• Published on 12 November 2024
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Grab posts $15M profit, 17% revenue growth in Q3 2024

Grab Holdings Limited reported a $15 million profit in the third quarter of 2024, with 17% revenue growth to $716 million, accelerated On-Demand GMV growth, and record user numbers.

"Third quarter 2024 was a strong quarter for us as investments we made across the business drove an acceleration of our On-Demand GMV growth. We are serving more users than ever before, with 42 million monthly transacting users on our platform,” said Anthony Tan, group CEO and co-founder of Grab. "We remain bullish on the long-term growth outlook of Southeast Asia, and are firing on all cylinders to capture the strong user demand trends, improve income opportunities for our ecosystem partners, and drive tech-led innovations to enhance the efficiency of our marketplace.”

“We delivered our 11th consecutive quarter of adjusted EBITDA improvement, our second positive profit for the quarter, and the highest quarterly adjusted free cash flow to date for the business,” said Peter Oey, chief financial officer of Grab. “With the strong momentum we are seeing across the business heading into the end of the year, we expect to deliver sequential On-Demand GMV growth in the fourth quarter and are raising our full-year 2024 group revenue and group adjusted EBITDA outlook.”

● Revenue grew 17% year-over-year (YoY) to $716 million in the third quarter of 2024, or 20% on a constant currency basis, driven by revenue growth across all segments.
● On-Demand GMV grew 15% YoY, or 18% YoY on a constant currency basis, underpinned by 19% YoY growth in On-Demand MTUs and 22% increase in On-Demand transactions.
● Total incentives were $462 million in the third quarter of 2024, while On-Demand incentives as a proportion of On-Demand GMV declined on a quarter-over-quarter (QoQ) basis to 9.8% versus 10.1% in the second quarter of 2024 as we optimised incentive spend that was used to support product launches.
● Operating loss in the third quarter was $38 million, representing an improvement of $55 million YoY, primarily attributable to increases in revenue.
● Profit for the quarter was $15 million, an improvement of $114 million YoY, primarily due to improvements in group adjusted EBITDA, an increase in net finance income, and lower share-based compensation expenses. This was partially offset by an increase in other expenses and income tax expenses. Share-based compensation expenses for the quarter were $53 million.
● Group adjusted EBITDA was $90 million for the quarter, an improvement of $62 million YoY compared to $28 million in the prior year period, attributed to On-Demand GMV and revenue growth, improving profitability on a segment adjusted EBITDA basis, and lower regional corporate costs.
● Regional corporate costs for the quarter were $88 million, compared to $97 million in the same period in 2023. We remain focused on driving cost efficiencies across our organisation, with staff costs within regional corporate costs declining 14% YoY.
● Cash liquidity totaled $6.1 billion at the end of the third quarter, compared to $5.6 billion at the end of the prior quarter, with a substantial portion of the cash inflow attributed to the growth in deposits from customers in the banking business, which increased to over $1 billion from $730 million from the prior quarter. Our net cash liquidity was $5.8 billion at the end of the third quarter, compared to $5.3 billion at the end of the prior quarter.
● During the third quarter, pursuant to our $500 million share repurchase programme, we repurchased an additional 17.7 million shares with an aggregate principal amount of $58.2 million. Cumulatively, we have repurchased and retired 57 million shares with an aggregate principal amount of $189 million as of 30 September 2024.
● Net cash from operating activities was $338 million in the third quarter of 2024, an improvement of $17 million YoY, mainly driven by an increase in deposits from customers in the banking business and an improvement in profit before income tax. Adjusted free cash flow was positive at $138 million in the third quarter of 2024, improving by $144 million YoY. On a trailing 12-month basis, adjusted free cash flow was $76 million, improving by $348 million YoY.

Re-disseminated by The Asian Banker