Grab Holdings Limited (NASDAQ: GRAB) announced unaudited financial results for the second quarter ended June 30, 2024.
Anthony Tan, Group Chief Executive Officer and Co-Founder of Grab said:
“We continued to harness the strength of the Grab ecosystem, and improved the usage frequency and reliability of our products and services. During the quarter, we achieved a new milestone, serving more users than ever at a record high of 41 million MTUs while delivering continued profitable growth at scale. Looking ahead, we are seeing continued strength in the Southeast Asian economy and will continue to leverage our key product initiatives to serve more users in the region, while also driving cost discipline across our business.”
Peter Oey, Chief Financial Officer of Grab:
“We delivered robust top-line growth across all of our segments, with On-Demand GMV growing 18% year-over-year on a constant currency basis to reach another all-time high. This was driven by strong demand growth as we increased On-Demand transactions by 22% year-over-year and drove cross usage of our products. We also achieved our tenth consecutive quarter of Adjusted EBITDA growth and our second quarter of positive Adjusted Free Cash Flow. We now expect to achieve positive Adjusted Free Cash Flow for the full year 2024.”
Group Second Quarter 2024 Key Operational and Financial Highlights
- Revenue grew 17% year-over-year to $664 million in the second quarter of 2024, or 23% on a constant currency basis3, driven by revenue growth across all segments.
- On-Demand GMV grew 13% YoY, or 18% YoY on a constant currency basis, underpinned by growth in average user frequency and total transactions, with On-Demand MTUs growing by 19% YoY.
- Total incentives were $452 million in the second quarter of 2024, with incentives primarily attributable to the On-Demand segments. On-Demand incentives as a proportion of On-Demand GMV declined to 10.1% in the second quarter, compared to 10.5% in the same period in 2023, reflecting our focus on reducing our cost to serve while improving the health of our marketplace.
- Operating loss in the second quarter was $56 million, an improvement of $121 million YoY, primarily attributable to improvements in revenue and lower restructuring expenses.
- Loss for the quarter was $68 million, an improvement of $79 million YoY, primarily due to an improvement in Group Adjusted EBITDA, partially offset by an increase in income tax expense. Our loss for the quarter included $82 million in non-cash share-based compensation expenses.
Their key ESG highlights in 2023 include “recording 99.99% of all rides occurring without any safety incidents, and reducing or recycling over 7,365 tons of single-use plastics.”
Financial Services
- Revenue for Financial Services grew 54% YoY, or 61% YoY on a constant currency basis, to $60 million in the second quarter of 2024. The YoY growth was driven by increased contributions mainly from lending across GrabFin and Digibank, and further optimization of payments incentive spend.
- Segment adjusted EBITDA for the quarter improved by 44% YoY to negative $24 million, attributed to the improved growth and monetization of our lending products that drove higher revenues and margins, along with reductions in overhead expenses as we continue to optimize costs.
Grab says that it “continued to focus on lending to our ecosystem partners through GrabFin and our Digibanks, with total loans disbursed growing by 43% YoY and 4% QoQ to $500 million during the quarter.”
Their total loan portfolio outstanding at the end of “the second quarter grew 71% YoY to $397 million from $233 million in the prior year period.”
Customer deposits in thei digital bank business “grew strongly to $730 million in the second quarter from $33 million in the same period last year and from $479 million in the prior quarter.”
The strong growth was mainly driven “by an increased number of deposit customers in both GXS Bank and GXBank, our digital bank in Malaysia.”
In less than a year since its public launch, GXBank has over 750,000 deposit customers “which include more than 500,000 GXBank Debit cardholders as of July 2024.”
As covered, Grab is a superapp in Southeast Asia, “operating across the deliveries, mobility and digital financial services sectors. Serving over 700 cities in eight Southeast Asian countries – Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam – Grab enables millions of people everyday 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.”
Grab strives to serve a triple bottom line – they aim to “simultaneously deliver financial performance for our shareholders and have a positive social impact, which includes economic empowerment for millions of people in the region, while mitigating our environmental footprint.”