Revenue grew 24% year-over-year, or 29% on a constant currency basis to $653 million On-Demand GMV grew 18% year-over-year, or 21% on a constant currency basis to $4.2 billion Operating Loss improved by $129 million year-over-year to $(75) million Adjusted EBITDA improved by $129 million year-over-year to an all-time high of $62 million 2024 Adjusted EBITDA guidance raised to $250 – $270 million from $180 – $200 million previously SINGAPORE, May 16, 2024 (GLOBE NEWSWIRE) -- Grab Holdings Limited (NASDAQ:GRAB) today announced unaudited financial results for the first quarter ended March 31, 2024. "Our focus on product-led growth is bearing fruit, with On-Demand GMV scaling to new highs in spite of the seasonal impact we usually see in the first quarter of the year. Our push on affordability and reliability is pulling more people onto our platform and driving up order frequency. We also continue to see our partner earnings trending up," said Anthony Tan, Group Chief Executive Officer and Co-Founder of Grab. "We continue to strengthen our category position and we will leverage this scale and our technological edge to serve our users and partners better." "We continued to drive profitable growth in the first quarter, as we achieved another record Adjusted EBITDA," said Peter Oey, Chief Financial Officer of Grab. "As we drive growth across our business, we remain focused on continued improvements in profitability as demonstrated by our ninth consecutive quarter of Group Adjusted EBITDA expansion while improving shareholder returns and managing our balance sheet. Pursuant to our $500 million share repurchase program, we have repurchased approximately $97 million worth of Class A ordinary shares in March, and also paid down the remaining $497 million balance of our Term Loan B." Changes to Segment Reporting As announced in the prior quarter, beginning with this first quarter 2024, Grab made a number of reporting changes to align with changes in how we are managing and evaluating the performance of our business and to facilitate comparison with our industry peers. As part of the segment reporting changes, we have discontinued the reporting of GMV for our Financial Services segment, consistent with our strategic focus on ecosystem transactions and lending for GrabFin and our digital banks, and we limit our GMV reporting to our On-Demand businesses. Additionally, Advertising contributions previously reported within the Enterprise and New Initiatives segment are now reported in the respective Mobility, Deliveries and Financial Services segments in accordance with the relevant Advertising products. Other reporting changes made include a portion of payment transaction revenues and transaction costs (which we refer to as the net cost of funds) and other relevant support costs previously reported in our Financial Services segment that relate to Mobility and Deliveries transactions now being allocated to the respective Mobility and Deliveries segments. Selected regional corporate costs that support our Mobility, Deliveries and Financial Services segments are now also allocated to these respective segments. After the aforementioned reporting updates are made, Grab's four reporting segments include: Deliveries, Mobility, Financial Services, and Others. We have provided certain unaudited historical financial data that is on a basis consistent with our revised segment structure in the section headed "Segment Reporting Changes" below. These reporting changes only affect segment allocation of our financial results and do not revise or restate our previously reported consolidated financial statements. Group First Quarter 2024 Key Operational and Financial Highlights1 ($ in millions,unless otherwise stated) Q1 2024 Q1 2023 YoY %Change YoY %Change   (unaudited) (unaudited)   (constant currency4) Operating metrics:         On-Demand GMV2 4,242 3,600 18% 21% Group MTUs (millions of users) 38.5 33.3 16%   On-Demand MTUs (millions of users) 34.4 28.9 19%   On-Demand GMV per MTU ($) 123 125 (1)% 2% Partner incentives 177 169 4%   Consumer incentives 239 222 8%   Loan portfolio3 363 196 86%             Financial measures:         Revenue 653 525 24% 29% Operating loss (75) (204) 63%   Loss for the period (115) (250) 54%   Total Segment Adjusted EBITDA 153 35 332%   Adjusted EBITDA 62 (67) NM   Net cash used in operating activities (Operating Cash Flow) (11) (158) 93%   Adjusted Free Cash Flow (98) (213) 53%             Revenue grew 24% year-over-year ("YoY") to $653 million in the first quarter of 2024, or 29% on a constant currency basis4, driven by revenue growth across all segments amid a reduction in On-Demand incentives as a percentage of On-Demand GMV. On-Demand GMV grew 18% YoY, or 21% YoY on a constant currency basis, supported by strong underlying demand growth across Deliveries and Mobility, with On-Demand MTUs growing by 19% YoY, despite seasonal headwinds as a result of the Chinese New Year festivities and the Ramadan fasting period in the first quarter. Total incentives were $416 million in the first quarter of 2024, with incentives primarily attributable to the On-Demand segments. On-Demand incentives as a proportion of On-Demand GMV reduced to 9.7% in the first quarter, compared to 10.7% 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 first quarter was $75 million, an improvement of $129 million YoY, attributable mainly to improvements in revenue and lower general and administrative expenses. Loss for the quarter was $115 million, an improvement of $134 million YoY, primarily due to improvements in Group Adjusted EBITDA, and reductions in net interest expenses and share-based compensation expenses. Our loss for the quarter included a $31 million foreign exchange loss, and $94 million in non-cash share-based compensation expenses. Group Adjusted EBITDA was $62 million for the quarter, an improvement of $129 million YoY compared to negative $67 million for the same period in 2023, as we continued to grow On-Demand GMV and revenue, while improving profitability on a Segment Adjusted EBITDA basis and lowering Regional corporate costs5. We also recorded sequential improvements in Group Adjusted EBITDA on a quarter-over-quarter ("QoQ") basis for nine consecutive quarters. Regional corporate costs5 for the quarter were $91 million, compared to $102 million in the same period in 2023 and $100 million in the prior quarter. We focused on driving cost efficiencies across our organization, with staff costs within regional corporate costs declining 20% YoY, and cloud costs declining 15% YoY. Cash liquidity6 totaled $5.3 billion at the end of the first quarter, compared to $6.0 billion at the end of the prior quarter, with a substantial part of the cash outflow attributed to the full repayment of the outstanding principal and accrued interest of our Term Loan B of $497 million, and the repurchase of 30 million shares in the aggregate principal amount of $96.6 million pursuant to our share repurchase program. Our net cash liquidity7 was $5.0 billion at the end of the first quarter, compared to $5.2 billion at the end of the prior quarter. Net cash used in operating activities was negative $11 million in the first quarter of 2024, an improvement of $147 million YoY, driven by a reduction in loss before income tax. Correspondingly, Adjusted Free Cash Flow was negative $98 million in the first quarter of 2024, driven by the seasonality of payments made during the first quarter, and improved by $115 million YoY on improving profitability. Business Outlook Financial Measure Guidance FY 2024   Revenue $2.70 billion – $2.75 billion14% – 17% YoY(Unchanged) Adjusted EBITDA $250 million – $270 million(Previous: $180 million – $200 million)     The guidance represents our expectations as of the date of this press release, and may be subject to change. Segment Financial and Operational Highlights Deliveries ($ in millions,unless otherwise stated) Q1 2024 Q1 2023 YoY %Change YoY %Change   (unaudited) (unaudited)   (constant currency) Operating metrics:         GMV 2,695 2,381 13% 16%           Financial measures:         Revenue 350 294 19% 24% Segment Adjusted EBITDA 42 (19) NM             Deliveries revenue grew 19% YoY, or 24% YoY on a constant currency basis, to $350 million in the first quarter from $294 million in the same period in 2023. The strong growth was primarily attributed to robust GMV growth from our Food Deliveries business, as well as growing contributions from Jaya and Advertising businesses. Deliveries GMV grew 13% YoY, or 16% YoY on a constant currency basis, to $2,695 million in the first quarter of 2024, underpinned by an increase in transactions, as well as growth in Deliveries MTUs. Deliveries segment adjusted EBITDA as a percentage of GMV stood at 1.6% in the first quarter of 2024, compared to negative 0.8% in the first quarter of 2023, amid greater optimization of our incentive spend as a percentage of Deliveries GMV, lowered overhead expenses and increasing contributions from Advertising. During the first quarter, the total number of monthly active advertisers who joined our self-serve platform increased 46% YoY to 119,000 while average spend by monthly active advertisers on our self-serve platform increased 54% YoY, as we continued to deepen Advertising penetration among our merchant-partners. Adoption of Saver and Priority Deliveries continues to grow. Saver deliveries, which offers users a lower delivery charge in exchange for a longer delivery time and improved batch rates, has seen adoption growing to 26% of Deliveries transactions8 in the first quarter of 2024, from 23% in the prior quarter. Mobility ($ in millions,unless otherwise stated) Q1 2024 Q1 2023 YoY %Change YoY %Change   (unaudited) (unaudited)   (constant currency) Operating metrics:         GMV 1,547 1,219 27% 30%           Financial measures:         Revenue 247 194 27% 30% Segment Adjusted EBITDA 138 97 41%             Mobility revenues continued to grow strongly, rising 27% YoY, or 30% YoY on a constant currency basis, in the first quarter 2024. Growth was broad-based, with positive revenue growth across all of our core markets being driven by continued growth in domestic demand, as well as further growth in inbound international tourist demand. Mobility GMV increased 27% YoY, or 30% YoY on a constant currency basis to $1,547 million during the quarter, driven mainly by a 27% YoY growth in Mobility MTUs. Mobility segment adjusted EBITDA as a percentage of Mobility GMV was 8.9% in the first quarter of 2024, increasing from 8.0% in the same period last year, attributable to an increase in revenues and optimization of our overhead expenses. During the quarter, we continued to increase active driver supply while optimizing our existing driver supply to meet the strong demand growth. In the first quarter of 2024, monthly active driver supply increased by 11% YoY and 2% QoQ, while quarterly active driver retention rates remained healthy at 90%, and average driver earnings per transit hour9 increased by 9% YoY and 4% QoQ. Our efforts to improve driver supply resulted in 622 basis points reduction in the proportion of surged Mobility rides10 YoY. Underpinned by strong demand levels, Mobility fulfillment rates also improved YoY. Financial Services ($ in millions, unless otherwise stated) Q1 2024 Q1 2023 YoY % Change YoY % Change   (unaudited) (unaudited)   (constant currency) Operating metrics:         Loan portfolio 363 196 86%             Financial measures:         Revenue 55 36 53% 56% Segment Adjusted EBITDA (28) (43) 34%             Revenue for Financial Services grew 53% YoY, or 56% YoY on a constant currency basis, to $55 million in the first quarter of 2024. The YoY growth was driven by increased contributions mainly from lending across GrabFin and Digibank, and improved monetization of GrabFin's payment services. Segment adjusted EBITDA for the quarter improved by 34% YoY to negative $28 million, attributable to the increase in revenues amid growing contributions from higher margin lending activities, coupled with a further reduction in overhead expenses. We continued to streamline our cost base across GrabFin's businesses, with total operating expenses improving by 15% YoY and 14% QoQ, with the YoY improvement driven by lower staff costs, and further optimization of cost of funds and credit and compliance costs as a percentage of revenues. Total operating expenses for Digibank reduced 23% QoQ, as expenses lowered following the launch of GXBank, our Digibank in Malaysia, in November 2023, but also recorded a 48% YoY increase in total operating expenses due to the launch of GXBank. We continued to focus on lending to our ecosystem partners across GrabFin and Digibank, with total loan disbursements during the quarter growing by 64% YoY and 9% QoQ, and loan portfolio ending the quarter at $363 million from $196 million in the same period last year. As of March 31, 2024, around 80% of GXS Bank's FlexiLoan customers were also Grab users. We remained prudent in our management of credit risk in our loan portfolio, with non-performing loans (more than 90 days past due) at 2% of our loan portfolio. Deposits from customers in our Digibank business were $479 million at the end of the first quarter 2024, growing from $36 million in the same period last year and $374 million in the prior quarter. QoQ growth was mainly driven by an increased number of deposit customers for GXBank, our Digibank in Malaysia, which doubled to 262,000 customers as of March, from 131,000 customers at the end of 2023. Notably, over 90% of deposit customers of GXBank are also Grab users. Net Cost of Funds, a variable cost that supports the payment platform across our On-Demand and Financial Services segments, and offset by fees earned from payment services, was stable YoY and QoQ at 0.7% of total payments volume11 in the first quarter of 2024. Others ($ in millions,unless otherwise stated) Q1 2024 Q1 2023 YoY %Change YoY %Change   (unaudited) (unaudited)   (constant currency) Financial measures:         Revenue 1 1 53% 53% Segment Adjusted EBITDA 1 (*) NM   * Amount less than $1 million Revenue for Others grew 53% YoY, to $1 million in the first quarter of 2024, with segment adjusted EBITDA at $1 million in the same period. About Grab Grab is a leading 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 – we 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. We use our website as a means of disclosing material non-public information. Such disclosures will be included on our website in the "Investor Relations'' section or at investors.grab.com. Accordingly, investors should monitor such sections of our website, in addition to following our press releases, SEC filings and public conference calls and webcasts. Information contained on, or that can be accessed through, our website does not constitute a part of this document and is not incorporated by reference herein. 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 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, 2023, 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 ended March 31, 2024 and 2023 included in this document and the investor webcast is based on financial data derived from Grab's management accounts that have not been reviewed or audited. Certain amounts and percentages that appear in this document may not sum due to rounding. Non-IFRS Financial Measures This document and the investor webcast include references to non-IFRS financial measures, which include: Adjusted EBITDA, Segment Adjusted EBITDA, Segment Adjusted EBITDA margin, Total Segment Adjusted EBITDA, Adjusted EBITDA margin and Adjusted Free Cash Flow. Grab uses Adjusted EBITDA, Segment Adjusted EBITDA, Segment Adjusted EBITDA margin, Total Segment Adjusted EBITDA, and Adjusted EBITDA margin for financial and operational decision-making and as a means to evaluate period-to-period ...