Grab's Affordable Plans Strikes a Cord With Price Sensitive Users, Deliveries and Mobility Drives 77% Topline Growth In Q2

Grab Holdings Limited GRAB reported second-quarter FY23 revenue growth of 77% year-on-year (81% Y/Y on a constant currency basis) to $567.0 million, beating the consensus of $546.1 million. 

EPS loss of $(0.03) beat the consensus loss of $(0.05).

Revenue for the Deliveries segment rose 118% Y/Y (126% Y/Y on a CC basis) to $292 million, driven by reduced incentives, GMV growth, and a change in the business model. 

Mobility revenue was $208 million, up 29% Y/Y (31% Y/Y on a CC basis) as Southeast Asia opened up. Financial Services revenue rose 223% Y/Y (230% Y/Y on a CC basis) to $40 million. 

Revenue for Enterprise and New Initiatives segment increased by 95% Y/Y (99% Y/Y on a CC basis) to $27 million.

GMV grew 4% Y/Y to reach $5.24 billion. Delivery GMV grew by 4% Y/Y, Mobility GMV grew 28% Y/Y, Financial Services GMV declined by 13 Y/Y, and Enterprise and New Initiatives GMV fell by 3% Y/Y.

MTUs grew by 7% Y/Y to 34.9 million. The average spend per user decreased by 3% Y/Y to $150.

Adjusted EBITDA loss margin was (0.4)% for the quarter, an improvement from (4.6)% loss in the second quarter of 2022. Adjusted EBITDA loss was $(20) million, an improvement of 92% Y/Y.

"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.

Outlook: Grab reiterated FY23 revenue of $2.20 billion - $2.30 billion, up by 54% - 60% Y/Y vs. consensus $2.29 billion. It now expects adjusted EBITDA breakeven in Q3 vs. Q4.

Price Action: GRAB shares traded higher by 4.19% at $3.48 premarket on the last check Wednesday.