Grab (GRAB) Q4 2023 earnings summary

Executive summary

• Q4 revenue rose 30% YoY to $653M; net income was $11M versus a $391M loss, and Adjusted EBITDA improved $146M YoY to $35M.

• FY2023 revenue increased 65% to $2.359B; net loss narrowed to $485M from $1.740B, while Adjusted EBITDA improved to a $22M loss from a $793M loss.

• Q4 On-Demand GMV grew 18% YoY; FY loan disbursements rose 57% to $1.497B.

Financial highlights

• Q4 GMV was $5.441B (+9% YoY), On-Demand GMV was $4.122B (+18%), and revenue was $653M (+30%).

• Q4 Total Segment Adjusted EBITDA was $228M (+104% YoY); FY Total Segment Adjusted EBITDA was $771M versus $65M.

• FY operating cash flow was $86M versus cash used of $798M; Adjusted Free Cash Flow improved to negative $234M from negative $825M.

• Full-year revenue growth would have been 40% excluding the delivery business-model change; reported growth was 65%.

Outlook and guidance

• FY2024 revenue guidance is $2.70B–$2.75B, representing 14%–17% YoY growth; Adjusted EBITDA guidance is $180M–$200M.

• 2024 priorities include affordable, high-value offerings, Financial Services growth, and continued improvement in Adjusted EBITDA and Adjusted Free Cash Flow.

• Medium-term Deliveries Segment Adjusted EBITDA margin has 100–200 bps of potential upside.