted EBITDA and Guidance

Grab's Adjusted EBITDA for the second quarter of 2023 experienced a remarkable 92% year-over-year improvement, totaling $(20) million. This underscores the company's dedication to achieving financial stability and profitability.

The company has adjusted its guidance for the full year 2023, raising its Group Adjusted EBITDA expectations from a range of $(30) million to $(40) million.

The new guidance reflects Grab's confidence in reaching breakeven sooner than anticipated, with a revised target of achieving Group Adjusted EBITDA breakeven in Q3 2023, ahead of the previous target set for Q4 2023.

Key Operational and Financial Highlights

Grab's second quarter of 2023 showcased impressive operational and financial achievements:

• Gross Merchandise Volume (GMV) increased by 4% year-over-year, or 6% on a constant currency basis.

• Monthly Transacting Users (MTUs) reached a record high of 34.9 million, growing by 7% year-over-year.

• GMV per MTU remained steady at $150.

• Partner incentives decreased by 17% year-over-year, demonstrating Grab's commitment to enhancing marketplace efficiency.

• Consumer incentives also declined, by 21% year-over-year.

Financial Services and Mobility

In the Financial Services segment, Grab reported a significant increase in revenue, growing by 223% year-over-year to $40 million in Q2 2023. This growth was driven by improved monetization of payments and increased contributions from services such as lending.

In the Mobility segment, revenues continued to climb, rising by 29% year-over-year. Mobility Gross Merchandise Volume (GMV) increased by 28% year-over-year, with Grab focusing on improving supply and catering to the demand for ride-hailing services.

Enterprise and New Initiatives

Grab's Enterprise and New Initiatives segment experienced rapid growth, with revenue increasing by 95% year-over-year. This growth was mainly driven by contributions from advertising, which generated approximately $100 million in annualized revenue in Q2 2023.

Cash Liquidity and Business Outlook

Grab maintained strong liquidity, with cash totaling $5.6 billion at the end of Q2 2023. Net cash liquidity was $4.9 billion, ensuring financial stability for the company. Looking ahead, Grab has set a revenue guidance range of $2.20 billion to $2.30 billion for the full year 2023.

The company's adjusted EBITDA guidance has also been updated to $(30) million to $(40) million for the same period.

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