Grab Holdings achieved its first positive group adjusted ebitda for the 3QFY2023 ended Sept 30, narrowing its losses to US$99 million ($134.5 million), a 71% improvement over its losses of US$342 million for the corresponding period last year.
The loss for the quarter was primarily due to the improvement in group adjusted ebitda and a reduction in net interest expenses, fair value losses on investments, and share-based compensation expenses.
Grab’s loss for the quarter included $70 million in non-cash share-based compensation expenses.
The company’s group adjusted ebitda turned positive for the first time at $29 million in 3QFY2023, an improvement of $190 million compared to negative $161 million for the same period in FY2022.
Grab attributes the improvement to its growing gross merchandise value (GMV) and revenue, as well as improving profitability on a segment adjusted ebitda basis and lowering regional corporate costs.
As such, the company has revised its group adjusted ebitda guidance range to a loss of US$20 million to US$25 million for its FY2023. It had previously guided for a loss of US$30 million to US$40 million for the full-year period.
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With these results, Grab has recorded sequential improvements in group adjusted ebitda on a quarter-over-quarter basis for seven consecutive quarters.
The company’s 3QFY2023 revenues grew 61% y-o-y to US$615 million thanks to growth across all its segments, continued incentive optimisation and a change in business model for certain delivery offerings in one of its markets.
Grab’s total GMV grew 5% y-o-y during the quarter, or 6% y-o-y on a constant currency basis, attributed to the growth in mobility and deliveries GMV as well as its monthly transacting users (MTUs) increasing by 7% y-o-y.
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The company notes that its 3QFY2023 on-demand GMV grew 14% y-o-y and 3% q-o-q.
Grab’s net cash liquidity totaled US$5.2 billion as at Sept 30, compared to US$4.9 billion as at end 2QFY2023 ended June 30.
“We achieved our first positive Group Adjusted EBITDA this quarter as we reached another all-time high in Group MTUs and saw increased earnings for our driver-partners,” says CEO Anthony Tan.
“While this is an important milestone for Grab, it is just one of many steps in our journey as we continue to drive growth in a sustainable and profitable manner. Our progress forward remains anchored on improving our marketplace efficiency, building better and more affordable services for our users, and empowering the millions of everyday entrepreneurs on our platform to thrive,” he adds.
As at 8.10pm (SGT), Grab shares were trading 2 US cents or 0.63% up at US$3.19 on the NASDAQ.
