- Expects revenue to grow by 45%-55% in 2023 on a constant
currency basis
- Details ecosystem-focused strategy at first investor day as it
drives to become Southeast Asia’s largest and most efficient
on-demand platform for local commerce and mobility
Grab Holdings Limited (NASDAQ: GRAB) announced today at its
first Investor Day that it is targeting to achieve breakeven on a
Group Adjusted EBITDA1 basis by the second half of 2024, as it
accelerates its path to profitability. For the second half of 2022,
Group Adjusted EBITDA is expected to be $(380) million, a 27%
improvement compared to the first half of 2022. With a focus on
sustainable growth, Grab also announced that it expects Group
revenues to grow strongly between 45% to 55% year-on-year in 2023
on a constant currency basis2. Grab also expects to reach breakeven
for its Digibank operations by 2026.
Anthony Tan, Chief Executive Officer and Co-Founder,
Grab shared, “We’ve been firing on all cylinders to improve
our profitability trajectory and deliver growth in a sustainable
manner and the new targets we’ve shared today reflect that. Ten
years and ten billion journeys later, we still feel like we are
barely scratching the surface in our mission to drive Southeast
Asia forward. We believe there is a huge runway of growth ahead of
us in serving this region and we are well positioned with our
resources to capitalize on the vast opportunities. We plan to
leverage the power of the superapp ecosystem as a competitive moat
to strengthen our leadership in the region, even as we continue to
optimize our costs. We will drive towards becoming Southeast Asia’s
largest and most efficient on-demand platform that enables local
commerce and mobility.”
Alex Hungate, Chief Operating Officer, Grab added, “We
are driving growth through strategic initiatives like
GrabUnlimited, GrabForBusiness, groceries, local partnerships, and
advertising. At the same time, we are rolling out proprietary
technology to enhance the efficiency of the platform for our
merchants and driver partners. Finally, we plan to focus our
fintech services on our ecosystem where we can serve customers
uniquely well and create a platform for the launch of our
digibanks.”
Executives today detailed a strategic roadmap that includes:
Improving on-demand efficiency across
core verticals
Segment Adjusted EBITDA margins 3 for Mobility have recovered
back to their expected steady state of 12% as of the second quarter
of 2022, and Grab is accelerating deliveries towards Segment
Adjusted EBITDA4 breakeven by the second quarter of 2023 and steady
state margins of 3% and above.
Driver-partner levels are today at approximately 77% of
pre-pandemic levels5. In the near term, Grab is focused on
rebuilding supply to meet the recovery in mobility demand, at the
same time scaling tech and product innovations to maximize the
productivity of every second of available driver time through more
efficient batching, supply positioning, and reducing waiting
time.
Just-in-Time Allocation is a new initiative rolled out in 2022
to improve the accuracy of estimates on food preparation time, and
allocates orders to drivers to ensure they arrive closer to or only
after the food is ready for collection. In July 2022 alone, this
eliminated approximately 12 million minutes of driver-partner wait
time from our network compared to February 2022, when we started
this initiative, freeing up driver capacity to fulfill more orders
and increasing their earnings potential.
Grab plans to continue to build tech-driven efficiency that
allows driver-partners to make shorter stops, deliver larger
batches, and increase overall productivity. As of August 2022, Grab
has seen 19% higher batch rates, as well as an 11% increase in
trips per transit hour6.
Expanding GrabUnlimited as a strategic
growth lever
Bringing together the best of the various services Grab has to
offer, Grab has expanded its pilot monthly subscription program,
GrabUnlimited, to five countries - Indonesia, Malaysia, Singapore,
Thailand and the Philippines7. For a flat monthly fee, users enjoy
benefits and deals across various services on the Grab superapp,
including mobility, food and parcel deliveries.
Grab sees this unique, ecosystem-wide program as a key growth
lever and competitive advantage over monoline providers.
Its early adoption has shown greater user engagement and
retention, larger basket sizes and increased order frequency.
Average GrabFood GMV8 from GrabUnlimited subscribers is 2.4 times
higher than from non-subscribers, with subscribers also transacting
2 times more on average compared to non-subscribers9. Grab’s plans
for GrabUnlimited are to further strengthen the value proposition
of the Grab platform by integrating more services into the
benefits, and to tap on Grab’s vast network of brand partners to
offer specially curated experiences.
Advancing Grab’s supermarket strategy
through new strategic partnership with Trans Retail, one of Indonesia’s largest grocery
retailers
Grab aims to leverage partnerships to drive growth for grocery
and mart deliveries in a cost-sustainable manner, as a key growth
initiative to support its goal to build the largest and most
efficient on-demand platform for mobility and deliveries.
Following its acquisition of a majority economic interest in
Jaya Grocer in Malaysia, Grab has entered a strategic partnership
and investment into PT Trans Retail (Trans Retail), part of a
leading consumer conglomerate group CT Corp and one of Indonesia’s
largest hypermarket chains. The strategic partnership aims to
accelerate the expansion of on-demand grocery delivery while
creating better grocery shopping experiences for consumers in
Indonesia.
Trans Retail operates a network of over 110 hypermarkets and
supermarkets, under the popular brand Transmart, across 28
Indonesian cities. The strategic partnership is expected to see
deeper integration between both companies, where Trans Retail will
integrate all of Grab’s core services into its grocery stores,
while Grab will leverage Trans Retail’s hypermarket infrastructure
to scale on-demand grocery delivery at lower costs.
For example, Grab is closing its existing dark stores and moving
operations to Trans Retail’s facilities, leveraging its vast retail
footprint, warehousing capabilities, and purchasing power to
enhance its current groceries and everyday essentials on demand
offering. This is also expected to reduce Grab’s operating
costs.
Nascent opportunities in enterprise to
boost top and bottom-line;
Grab is now 100% self-sufficient with GrabMaps, with Grab
services in all eight countries now fully powered by Grab's own map
tech and location-based intelligence. Grab estimates this move to
avoid tens of millions of dollars in potential third-party mapping
fees every year.
About Grab
Grab is Southeast Asia’s leading superapp based on GMV in 2021
in each of food deliveries, mobility and the e-wallets segment of
financial services, according to Euromonitor. Grab operates across
the deliveries, mobility and digital financial services sectors in
over 480 cities in eight countries in the Southeast Asia region –
Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore,
Thailand and Vietnam. Grab enables millions of people each day to
access its driver- and merchant-partners to order food or
groceries, send packages, hail a ride or taxi, pay for online
purchases or access services such as lending, insurance, wealth
management and telemedicine, all through a single “everyday
everything” app. Grab was founded in 2012 with the mission to drive
Southeast Asia forward by creating economic empowerment for
everyone, and since then, the Grab app has been downloaded onto
millions of mobile devices. Grab 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 contains “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, including
but not limited to, statements about Grab’s goals, targets,
projections, outlooks, roadmaps, estimations, steady-state
information, beliefs and expectations, business strategy and plans,
objectives of management for future operations of Grab, market
sizes, and growth opportunities. 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 and currency exchange fluctuations; 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 in the “Risk
Factors” section of Grab’s registration statement on Form F-1 and
the prospectus therein, and 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 and Non-IFRS Financial
Measures
Grab’s unaudited selected financial data for the three months
ended June 30, 2022 and 2021 and other interim periods included in
this document is based on financial data derived from the Grab’s
management accounts that have not been reviewed or audited.
This document also includes references to non-IFRS financial
measures, which include: Adjusted EBITDA, Segment Adjusted EBITDA
and Segment Adjusted EBITDA margin. However, the presentation of
these non-IFRS financial measures is not intended to 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.
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: Segment Adjusted
EBITDA as a useful indicator of the economics of Grab’s business
segments, as it does not include regional corporate costs. With
regard to forward-looking non-IFRS guidance and targets provided in
this document, 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.
There are a number of limitations related to the use of non-IFRS
financial measures. In light of these limitations, we provide
specific information regarding the IFRS amounts excluded from these
non-IFRS financial measures and evaluate these non-IFRS financial
measures together with their relevant financial measures in
accordance with IFRS.
This document contains forward-looking statements regarding
Grab’s estimation or expectation of its future revenue on a
constant currency basis. The expected constant currency growth rate
information provides a framework for assessing how Grab estimates
or expects its revenue will perform excluding the effect of foreign
currency rate fluctuations.
Explanation of non-IFRS financial measures:
- Adjusted EBITDA is a non-IFRS financial measure calculated as
net loss adjusted to exclude: (i) interest income (expenses), (ii)
other income (expenses), (iii) income tax expenses (credit), (iv)
depreciation and amortization, (v) share-based compensation
expenses, (vi) costs related to mergers and acquisitions, (vii)
unrealized foreign exchange gain (loss), (viii) impairment losses
on goodwill and non-financial assets, (ix) fair value changes on
investments, (x) restructuring costs, (xi) legal, tax and
regulatory settlement provisions and (xii) share listing and
associated expenses.
- Segment Adjusted EBITDA is a non-IFRS financial measure,
representing the Adjusted EBITDA of each of our four business
segments, excluding, in each case, regional corporate costs.
- Segment Adjusted EBITDA margin is a non-IFRS financial measure
calculated as Segment Adjusted EBITDA divided by Gross Merchandise
Value.
Q2 2022
Q2 2021
1H 2022
1H 2021
($ in millions, unless otherwise
stated)
$
$
$
$
Loss for the period
(572)
(801)
(1,007)
(1,467)
Net interest expenses
18
444
45
864
Other income
(1)
(6)
(3)
(11)
Income tax expenses
2
2
3
3
Depreciation and amortization
38
86
72
170
Share-based compensation expenses
111
106
231
140
Unrealized foreign exchange gain
(4)
(4)
(4)
(4)
Impairment losses on goodwill and
non-financial assets
*
3
3
2
Fair value change on investments
173
(60)
133
(47)
Restructuring costs
1
*
1
*
Legal, tax and regulatory settlement
provisions
1
16
6
25
Adjusted EBITDA
(233)
(214)
(520)
(325)
Regional corporate costs
214
200
426
346
Total Segment Adjusted EBITDA
(19)
(14)
(94)
21
Segment Adjusted EBITDA
Deliveries
(34)
(20)
(90)
(24)
Mobility
125
90
207
205
Financial services
(115)
(85)
(217)
(163)
Enterprise and new initiatives
5
1
6
3
Total Segment Adjusted EBITDA
(19)
(14)
(94)
21
* Amount less than $1 million
[1] Adjusted EBITDA is a non-IFRS financial measure. See
“Unaudited Financial Information and Non-IFRS Financial Measures”
at the end of this press release for its definition and
reconciliations to the most directly comparable IFRS measure.
[2] We apply constant currency to forecasts using 2022 monthly
exchange rates for our transacted currencies other than the U.S.
dollar.
[3] Segment Adjusted EBITDA margin is a non-IFRS financial
measure. See “Unaudited Financial Information and Non-IFRS
Financial Measures” at the end of this press release for its
definition.
[4] Segment Adjusted EBITDA is a non-IFRS financial measure. See
“Unaudited Financial Information and Non-IFRS Financial Measures”
at the end of this press release for its definition and
reconciliations to the most directly comparable IFRS measure.
[5] Active driver-partners in Q2 2022 compared to Q4 2019.
[6] Compared to Q4 2021.
[7] Metro Manila only.
[8] GMV means gross merchandise value, an operating metric
representing the sum of the total dollar value of transactions from
Grab’s services, including any applicable taxes, tips, tolls and
fees, over the period of measurement.
[9] Comparison was made for the month of June 2022, and excludes
the Philippines.
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version on businesswire.com: https://www.businesswire.com/news/home/20220926005855/en/
Media Grab: press@grab.com FGS Global:
Grab@fgsglobal.com Investors Grab:
investor.relations@grab.com Source: Grab Holdings
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