Grab (GRAB) Q2 2024 earnings summary

Executive summary

• Achieved record highs in on-demand GMV, group monthly transacting users (up to 41 million), and group revenues in Q2 2024, with on-demand transactions up 22% year-over-year.

• Revenue grew 17% year-over-year to $664 million, with group-adjusted EBITDA reaching $64 million and adjusted free cash flow positive at $36 million.

• Delivered tenth consecutive quarter of group-adjusted EBITDA improvement and second quarter of positive adjusted free cash flow.

• Continued investment in new products, technology, and AI-driven initiatives, including digital banking expansion.

• Maintained category leadership in mobility and deliveries across Southeast Asia, leveraging scale and technology.

Financial highlights

• Q2 2024 revenue: $664 million, up 17% year-over-year (23% constant currency); on-demand GMV: $4.4 billion, up 13% (18% constant currency).

• Segment-adjusted EBITDA reached $148 million, up 84% year-over-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.

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

• Total incentives were $452 million, with on-demand incentives as a proportion of GMV declining to 10.1% from 10.5% year-over-year.

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 reach the upper end.

• Committed to positive adjusted free cash flow for full-year 2024.

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

• Outlook assumes a 3.5 percentage point currency headwind to total year-over-year growth.

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