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.

• Group Adjusted EBITDA reached a record $90 million, up 224% year-over-year, marking the 11th consecutive quarter of improvement.

• Achieved positive quarterly profit of $15 million, reversing a $99 million loss in Q3 2023 and improving $114 million year-over-year.

• Monthly Transacting Users grew 16% year-over-year to 42 million, with six consecutive quarters of growth.

• Operating cash flow reached $338 million, and Adjusted Free Cash Flow was $138 million for the quarter, with net cash liquidity at $5.8 billion.

Financial highlights

• Deliveries GMV grew 16% year-over-year in constant currency to $2.97 billion, with segment margin rising to 1.8%.

• Mobility GMV increased 20% year-over-year to $1.69 billion, with segment margin at 8.8% and high-value rides driving growth.

• Financial Services revenue rose 34% to $64 million, loan portfolio up 81% to $498 million, and segment Adjusted EBITDA loss narrowed to $(26) million.

• Advertising revenue rose to $185 million, now 1.6% of deliveries GMV.

• Total incentives were $462 million, with On-Demand incentives as a proportion of GMV declining to 9.8% from 10.1% sequentially.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $2.76–$2.78 billion (17–18% YoY growth), and Group Adjusted EBITDA guidance increased to $308–$313 million.

• Positive Adjusted Free Cash Flow expected for the full year.

• Sequential On-Demand GMV growth expected in Q4, with strong setup for 2025.

• Southeast Asia digital economy projected to grow at double-digit CAGR over the next five years, with strong inbound tourism and under-penetration supporting optimism.