Grab (GRAB) Q3 2024 earnings summary

Executive summary

• Revenue grew 17% year-over-year to $716 million, with constant currency growth at 20% and On-Demand GMV up 15% to $4.7 billion; Monthly Transacting Users rose 16% to 42 million, marking six consecutive quarters of growth.

• Achieved record group-adjusted EBITDA of $90 million, up 224% year-over-year, and delivered the eleventh consecutive quarter of improvement; profit for the period was $15 million, reversing a $99 million loss in Q3 2023.

• Operating cash flow reached $338 million, and Adjusted Free Cash Flow was $138 million for the quarter, with trailing 12-month Adjusted Free Cash Flow at $76 million.

• Strong GMV acceleration in on-demand segments, especially deliveries (16% year-over-year in constant currency) and mobility (30% year-over-year), with high-value rides and new services driving growth.

• Continued focus on profitable growth, sustainable free cash flow, and shareholder returns.

Financial highlights

• Adjusted EBITDA hit an all-time high of $90 million, up $62 million year-over-year; operating loss narrowed to $38 million from $93 million.

• Deliveries segment margin improved to 1.8%, up from 1.5% last quarter and 1.1% a year ago; Mobility margin at 8.8%.

• Free cash flow generated in Q3 was $138 million; trailing 12 months at $76 million.

• Advertising revenue rose to $185 million, now 1.6% of deliveries GMV, up from 1.1% a year ago.

• Net cash from operating activities was $338 million, and net cash liquidity stood at $5.8 billion as of September 30, 2024.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $2.76–$2.78 billion (17–18% YoY growth), up from previous $2.70–$2.75 billion.

• Group Adjusted EBITDA guidance increased to $308–$313 million, up from $250–$270 million; positive Adjusted Free Cash Flow expected for the full year.

• Expect continued sequential growth in on-demand segments into Q4 and strong setup for 2025.

• Southeast Asia digital economy expected to grow at double-digit CAGR through 2030, supporting long-term optimism.