Grab (GRAB) Q2 2024 earnings summary

Executive summary

• Revenue grew 17% year-over-year to $664 million, with On-Demand GMV up 13% to $4.4 billion and record 41 million monthly transacting users in Q2 2024; on-demand transactions increased 22% year-over-year.

• Achieved tenth consecutive quarter of group-adjusted EBITDA improvement and second quarter of positive adjusted free cash flow, with Adjusted EBITDA at $64 million.

• Rolled out new affordable and high-value offerings, expanded digital banking operations, and leveraged AI and tech initiatives for operational efficiency and improved transaction frequency.

• Maintained category leadership in a competitive Southeast Asian market, supported by robust demand and tourism recovery.

Financial highlights

• Revenue: $664 million (+17% YoY, +23% constant currency); On-Demand GMV: $4.4 billion (+13% YoY, +18% constant currency).

• Segment-adjusted EBITDA reached $148 million, up 84% year-on-year; group adjusted EBITDA was $64 million, improving by $81 million.

• Operating loss improved by $121 million to $(56) million; IFRS net loss improved by $79 million to $(68) million.

• Positive net cash from operating activities of $272 million; adjusted free cash flow was $36 million for the quarter; net cash liquidity at $5.3 billion.

• Total incentives: $452 million, with On-Demand incentives as a proportion of GMV declining to 10.1% from 10.5% YoY.

Outlook and guidance

• Maintaining full-year 2024 revenue guidance of $2.7–$2.75 billion and adjusted EBITDA guidance of $250–$270 million, expecting to land at the upper end.

• Forecasts positive adjusted free cash flow for full year 2024.

• Long-term segment-adjusted EBITDA margin targets: +9% for Mobility, +4% for Deliveries, and banks to break even by end of 2026.

• Revenue outlook assumes a 3.5 percentage point currency headwind.

• Sequential growth expected in on-demand GMV and group-adjusted EBITDA in the second half of 2024.