Grab Holdings Surges as Q3 Revenue Outperforms with a 61% Increase

Grab Holdings Limited GRAB has recently publicized its financial outcomes for the third quarter of the fiscal year 2023, causing a notable buzz in the investment community. The company reported a remarkable year-on-year revenue increase of 61%, achieving $615 million for the quarter. This growth not only signifies a considerable upswing from the previous year but also impressively exceeds the market consensus of $590.6 million. When accounting for constant currency fluctuations, the year-on-year revenue growth marginally ticks up to 62%.

Financial Highlights and Segment Performance

Grab's third-quarter earnings per share (EPS) logged a loss of $0.02, falling in alignment with the consensus estimates. A significant contributor to the surge in revenue was the Deliveries segment, which saw a year-on-year increase of 79% (82% on a constant currency basis), totaling $306 million. This growth is attributed to a strategic reduction in incentives, robust Gross Merchandise Volume (GMV) expansion, and a transformative change in its business model.

In parallel, the Mobility revenue demonstrated a substantial 31% uptick to $231 million, propelled by increasing activity across Southeast Asia as countries continue to reopen post-pandemic restrictions. Reporting even more pronounced growth, the Financial Services revenue skyrocketed by 156% year-on-year, reaching a milestone of $50 million.

The Enterprise and New Initiatives segment was not left behind, observing an 83% year-on-year increase, with revenue touching $28 million. Overall, Grab's accumulated GMV for the quarter rose by 5% year-on-year to $5.34 billion. This was distributed across various segments with Delivery GMV up by 7%, Mobility GMV rising 30%, a slight 15% decline in Financial Services GMV, and Enterprise and New Initiatives GMV climbing by 4%.

User Growth and Profitability

Monthly Transacting Users (MTUs) saw a healthy 7% year-on-year growth, reaching 36 million users. However, there was a 2% decrease in average spend per user, which came in at $148 for the period. Notably, the company marked a great achievement as it registered its first Adjusted EBITDA profitable quarter, with Group Adjusted EBITDA growing to $29 million.

According to Grab's CFO, Peter Oey, the notable growth in revenue and the expansion of Adjusted EBITDA margin within the Deliveries Segment have been pivotal in this quarter's performance. The company's diverse offerings have evidently contributed to its robust financial standing.

Future Outlook

In response to these robust financial results, Grab has adjusted its revenue outlook for the full fiscal year 2023. The company now anticipates revenue to be between $2.31 billion and $2.33 billion, up from its previous forecast ranging from $2.20 billion to $2.30 billion, which aligns with the consensus of $2.33 billion.

Originating as a taxi-hailing application, Grab has significantly expanded its services over the years. The company now provides a vast array of offerings, including ride-hailing, and the delivery of food, groceries, and packages, alongside various financial services.

In regard to market activity, shares of GRAB experienced a positive movement, rising by 4.55% to $3.34, reflecting investors' optimistic response to the company's latest financial achievements.

revenue, growth, profitability