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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Grab Holdings Ltd | NASDAQ:GRAB | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.02 | 0.55% | 3.67 | 3.63 | 3.70 | 3.685 | 3.63 | 3.66 | 64,865,016 | 01:00:00 |
Grab Holdings Limited (NASDAQ: GRAB) today announced unaudited financial results for the second quarter ended June 30, 2023.
“We had a strong set of results for the second quarter. Deliveries GMV grew year-over-year (“YoY”) to hit record-highs, supported by our continued push on key affordability initiatives and an expanding GrabUnlimited subscriber base. More people are using Grab today than ever before, as we achieved our highest Monthly Transacting Users to date,” said Anthony Tan, Group Chief Executive Officer and Co-Founder of Grab. “Looking ahead, we will focus on making our platform more valuable to our driver- and merchant-partners, by providing them with tools and services to become more productive and engaged. Our aim is to continue fostering a flourishing ecosystem that enables them to thrive, while delivering sustainable growth for Grab.”
“We continued on our path to profitability, with Group Revenues growing 77% YoY, while delivering our sixth consecutive quarter of Group Adjusted EBITDA improvement. Against the backdrop of a strong first half along with our focus on driving cost efficiencies and maintaining a strong balance sheet, we are revising our Group Adjusted EBITDA guidance range up by $165 million to $195 million, to $(30) million to $(40) million for the full year 2023,” said Peter Oey, Chief Financial Officer of Grab. “We are on track to achieve Group Adjusted EBITDA breakeven in the third quarter of 2023, ahead of our prior target of the fourth quarter of 2023.”
Group Second Quarter 2023 Key Operational and Financial Highlights
($ in millions, unless otherwise stated)
Q2 2023
Q2 2022
YoY % Change
YoY % Change
(unaudited)
(unaudited)
(constant currency2)
Operating metrics:
GMV
5,243
5,055
4
%
6
%
MTUs (millions of users)
34.9
32.6
7
%
GMV per MTU ($)
150
155
-3
%
0
%
Partner incentives
175
212
-17
%
Consumer incentives
245
311
-21
%
Financial measures:
Revenue1
567
321
77
%1
81
%1
Loss for the period
(148
)
(572
)
74
%
Total Segment Adjusted EBITDA
172
(19
)
NM
Adjusted EBITDA
(20
)
(233
)
92
%
Business Outlook
Financial Measure
Guidance
FY 2023
Revenue
$2.20 billion - $2.30 billion (Unchanged)
Adjusted EBITDA
$(30) million - $(40) million (Previous: $(195) million - $(235) million)
Adjusted EBITDA Breakeven
Adjusted EBITDA Breakeven
Breakeven in Q3 2023 (Previous: Q4 2023)
The guidance represents our expectations as of the date of this press release, and may be subject to change.
Segment Financial and Operational Highlights
Deliveries
($ in millions, unless otherwise stated)
Q2 2023
Q2 2022
YoY % Change
YoY % Change
(unaudited)
(unaudited)
(constant currency)
Operating metrics:
GMV
2,573
2,476
4
%
7
%
Financial measures:
Revenue6
292
134
118
%6
126
%6
Segment Adjusted EBITDA
69
(34
)
NM
Mobility
($ in millions, unless otherwise stated)
Q2 2023
Q2 2022
YoY % Change
YoY % Change
(unaudited)
(unaudited)
(constant currency)
Operating metrics:
GMV
1,320
1,035
28
%
30
%
Financial measures:
Revenue
208
161
29
%
31
%
Segment Adjusted EBITDA
163
125
31
%
Financial Services
($ in millions, unless otherwise stated)
Q2 2023
Q2 2022
YoY % Change
YoY % Change
(unaudited)
(unaudited)
(constant currency)
Operating metrics:
Pre-Interco Total Payment Volume (TPV)
3,827
3,778
1
%
4
%
GMV
1,300
1,493
-13
%
-11
%
Financial measures:
Revenue
40
13
223
%
230
%
Segment Adjusted EBITDA
(75
)
(115
)
35
%
Enterprise and New Initiatives
($ in millions, unless otherwise stated)
Q2 2023
Q2 2022
YoY % Change
YoY % Change
(unaudited)
(unaudited)
(constant currency)
Operating metrics:
GMV
50
52
-3
%
0
%
Financial measures:
Revenue
27
14
95
%
99
%
Segment Adjusted EBITDA
15
5
203
%
About Grab
Grab is a leading superapp in Southeast Asia, operating across the deliveries, mobility and digital financial services sectors. According to research done by Euromonitor for Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, Grab remained the category leader in 2022 by GMV in online food deliveries and ride-hailing in Southeast Asia. Serving over 500 cities in eight Southeast Asian countries, Grab enables millions of people to order food or groceries, send packages, hail a ride or taxi, pay for online purchases or access services such as lending and insurance, all through a single app. Grab was founded in 2012 with the mission to drive Southeast Asia forward by creating economic empowerment for everyone, and strives to serve a triple bottom line: to simultaneously deliver financial performance for its shareholders and have a positive social and environmental impact in Southeast Asia.
Forward-Looking Statements
This document and the announced investor webcast contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this document and the webcast, including but not limited to, statements about Grab’s goals, targets, projections, outlooks, beliefs, expectations, strategy, plans, objectives of management for future operations of Grab, and growth opportunities, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “anticipate,” “expect,” “suggest,” “plan,” “believe,” “intend,” “estimate,” “target,” “project,” “should,” “could,” “would,” “may,” “will,” “forecast” or other similar expressions. Forward-looking statements are based upon estimates and forecasts and reflect the views, assumptions, expectations, and opinions of Grab, which involve inherent risks and uncertainties, and therefore should not be relied upon as being necessarily indicative of future results. A number of factors, including macro-economic, industry, business, regulatory and other risks, could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to: Grab’s ability to grow at the desired rate or scale and its ability to manage its growth; its ability to further develop its business, including new products and services; its ability to attract and retain partners and consumers; its ability to compete effectively in the intensely competitive and constantly changing market; its ability to continue to raise sufficient capital; its ability to reduce net losses and the use of partner and consumer incentives, and to achieve profitability; potential impact of the complex legal and regulatory environment on its business; its ability to protect and maintain its brand and reputation; general economic conditions, in particular as a result of COVID-19, currency exchange fluctuations and inflation; expected growth of markets in which Grab operates or may operate; and its ability to defend any legal or governmental proceedings instituted against it. In addition to the foregoing factors, you should also carefully consider the other risks and uncertainties described under “Item 3. Key Information – D. Risk Factors” and in other sections of Grab’s annual report on Form 20-F for the year ended December 31, 2022, as well as in other documents filed by Grab from time to time with the U.S. Securities and Exchange Commission (the “SEC”).
Forward-looking statements speak only as of the date they are made. Grab does not undertake any obligation to update any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required under applicable law.
Unaudited Financial Information
Grab’s unaudited selected financial data for the three months and six months ended June 30, 2023 and 2022 included in this document and the investor webcast is based on financial data derived from the Grab’s management accounts that have not been reviewed or audited.
Non-IFRS Financial Measures
This document and the investor webcast include references to non-IFRS financial measures, which include: Adjusted EBITDA, Segment Adjusted EBITDA, Total Segment Adjusted EBITDA and Adjusted EBITDA margin. Grab uses these non-IFRS financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons, and Grab’s management believes that these non-IFRS financial measures provide meaningful supplemental information regarding its performance by excluding certain items that may not be indicative of its recurring core business operating results. For example, Grab’s management uses: Total Segment Adjusted EBITDA as a useful indicator of the economics of Grab’s business segments, as it does not include regional corporate costs. However, there are a number of limitations related to the use of non-IFRS financial measures, and as such, the presentation of these non-IFRS financial measures should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with IFRS. In addition, these non-IFRS financial measures may differ from non-IFRS financial measures with comparable names used by other companies. See below for additional explanations about the non-IFRS financial measures, including their definitions and a reconciliation of these measures to the most directly comparable IFRS financial measures. With regard to forward-looking non-IFRS guidance and targets provided in this document and the investor webcast, Grab is unable to provide a reconciliation of these forward-looking non-IFRS measures to the most directly comparable IFRS measures without unreasonable efforts because the information needed to reconcile these measures is dependent on future events, many of which Grab is unable to control or predict.
Explanation of non-IFRS financial measures:
Three months ended June 30,
Six months ended June 30,
2023
2022
2023
2022
($ in millions, unless otherwise stated)
$
$
$
$
Loss for the period
(148
)
(572
)
(397
)
(1,007
)
Net interest (income)/expenses
(31
)
18
(32
)
45
Net other expenses/(income)
7
(1
)
5
(3
)
Income tax (expenses)/credit
(5
)
2
7
3
Depreciation and amortization
36
38
72
72
Share-based compensation expenses
65
111
168
231
Unrealized foreign exchange gain
(7
)
(4
)
(9
)
(4
)
Impairment losses on goodwill and non-financial assets
1
*
*
3
Fair value change on investments
10
173
46
133
Restructuring costs
50
1
51
1
Legal, tax and regulatory settlement provisions
2
1
3
6
Adjusted EBITDA
(20
)
(233
)
(86
)
(520
)
Regional corporate costs
192
214
408
426
Total Segment Adjusted EBITDA
172
(19
)
322
(94
)
Segment Adjusted EBITDA
Deliveries
69
(34
)
129
(90
)
Mobility
163
125
315
207
Financial services
(75
)
(115
)
(145
)
(217
)
Enterprise and new initiatives
15
5
23
6
Total Segment Adjusted EBITDA
172
(19
)
322
(94
)
* Amount less than $1 million
This document and the investor webcast also includes “Pre-InterCo” data that does not reflect elimination of intragroup transactions, which means such data includes earnings and other amounts from transactions between entities within the Grab group that are eliminated upon consolidation. Such data differs materially from the corresponding figures post-elimination of intra-group transactions.
We compare the percent change in our current period results from the corresponding prior period using constant currency. We present constant currency growth rate information to provide a framework for assessing how our underlying GMV and revenue performed excluding the effect of foreign currency rate fluctuations. We calculate constant currency by translating our current period financial results using the corresponding prior period’s monthly exchange rates for our transacted currencies other than the U.S. dollar.
Operating Metrics
Gross Merchandise Value (GMV) is an operating metric representing the sum of the total dollar value of transactions from Grab’s products and services, including any applicable taxes, tips, tolls, surcharges and fees, over the period of measurement. GMV includes sales made through offline stores. GMV is a metric by which Grab understands, evaluates and manages its business, and Grab’s management believes is necessary for investors to understand and evaluate its business. GMV provides useful information to investors as it represents the amount of a consumer’s spend that is being directed through Grab’s platform. This metric enables Grab and investors to understand, evaluate and compare the total amount of customer spending that is being directed through its platform over a period of time. Grab presents GMV as a metric to understand and compare, and to enable investors to understand and compare, Grab’s aggregate operating results, which captures significant trends in its business over time.
Total Payments Volume (TPV) means total payments volume received from consumers, which is an operating metric defined as the value of payments, net of payment reversals, successfully completed through our platform.
Monthly Transacting User (MTUs) is defined as the monthly number of unique users who transact via Grab’s apps (including OVO), where transact means to have successfully paid for any of Grab’s products or services. MTUs over a quarterly or annual period are calculated based on the average of the MTUs for each month in the relevant period. Starting in 2023, MTUs additionally include the monthly number of unique users who transact with Grab offline while recording their loyalty points on Grab's apps. MTUs is a metric by which Grab understands, evaluates and manages its business, and Grab’s management believes is necessary for investors to understand and evaluate its business.
Partner incentives is an operating metric representing the dollar value of incentives granted to driver- and merchant-partners, the effect of which is to reduce revenue. The incentives granted to driver- and merchant-partners include base incentives and excess incentives, with base incentives being the amount of incentives paid to driver- and merchant-partners up to the amount of commissions and fees earned by us from those driver- and merchant-partners, and excess incentives being the amount of payments made to driver- and merchant-partners that exceed the amount of commissions and fees earned by us from those driver- and merchant-partners. For certain delivery offerings where Grab is contractually responsible for delivery services provided to end-users, incentives granted to driver-partners are recognized in cost of revenue.
Consumer incentives is an operating metric representing the dollar value of discounts and promotions offered to consumers, the effect of which is to reduce revenue. Partner incentives and consumer incentives are metrics by which we understand, evaluate and manage our business, and we believe are necessary for investors to understand and evaluate our business. We believe these metrics capture significant trends in our business over time.
Industry and Market Data
This document also contains information, estimates and other statistical data derived from third party sources (including Euromonitor), including research, surveys or studies, some of which are preliminary drafts, conducted by third parties, information provided by customers and/or industry or general publications. Such information involves a number of assumptions and limitations and due to the nature of the techniques and methodologies used in market research, and as such neither Grab nor the third-party sources (including Euromonitor) can guarantee the accuracy of such information. You are cautioned not to give undue weight on such estimates. Grab has not independently verified such third-party information, and makes no representation as to the accuracy of such third-party information.
Unaudited Summary of Financial Results
Condensed consolidated statement of profit or loss and other comprehensive income
Three months ended June 30,
Six months ended June 30,
2023
2022
2023
2022
($ in millions, except for share amounts which are reflected in thousands and per share data)
$
$
$
$
Revenue
567
321
1,092
549
Cost of revenue
(376
)
(337
)
(747
)
(647
)
Other income
3
3
6
6
Sales and marketing expenses
(63
)
(72
)
(133
)
(142
)
General and administrative expenses
(137
)
(162
)
(285
)
(331
)
Research and development expenses
(91
)
(120
)
(219
)
(239
)
Restructuring costs
(50
)
(1
)
(51
)
(1
)
Net impairment losses on financial assets
(20
)
(15
)
(33
)
(22
)
Other expenses
(9
)
(1
)
(10
)
(1
)
Operating loss
(176
)
(384
)
(380
)
(828
)
Finance income
53
23
102
32
Finance costs
(18
)
(35
)
(63
)
(72
)
Net change in fair value of financial assets and liabilities
(10
)
(173
)
(46
)
(133
)
Net finance costs
25
(185
)
(7
)
(173
)
Share of loss of equity-accounted investees (net of tax)
(2
)
(1
)
(3
)
(3
)
Loss before income tax
(153
)
(570
)
(390
)
(1,004
)
Income tax credit/(expense)
5
(2
)
(7
)
(3
)
Loss for the period
(148
)
(572
)
(397
)
(1,007
)
Items that will not be reclassified to profit or loss:
Defined benefit plan remeasurements
(1
)
*
(1
)
*
Investments and put liabilities at FVOCI – net change in fair value
5
-
(6
)
-
Items that are or may be reclassified subsequently to profit or loss:
Foreign currency translation differences – foreign operations
(41
)
(49
)
(14
)
(54
)
Other comprehensive loss for the period, net of tax
(37
)
(49
)
(21
)
(54
)
Total comprehensive loss for the period
(185
)
(621
)
(418
)
(1,061
)
Loss attributable to:
Owners of the Company
(135
)
(547
)
(378
)
(970
)
Non-controlling interests
(13
)
(25
)
(19
)
(37
)
Loss for the period
(148
)
(572
)
(397
)
(1,007
)
Total comprehensive loss attributable to:
Owners of the Company
(168
)
(595
)
(393
)
(1,024
)
Non-controlling interests
(17
)
(26
)
(25
)
(37
)
Total comprehensive loss for the period
(185
)
(621
)
(418
)
(1,061
)
Loss per share:
Basic
$
(0.03
)
$
(0.15
)
$
(0.10
)
$
(0.26
)
Diluted
$
(0.03
)
$
(0.15
)
$
(0.10
)
$
(0.26
)
Weighted-average ordinary shares outstanding:
Basic
3,900,066
3,825,093
3,877,027
3,793,892
Diluted
3,900,066
3,825,093
3,877,027
3,793,892
* Amount less than $1 million
As we incurred a net loss for the period ended June 30, 2023, basic loss per share was the same as diluted loss per share.
The number of outstanding Class A and Class B ordinary shares was 3,791 million and 113 million for the period ended June 30, 2023. 362 million potentially dilutive outstanding securities were excluded from the computation of diluted loss per ordinary share because their effects would have been antidilutive for the period ended June 30, 2023, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period.
Condensed consolidated statement of financial position
June 30, 2023
December 31, 2022
($ in millions, unless otherwise stated)
$
$
Non-current assets
Property, plant, and equipment
469
492
Intangible assets and goodwill
913
904
Associates and joint venture
107
107
Deferred tax assets
38
20
Other investments
1,356
1,742
Prepayments and other assets
194
217
3,077
3,482
Current assets
Inventories
45
48
Trade and other receivables
362
372
Prepayments and other assets
241
182
Other investments
2,286
3,134
Cash and cash equivalents
2,282
1,952
5,216
5,688
Total assets
8,293
9,170
Equity
Share capital and share premium
22,603
22,278
Reserves
443
602
Accumulated losses
(16,675
)
(16,277
)
Equity attributable to owners of the Company
6,371
6,603
Non-controlling interests
20
54
Total equity
6,391
6,657
Non-current liabilities
Loans and borrowings
658
1,248
Provisions
18
18
Other liabilities
131
132
Deferred tax liabilities
19
18
826
1,416
Current liabilities
Loans and borrowings
114
117
Provisions
39
38
Trade and other payables
905
933
Current tax liabilities
18
9
1,076
1,097
Total liabilities
1,902
2,513
Total equity and liabilities
8,293
9,170
Condensed consolidated statement of cash flow
Three months ended June 30,
Six months ended June 30,
2023
2022
2023
2022
($ in millions, unless otherwise stated)
$
$
$
$
Cash flows from operating activities
Loss before income tax
(153
)
(570
)
(390
)
(1,004
)
Adjustments for:
Amortization of intangible assets
4
5
9
10
Depreciation of property, plant and equipment
32
32
63
62
Impairment of property, plant and equipment
1
*
*
3
Equity-settled share-based payments
65
111
168
231
Finance costs
18
35
63
72
Net change in fair value of financial assets and liabilities
10
173
46
133
Net impairment loss on financial assets
20
15
33
22
Finance income
(53
)
(23
)
(102
)
(32
)
Gain on disposal of property, plant and equipment
(3
)
*
(4
)
*
Restructuring costs
50
-
51
-
Share of loss of equity-accounted investees (net of tax)
2
1
3
3
Change in provisions
(1
)
(1
)
1
1
(8
)
(222
)
(59
)
(499
)
Changes in:
- Inventories
3
(1
)
4
7
- Deposits pledged
(7
)
1
(10
)
1
- Trade and other receivables
(28
)
(53
)
(46
)
(168
)
- Trade payables and other liabilities
(3
)
21
(82
)
(36
)
Cash used in operations
(43
)
(254
)
(193
)
(695
)
Income tax paid
(8
)
(5
)
(14
)
(10
)
Net cash used in operating activities
(51
)
(259
)
(207
)
(705
)
Cash flows from investing activities
Acquisition of property, plant and equipment
(14
)
(10
)
(20
)
(20
)
Purchase of intangible assets
(11
)
(4
)
(18
)
(7
)
Proceeds from disposal of property, plant and equipment
8
2
13
5
Acquisition of businesses, net of cash acquired
-
9
-
(166
)
Acquisition of additional interest in associates and joint venture
-
(35
)
-
(35
)
Net proceeds from/ (acquisition of) other investments
52
(144
)
1,204
(1,035
)
Interest received
37
8
74
17
Net cash from/(used in) investing activities
72
(174
)
1,253
(1,241
)
Cash flows from financing activities
Proceeds from share-based payment arrangements
9
*
12
*
Payment of listing expenses
-
-
-
(39
)
Proceeds from bank loans
25
35
49
65
Repayment of bank loans
(40
)
(111
)
(668
)
(149
)
Payment of lease liabilities
(11
)
(9
)
(20
)
(16
)
Acquisition of non-controlling interests without change in control
(27
)
-
(27
)
-
Deposits pledged
1
2
(2
)
7
Interest paid
(16
)
(34
)
(47
)
(71
)
Net cash used in financing activities
(59
)
(117
)
(703
)
(203
)
Net (decrease)/increase in cash and cash equivalents
(38
)
(550
)
343
(2,149
)
Cash and cash equivalents at beginning of the period
2,351
3,387
1,952
4,991
Effect of exchange rate fluctuations on cash held
(31
)
(44
)
(13
)
(49
)
Cash and cash equivalents at end of the period
2,282
2,793
2,282
2,793
* Amount less than $1 million
1 Deliveries Revenues benefited in Q2 2023 due to a business model change implemented in Q4 2022 for certain delivery offerings in one of our markets from being an agent arranging for delivery services provided by our driver-partners to end-users, to being a principal whereby Grab is the delivery service provider contractually responsible for the delivery services provided to end-users. Assuming the change in business model had occurred in 2022, Q2 2023 Group revenue growth would have been 43% YoY.
2 We calculate constant currency by translating our current period financial results using the corresponding prior period’s monthly exchange rates for our transacted currencies other than the U.S. dollar.
3 Regional corporate costs are costs that have not been attributed to any of the business segments, including certain costs of revenue, research and development expenses, general and administrative expenses and marketing expenses. These regional costs of revenue include cloud computing costs. These regional research and development expenses also include mapping and payment technologies and support and development of the internal technology infrastructure. These general and administrative expenses also include certain shared costs such as finance, accounting, tax, human resources, technology and legal costs. Regional corporate costs exclude share-based compensation expenses and capitalized software costs.
4 Cash liquidity includes cash on hand, time deposits and marketable securities.
5 Net cash liquidity includes cash liquidity less loans and borrowings.
6 Deliveries Revenues benefited in Q2 2023 due to a business model change implemented in Q4 2022 for certain delivery offerings in one of our markets from being an agent arranging for delivery services provided by our driver-partners to end-users, to being a principal whereby Grab is the delivery service provider contractually responsible for the delivery services provided to end-users. Assuming the change in business model had occurred in 2022, Q2 2023 Deliveries revenue growth would have been 39% YoY.
7 Average 6-month retention rates of GrabUnlimited subscribers in Indonesia, Malaysia, Philippines, Singapore and Thailand over the first half of 2023.
8 Surged Mobility rides are defined as completed rides where demand exceeds supply in a specified region and/or where pricing regulations adherence is required.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230823627596/en/
For inquiries: press@grab.com
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