Earnings call transcript Q1 2023

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Operator

Ladies and gentlemen, thank you for joining us today. My name is Emily, and I'll be your conference operator for this session. Welcome to Grab's First Quarter, 2023 Earnings Results Call. [Operator Instructions].

I will now turn it over to Vivian Tong to start the call.

Vivian Tong

welcome first and call. XXXX everyone, day, to quarter Grab's earnings Good Vivian U.S. Head I'm of Tong, at and Operating Relations Executive Oey, Investor Grab, Financial Officer; Tan, are Chief Alex Chief Anthony Hungate, Chief Officer. Officer; Peter joining and me today

our our today, followed business financial first will operational quarter discuss Alex will Peter strategic highlights, and XXXX During the and will share key call provide Anthony achievements, by details results. of

respond will we Peter, the the the to questions remarks, Anthony, will Following where and Alex call open to Q&A. prepared

As and for which contains company's a are Form the statements future other in due and Actual forward-looking business our a filings our year and the described risks, including materially statements differ to today. expectations and risks on regulatory, number are today's XX-F These events reminder, discussion of could December with about and as of uncertainties other and XX, the financial ended based results SEC. XXXX, beliefs performance. business, macroeconomic, industry,

We in with do together discussion reconciliation to material. measures, measures considered to be measures. forward-looking not IFRS substitute which should financial earnings included non-IFRS IFRS any obligation also for non-IFRS contains today is A undertake than financial this a any rather quarter's of statements. The financial update

quarter For first website. earnings XXXX please disclosures IR financial press be more information which on for on our our detailed and review, performance, refer release presentation to additional recent business a and found supplemental can

will remarks. I that, call to opening with And his the to over Anthony turn deliver

Anthony Tan

with reduced performance adjusted than with to sustainable and you more EBITDA with quarter. results off the a XX%. focus XXXX joining doubling losses solid drive We Consistent of today. year-on-year for revenues was being kicked Grab's Thank set by first growth, strong for us our

leadership in consecutive quarters category accelerating our and strategy, deliveries. executing path disciplined belt, improvements five remain extending to our mobility our of across and profitability, our With we food under EBITDA adjusted

the year, growth back that trends of expect we ahead of As we are rest off key we towards the seeing. continued the look four

platform services are a remain building returning Asia. Southeast up domestically. China's tourism about us that rolled further and we're trends. the with Firstly, segment high-value and positive encouraging and demand to of segment, greater Asia Southeast capture especially a demand trajectory, We are secondly, user a and with more a of seeing traveler at on affordable continues a product share travelers to Mobility growing users on on serve innovative products of and in series greater picking will allow healthy partnerships our sustainably to pace. Monthly We've transacting out market enhancements the recovery reopening. optimistic focused

seasonal of Thirdly, our we in deliveries quarter, profitability the the despite strengthened first segment. largest headwinds impacting

rest options, focus well offering affordable the the on the from positions value best of choice, and range for program us subscriptions GrabUnlimited Our year. our of

Finally, our remains of seeing Demand this markets. for credit products manner. We're ecosystem several within very including the a risk-prudent lending rollout various And done Bank in greater healthy. GXS Services in all being is Singapore. Financial activity with across

on Maps role how AI, enables that to our to thoughts the adopters opportunities our In we're played our is build income us years, in effective more for Maps. to boost advantage. And example early data partners. even key of they're robust. today, An competitive of were has help our science share use by Heat I driver and also around our Heat of highly and using platform. demonstrated our always create want a more my set AI data unique We these tools high-frequency which early region

piloting models of surge our to also earnings. has increase on-demand large are more Combined for to using driver helped several with are drive We're other used AI reduce This to higher and and cost efficient tools, savings. initiatives these also Maps create language fulfillment pricing, Heat trips, translate services. content better

are We across East and important cost to will unlock increasingly strength as for enable We productivity. understanding a play generative confident We're deliver Asian that region. the us growth platform it opportunities boost our leverage us platform. more our AI an greater further and landscape to role efficiencies drive anticipate that to better the excited to should user across experiences South

and We on-demand execute Southeast financial most services. high access discipline bar platform will commerce to continue and that and cost focus become to enables ourselves efficient largest set for the Asia's with local and mobility to

over to hand cover in our now more quarter to detail. highlights Alex operational first I'll

Alex Hungate

displayed a by Demand Thank the you, remains revenue Mobility mobility region, in and by with the and X% normalization fueled well the with Anthony. of segment, GMV travelers commutes I'll dive deeper Mobility. international business growth highlights markets. strong and year-on-year starting return across quarter-on-quarter, operational year-on-year to first our in quarter. MTUs quarter, as local strong into the as of first XX% further increasing

to room were Notably, as of levels. by rides we year-on-year airport XX% X% at only recover quarter-on-quarter and increased still with pre-COVID further ample XXX%

translations, more those We've tech venues apps the other region. We've travel Booking.com apps to leading the when Chinese, guides product consumer versions than X,XXX Asia. and Kakao partnered such demand make Japanese, services to and AliPay, app, rolled out image-based Ctrip, grab of to with including available tourists Southeast and as across menu WeChat, through enter Korean up pick support and enhancements international points for

rebuild service our and rides time of to to pricing continued base lower a supply reduced and quarter-on-quarter. passenger driver including also efforts quality, ongoing wait with surge have results proportion Our positive average yield optimize in

online active Driver improved up by metrics year-on-year are XX%. per active earnings and supply parallel. hour Active transit have is and XX%, in also driver up driver total driver both hours

quarter of initiatives quarter. ride-hailing in prior category result the over XXXX, region first the these we leadership across of in the extended a As our

local see Over the this rest of in expect demand increase to commuters. we year, and a from travelers continued

same will every mobility region, the share. offering time, deeper into across At grab the including by we options affordable market push relaunching

Now let's review our deliveries business.

onset of due period where pandemic gathering, when first began lifted, towards restrictions to for quarter. more some seasonal Year Chinese impacts. second expected, was the also softness began the since of demand the saw the replacing quarter quarter during it in year were in Ramadan social some The a This first compared the food the lot last which the As end we fasting of as the means in-person GMV first to delivery the lockdowns. New

past Moving expecting these to key pick up. seasonal headwinds, we're for several deliveries are There this. GMV drivers

our our users Firstly, focus that we platform. believe more improving should attract affordability on platform to

more have delivery we time. markets, slightly fee for as features exchange Saver improve example, longer enables users a for For delivery while which a lower out offering in across batching to us rolled such option

Overall, GrabUnlimited spend users accounted first and deliveries of healthy. than a to quarter, GrabUnlimited. for GrabUnlimited in the stickiness food continue more over GMV. we continued Engagement Secondly, times drive on nonsubscribers users also user up the X.X to deliveries be engagement in first with continuing to with quarter quarter. levels

productivity continue and year-on-year platform also driver managed time year-on-year. our to hour trips serve. on per Average wait partner batching driver this We are regard, on to also cost important we basis. have a XX% transit reduced reducing focused Improving has is in efficiency at to increase and merchants

platform able our this by a strengthen reach X.X% We continue points markets segment-adjusted have margins. gains of efficiency were steep percent spend able in Despite greater in reduction all-time we'll year-on-year an category going advantages to Southeast this food our is we we over quarter. of basis because optimize harness XXX scale, position all forward. to Asia, of to across as scale This this incentives, deliveries high lowered to to and EBITDA are from our the GMV incentive delivery gain as largest

on Financial Services. Next,

disbursements where can revenue that strong manage driven we business. growth to Loan ecosystem, costs to incentives posted well. lend quarter, executed from XX% feel our During as contributions we the credit grew lower by we the year-on-year our and on during quarter higher we our lending strategy consumer

continue Consistent well quarter. with controlled in costs to the this, credit be

adjusted financial also We services. improved our for EBITDA

by further particular, operating Fin's in XX% that on year-on-year prior a recorded In on fins achieved quarter-on-quarter is and Grab XX% This quarter. basis expenses reduction basis. we building in a in on we expenses quarter-on-quarter the a XX% Grab reduction the operating

flexible provides are Bank our we the closely product, working them options financial customers by increase to with the at cap. lending to GXS this so tailored in set the bank's deposit first the Central needs. loan below Singapore right are with product Flexi cap launched repayment GXS regulator initial which Singapore Deposits their

working remain on closely we Malaysian confirm and to year. our are track with also the Central We Indonesian banks that can I in Bank Digi And later launch this regulators. countries both

Lastly,

the the we enterprise we and on the platform have within ads self-service platform large total grow move segment, business. our XX% our joining advertisers advertising this as quarter, capitalize of build of to our monetization more opportunity. we out self-service In year-on-year active first reach improve the to seen number to continue merchants to

the to continue profitability we rest driving path As term. long and we on growth sustainable XXXX, to look accelerating the focused for our to of stay

while During margins drive the gains. our efficiency greater quarters, harness ability to our quarter, improving business to to improve upcoming demonstrated we the we continue pursue adjusted In we to efficiency scale further the leadership. EBITDA and category as opportunities will scale our strengthening advantage

Peter review the first I will now to financial results. call the turn over to quarter

Peter Oey

to the We quarter, the currency XXX% or remaining delivered of this in quarter pace constant on year-on-year fourth reach million. EBITDA adjusted the year rest Thanks, first on a towards quarter Alex. and grew XXXX. and healthy a setting $XXX in track quarter-on-quarter breakeven X% Revenues of group results a the achieving good basis set for of by XXX%

The of strong revenue growth all segments our business. from came

$XXX the domestic For of mobility, and X% revenues quarter-on-quarter international underpinned grew continued by ride-hailing million demand. growth XX% year-on-year and to

grew incentive $XXX saw from and X% our revenues by further higher Jaya deliveries, spend as XXX% to quarter-on-quarter and we Grocer. For optimize year-on-year million contributions

prior As markets, the in the which a our business year. not delivery quarter change one last of was in is certain there reflected in offerings in of reminder, first in model a quarter

for improvement million quarter million grew period same and XXX% year-on-year quarter. to continued of Services attributed year lending growth from optimization from greater ecosystem the million in previous the XX% incentives. was revenue last in $XX grew to in and The $XX the Financial $XX

in improved For initiatives, business. $XX the our enterprise as year-on-year quarter reach we profitable revenues million first focus transactions driving within to and new advertising XX% on

or Group pre-COVID we $X continues year-on-year end increasing to Mobility the GMV. in segment growth of billion quarter. X% Turning a on as of XXXX. On level, currency XX% towards currency strongly, grow or on GMV track X% a constant to to by the levels XX% reach basis year-on-year a We over constant basis recorded first

declined quarter. GMV against period a mentioned, year-on-year first the during are comparing Deliveries and commenced billion fasting deliveries we or we where COVID the Ramadan base, XXXX in demand of and the second supported and as basis, by was quarter constant Alex on restrictions, X% only X% are $X.X currency was

as pick seasonal further GrabUnlimited we improve we moved to as growth XXXX quarter to We the options. sequential sequentially expect half deliveries drive the up growth affordable past in more of and the through second provide engagement GMV second and in headwinds

Moving loss quarter-on-quarter. improvement segment reported basis $XX in the Segment segment a improved first adjusted prior $XXX from million margins and points year-on-year period. the We points of of on million XXX a year in to EBITDA. total adjusted basis substantial XX EBITDA quarter,

key total of a declined of improvement incentives from in reduction GMV, driver the of prior this the which to was as quarter. XX.X% A X.X% this percentage period

adjusted was quarter In segment an adjusted $XX segment margins optimization. XXX basis GMV. expansion an improvement of reached EBITDA margins high deliveries, points all-time was quarter-on-quarter. in and year-on-year by first incentives EBITDA points of XX This deliveries basis further is million, X.X% of driven The while

achieving confidence markets X% of as segment us In for core segment. steady-state have X% margin our exceeded addition, now target towards of the plus giving our EBITDA adjusted we track several margins,

adjusted XX% quarter. grew $XXX year-on-year the in million first In to EBITDA Mobility, segment

reinvested but more quarter margins enhance use quarter-on-quarter platform efficiency period, prior in segment incremental margins cases. improving XX.X% First X.X% it and to XX.X%, expand we into adjusted declining as from was from the EBITDA affordable

at XX.X%, are steady-state line XX%. our margin our the More first target in in importantly, with of quarter margins

negative segment a Services, to improvement. million, representing Financial For XX% year-on-year improved $XX adjusted EBITDA

with to As cost quarter margins of GrabPay XX% first basis continue reduced to a our X.X% XX base points businesses expenses year-on-year operating and percentage Financial TPV, improved quarter-on-quarter. across streamline Services by XX% negative for year-on-year as we

achieving $XX XXXX, year. EBITDA adjusted also Group EBITDA group year-on-year group of year-on-year. $XXX remain in adjusted million, million. losses quarter in our adjusted For improvement of confident quarter We EBITDA breakeven this the of basis XXX the first representing towards were a trajectory fourth points improved margins

million were year as compared improved quarter, in prior the regional basis copper compared $XXX $XXX $XXX sequentially our Overall segments have For costs two across million on to prior million quarter-on-quarter core quarter. in period headcount a as now quarters. and the and functions over corporate last the the to fallen first

driving in very efficiencies cost on be costs corporate to regional We continue will reducing focused across and our organization.

business early productivity unlock mentioned, have we're potential which efficiencies in also our the of believe reduce time. AI we Anthony days costs in and further to As the exploring tools, over

to of a quarter same on first group in from adjusted last representing IFRS improvement a $XXX basis. the million, reported Moving XX% EBITDA improving million the to of year loss. due loss We $XXX period profitability a loss on

First share-based million which below quarter from of $XXX Grab's compensation includes of each IFRS million from loss noncash mark-to-market are of this, revaluation EBITDA equity $XXX line. the million adjusted was $XXX $XX investments, million Of and quarter. expenses

Turning to balance sheet. our

during Our prepayment liquidity cash the liquidity quarter, first $X.X position end cash of additional the outflow quarter first gross liquidity. the Term and ended a Loan strong. our of Cash B million remain cash the prior declined continues substantial to $X.X attributed $XXX We of to of billion portion billion the the with quarter. from with at

billion liquidity in quarter. of the net was $X the to quarter the $X.X Our billion prior first end compared at cash as

to profitability continues As path growth. reaching Mobility driving XXXX, be remain sustainable strong we another to April. March of our we GMV in in With look rest on the focused and post-COVID demand while high to

a levels driving our by XX%, we maintaining growth GMV continue reach adjusted X% EBITDA this from margins adjusted on fourth the basis. Deliveries, quarter maintain segment expectations will to towards Mobility of of margins continue anticipate growth We quarter-on-quarter while balance segment while sequential steady-state to We pre-covered year. state of to plus. profitability EBITDA and in steady our

the period, following and been has confidence in Overall, part Deliveries transactions May. Deliveries of the into continue end fasting this recovering the quarter April, into the the Notably, Ramadan this of that strongly early rebound year. sustained month of the gives back of us will have second

the all towards between given We $XXX us to fourth are adjusted million our target the a the also confidence EBITDA With quarter, quarter $XXX group and of on to negative revise strongly EBITDA adjusted improvement million. adjusted segments EBITDA this achieving our an guidance year. previous this of is loss improving performing breakeven well This our million. up has first $XXX to in full-year and from EBITDA in group group tracking adjusted million $XXX of

inspire hard us on thank the like Alex our quarters. conclusion, deep driver deliver work in gives a partners possible. Grabbers for our also We who in quarter the would product confidence merchant the in In deliver like commitments making us these performance again, XXXX first and express Anthony, Once results our to coming to appreciation in all to to best and continue our for ability over markets. to quality would of our their I

very Thank the you call open much time, now we and up questions. to for will your

Operator

call. Ladies will and portion of the we start the question-and-answer now gentlemen,

question-and-answer us Alex the Executive Officer. Joining Operating and for Tan, Tan, Officer; Financial Chief be Chief session [Operator Anthony Officer; Chief Hungate, Instructions]. Anthony will

Our Goldman question go first Pang comes with today ahead. Vit from Sachs. Please

open. Your line is

Pang Vittayaamnuaykoon

well. please. Two on set as Aaron of arrival And baby a on from congratulations questions number. evening, and Good good the Anthony, your congratulations of me,

improved in from in I that share think your Indonesia. quarter, noticed trends has the I for on-demand market especially considerably market Firstly,

Your peers. are May and here? with you us top than what That's Can strong one. trends on you and more question color were line to your done have in provide up differently stronger you share the number peers able than Deliveries. growth Mobility from Also, you seeing April holding

if does understand we in an what prior see quarter what imply versus segmental your expect trend EBITDA to across you and on this? your you high full-year assume to EBITDA. we allows to you walk breakeven in for do us the Mobility guidance quarter. EBITDA management that more to have basically guidance. loss achieve our quarter, end the upgraded by fourth EBITDA had use two, guidance quarter adjusted and third and your quarterly How also Deliveries. guidance EBITDA plan Can number burn on Question for changed reach And even quarter-on-quarter of through Can you second improvement

be So, helpful. here a would bridge of little the bit

you a well. expect do costs, here particularly improvement million Q-on-Q to we quarter is improvement corporate after your with as lastly, what and trend And how in $X promotion that saw

Anthony Tan

to with. Thanks There's for deal question, lot Pang. a your

will Peter and start continue. I'll So,

we our across driver Now spent also the significant into rates all fulfillment countries. during quarter, improved amount effort improving And supply. of investing our a

the As XX% while retention rates of year-on-year, we number platform drivers healthy. remained saw on increase result, actually active a our have

for Overall trips partners. providing transit income driver also improved, for more our hour has

As for, in results we Pang, our continue uplift. to services to offer across more also news reduce demand rights. strong affordable of probably good markets, the managed proportion we've know Mobility I that surged

result, MTU a see increased we that As for quarter the year-on-year. in our Mobility XX% first

capture wider expanded also a products market. we've Now of range the to our

supermarket, loyalty program lower that engagement, also user a drives our at For for cost. Jaya stickiness more and Malaysian example, more GrabUnlimited up

to share some Just quick numbers.

users users. And GrabUnlimited X.X more times spend delivery quarter now GrabUnlimited more actually Our of GMV. comprises than than non-Unlimited

affordability Grab Now we've that as the successful has about for Deliveries options, share such with our thing, mobility, across launched second that customers. saver or price-sensitive talking markets been quite for

third, then GrabCar will actually of the a service you across hope Executive, and which we've executives many high-quality offerings that as rolled try, business such I premium out And region. provides to

remember about asked growth. seeing. I a we're also we are growth, question the actually On encouraged you rebound Now by

early well growth out Ramadan of expecting rebound coming into us weeks ahead of as with Mobility, has of the a period, summer very increase that seen On May. in business we're busy continued the in tourism Now as demand. fasting further even

demand continued I year. now in weeks bounce seeing On as of early the in of May, in Philippines, And by to We're Mobility levels Deliveries, strong end also of two-wheel slated just April. this a we're to we growth. our back, our we post-Ramadan saw push. to affordability pre-COVID on maintained expectations services also GMV as And the launch part in our return

second quarter. laser, the breakeven on towards laser-focused to hosting aim Going to in we momentum half, fourth driving sustain adjusted this EBITDA the

innovate. will continue we to So,

to leverage our to our in improve to cost users and We serve the affordability reduce We'll will continue serve. our continue region. more to scale

Peter Oey

I'll I One had question. allows in us three was parts. take part Okay. you around think your to the of second changed EBITDA. see the that And what improvement

our So, original in piece. future think which about terms EBITDA, I'll final of dovetail first, I'll I'll costs do the quarters how we your address copper in that future, and about handle

consecutive also tell, saw adjusted of very as remaining And a the an quarter EBITDA the EBITDA. this see can gave first trajectory our how which is results, lot So, quarters five from that strong delivered, confidence adjusted is now to business and for improvements. you Pang, of we've us you And very year. encouraged of

very prepared all our listened that We're laser-focused Anthony and to as sure Deliveries you've our in remarks making business.

margin EBITDA plus and We're to X% to previous closer continues very calls, mentioning can committed you we tell, all-time margin. and closer, Our that grow, been in getting Deliveries X% that to we the reached and are always we've as achieve inching X.X% high. in and

segment You you also quarter work and ton financial saw and the EBITDA in bit a improvements in operating We share costs. In first number a a going meaningful of in here. into our financial our of improvement of has been services to services. terms

graph that's was and quarter-on-quarter reduction If you on the XX% our last is XX% delivered quarter, our reduction. quarter-on-quarter, our what business, business, OpEx which look at in nonbank back we of

of all that have about we how again, in us of think future So, confidence quarter we gives terms these elements XXXX. the

good terms mentioned, the in continue we're achieve and we the make our in future as of of here given the demand we're in that seeing We're traction, Now think continuing only what we'll to outperform we in to what the degree can that as guidance some Anthony And how committing out. Deliveries sure guidance. business. your we're as first I've in half And terms conservatism in of just Mobility strong seeing well do quarters We question, year. in bake some about of do

certain it's to time But make our make to time There investments again, be early. when could to sure that healthy. marketplace continues still we be

hope addresses the So that EBITDA.

the So, quarters if think how tackle I now was costs. future copper me the we regional around think, regional it of question, let do remember, about cost which I

done a can basis. two we our in cost bring more down get quarters an the traction and really And cost of did headcount terms Pang, efficient the consecutive see terms customer how structure. in I down we've work we opportunities, year-over-year to continuing can for call ton continued terms copper cost board in a with Yes, in look we shared to our quarter-on-quarter We're in improvement be coming variable good looking optimized. of our how of are in regional that's that of and across by our a now. we there's more structure Grabbers seeing at some on

And and we're quarter, to we're we're to it, away going not a chip to it's continuing each opportunities. for continue at we're stopping. So, on. that journey And look again,

target going our this to. the continue ties to which fourth the quarter So, to get which to look that we're we're to to for breakeven of opportunity, back year, committed

Operator

Citigroup. next Our Please Alicia ahead. question go from comes with Yap

Your open. is line

Alicia Yap

longer-term Hi, for a on and to congrats solid good bit my Thanks taking I results. question. little evening, have two question. medium, the Management. more

related hope First are GrabPay share would and that you to is what the milestone Can DG with management banks. to server us, achieve.

some of to in example, terms line three your using of For performance. in five years that you metrics are and important year, measure the years-time one

MTU, the rate, the the margin example, take user, improvement. For EBITDA per monetization

the So, any be could you helpful year, and comments in of provide one years? five terms or years two would color

question Mobility. Second is on

any regulatory rider's the these, segments income, up, from is ramping pressure rider's company, offset the but is on cost business welfare, operations, ways these as will risk the time event, requirements, about various encounter you. there right, the is? to to time if margin example, Grab in think safety, whole, and a for also all as operating I think Thank a mitigate what always to consumer

Alex Hungate

answer The This Alicia. questions both don't I Why Thanks, first those Digi actually? the Alex. one on banks. is

with our risk ecosystem manage to we banks, through from allows know our on Investor we're Digi you cycle. better and credit Day, believe focused supporting costs As us our which own the

bank. were stand-alone to an reason example, for expect And of than, why bank that's better we we much ecosystem. outside a So, a even than stand-alone if break one sooner

already customers reason, of course, acquisition we because grab. they're is lower of other have costs The

Investor Digibank during and for we we to Malaysia, the three for that's banks, shared even Singapore, as by break end result, Indonesia. Day, operations the all a as So aim

first I So, intend to you milestone the your across end milestone. I XXXX, reaffirm question, entire is by even with Digibank the of that's guess, a the break that can to key three-year, we operations three-year that

Malaysian will only the Indonesian this the that in and banks Given half XXXX. second launch of year,

for only because in far, we're we've operating and Singapore growth just cap been so already where the Digibanks just the below days launched cap. our limited has basically by early Still the deposit

key the measures transaction during However, with you to that measures, Promoter just are the are Net operating period tracking this we share engagement Score and around other pattern.

the In -- is the our longer not in bank our term, largest be vision to five-year market. the

our on We focused are supporting own ecosystem.

So, will we base that produce the do be because customer the acquisition returns the has that the ecosystem to size lower the proportionate believe risk attractive we GMV and better and costs. of management the can MTU

Okay.

Maybe hope idea years' of in where aim years' about the time. we we'll X I to be second some we So, where turn question time, I are that's be where helpful. now, regulation. I'll give to three and in

You're right.

the uncertainty great and we demonstrated mentioned. we across And partners millions both lead, you driver's on that over regions. opportunities in We've of regulation of the consumer country many One we gig create over can has safety, as around years economy other closely in of sources been the the worked years to every key the it in region the time, issues been key with regulators has for have the two our region. the believe, welfare that take income over

earnings partners for in earlier, year-on-year. is as driver transit the we our mentioned up the hour quarter, per So, first XX%

those local the That's the important very So and interested above for on drivers main very opportunities that that's because their that thing the economies in, focus and constituents. it's thing all. income we important regulators to the are also for their are

we addition already. provide a to benefits welfare in do that, of nonmonetary range and But

financial more upskilling through million X Grab things So, Academy. services, than now we've like driver courses, actually done partners which the for

provide And then accident insurance as well insurance none at we work-related cost.

population over been a us drivers It's leader. the believe and sustainably retention because rate our allows grow a time. retain to that So, driver and we win. we've win increases for

thing are still And then the if then greater reason question, very leader and feel density that guess we we city. not focused steady-state increase the in the other market, of X% we why start plus available to the because in Deliveries competitors, margins affordability, like for shared for do every category key can we on XX% translating those for is to the we've your category And regulation, of we have can't into using that they that that costs every through to I Mobility confident best that the the is affordability. with you match and us and density are our leadership efficiency therefore, meet

we So, to if be believe in are sum, will time. they applied costs, that of those indeed, we additional best placed overcome any over

help drive But regulatory we us are closely regulatory that any occur key continue Mobility, that Deliveries the downs for reaffirming scale steady-state might the those through occur. outperform and which that in -- for any regulators attainable ups over we as margins changes benefits, will might is X% across that of We to XX% are continue to to believe for the marketplace thing we time. despite will region the to with work have past keep the healthy greater we'll and

Operator

Piyush comes Please next Our question from go HSBC. ahead. Choudhary with

open. is line Your

Piyush Choudhary

for lot congratulations Two opportunity, a Thanks losses. the the steadily my and on questions narrowing side. from

at Firstly, million. group MTUs quarter-on-quarter have been around stable $XX

an efforts cities taken this in growth what provide us on drive MTU And to update MTU? can the to being growth? to expansion are you drive So new

level or how is come operating same fixed? how higher I'm what Services, of down on business the and of fixed Secondly, variable is room is color trying with much much you in cost us the cost, digital cost total out support Financial much understand give the to can to revenue can opportunities. for either

a So, appreciated. thoughts your there of this here segment here? is opportunity and Thank would outlook lot for you. operating So, be leverage

Anthony Tan

I much. appreciate so Thanks it.

year-on-year first $XX.X MTUs On in question the million first quarter. to grew actually on MTUs. the

on improving and the driver tourism actually we of are and Mobility seeing Now continued base back our the supply. recovery our alongside of user are growing and optimistic in services, the services on our in we demand affordability Deliveries

growth. business So supports the Mobility that also

there's largely given, XX population still a ahead, population expanding fundamentals rising is digitalizing. in growing one the yet that a with at to if Today, The the the lot that market our only is and strong sells grow also Grab still looking people and month. services, middle total rapidly sizable of large region, underpenetrated. Now one, online you and addressable core and are one every in class look potential

So, this grow. of means there's to still room for us plenty

Now across reach to growing a our have the about how approach multipronged we we think MTUs actually region. do widen

of our broader products evolving and to First, we are range users. services to appeal a

cities, it's talked into that. about like Saver, Grab and with whether whether penetrating I we're it's things it now Second, Share, just

also services, the in that took new and we're Second, actually the cities backseat during pandemic. with a penetrating

So, especially of the for this important outside is cities. capital

call So, expansion. what OTC we

The increasing third talked Alex segment within Financial to our partners. the Services product ecosystem we're about offerings that serve our is also

really about services. affordable So, lowering talk don't increasing when grow that about demand, category in It's growing a we for not bottom just especially we line. prices, about we demand but think for also increasing the

is to how that. do that? So we Innovation absolutely key do do

to cost to our can we using the pass actually and savings it technology to that lower the innovate serve that so we customer. cost So, take on

this our about market pole large have growth we given base. to position to user approach their plenty And and the the capture of continues execute ecosystem total the I talked Grab in we're scale. will power So, addressable grow opportunities of just to multipronged

Alex Hungate

the second the Anthony. question why Piyush, on don't services. financial Thanks, I take

that over down push some numbers evidence payments recap while is strategy volume. Just there's the to been able quarters of last to And the the in achieve couple fixed that. costs the the we've growing actually, to business for

that down reduction the So, this on cost then XX% XX% came the for Grab prior and quarter. an quarter, built in in quarter-on-quarter,

down we that those volumes fixed while financial the up. are driving going see transaction can you costs So, are even

look across about if about for banks and that XX% and increase disbursements costs the together, supporting, quarter. in GrabFin at you are year-on-year in the this fixed the loan we've this XX% of Net-net, of time had variable example, XX%

of down. Now the is costs proportion going fixed actually

taken of quarter-on-quarter reductions I of that cost So, that those a piece. lot were quoted just out fixed

part getting we key and a of the So, strategy. more operating are that's leverage,

on Maybe, Peter, profitability to you want comment profile. the

Peter Oey

Yes.

made we as segment about think some from in good terms -- Financial strides So you it tell, quarter Piyush, is of the the to first profitability. Services can our of way

up a one to that launches got in -- launch couple we costs be Indonesia. year, as those for two in Now market we countries. And one of half those, go the as launch there some we Malaysia, this of obviously, second as to in bank related we've coming will

And levels. what the that peak QX, services you'll see is QX structure the of cost financial at

we Digibank those what see but investment Digibank is between got won't the relatively you've level business of takes terms overall, launching, find that have we our down. -- Grab graphing loss expect while puts come and worsening cost to in two business, post of EBITDA quarters we a flattish losses and our our So continues the

Piyush Choudhary

lot, very Thanks helpful. a its

Operator

ahead, with from comes Mark Our go Mahaney Please Evercore. next question Mark.

Your line is open.

Mark Mahaney

kind come the that will provide Is the a can can you go. want to? This out think one low steady-state about incentives. there's indicates base just of the incentives continue disclosure case. down you. coming percentage those DMV. how and and there incentives overall one them just that I be that level of the to there I you us as of Thank segment, is natural clear to assume question Is segments think pattern great ask -- about help incentives where about they've a they per down can of that very a

Peter Oey

Hi, Mark, this is Peter.

has of percentage saw a we Deliveries, that Yes, been incentive about roughly improvement in Let down, one. coming another quarter-on-quarter as especially GMV. from me bps a of XX take

to for to us still Deliveries we where think there's today, optimize. are I in the continue opportunities

also, that and Mark, potential marketplace position. gain about improve as at our we the think category where also also to balancing we're can and opportunities Now we looking

continuing to in Deliveries So, now. growth in times we're committed are on as our well stated business, continuing we're we've but our also a to plus we further close keeping that multiple that getting that stimulate as stated margin leadership eye X% we've

So, that delicate it's continue balance we'll manage. to that

bit we bps that did a marketplace. incentives, is reinvested see terms in and what Mobility, we into little uptick of of about on the XX a quarter-on-quarter,

from incentive GMV. demand Mobility strong moment. at if last quarters, that of look at X% as where the very hovering three around past seeing in we four are as are we've you percentage an the looking a QX And if the We at been to Mobility, quarters,

seeing level of comfortable of we're I incentives. we're in what far so that terms think

experience that make opportunities time have healthy meet to time the to further and act supply consumer continue of can there incentives road Again, will mark. driver the in the X% in Again, to sure in the what you're Mobility we on that a little seeing the demand. drivers hover that balancing But with our the more bit today will around deliveries, we're where is number we seeing, flex be and the marketplace. the might demand

Mark Mahaney

you, Thank Peter.

Peter Oey

Thanks, Mark.

Operator

America. with comes question Salgaonkar ahead. Sachin from next of Our Please go Bank

Sachin Salgaonkar

couple I last Congrats changed how understand have guidance. the second, has to be months? that of a And questions. One go perhaps the landscape, numbers. you both would a great in delivery, the to few back Mobility in for I'll and and from competitive set good of

that fact to your at a Given rate your you one at loss talked And even And be guidance, understand for conservative, especially wanted and guidance the that clear Thanks. Digibank the at you and of year fact to your GMV give continues, a any it? in related could appears continuing year? rate you And that this then about investments particular is range to Mobility maybe you guys is question us investment the reasons breakeven provide just but you next the run mention on are XQ. if guys looking from run at Deliveries any when assume that gets you good. did reduction conservative, sense

Alex Hungate

Thanks, Sachin. is Alex. This

Let question. the take me first

our on is than frankly, focus, consumers rather primary competitors. Our our

leadership that, in and physician theme comments to consistent first reliability. quarter all this improve greater about seen even We've even striving in has worked grow we that has in a the the further while quarter. heard the evening our allowed You've us competitive affordability for

double do that. Therefore, we're of going to going that. on more We're to down

have scale of don't scale and get the us the competitors Our more that profitable. that out be to allows and affordable that we operating leverage have, therefore, we

margins able and quarter. the been at time, improve the incentives in same so, And to we've reduce

environment competitive able which been the key our up, of to money on to deliverer’s the year-on-year. the drying true conducive that's points We've in for which on incentives, means incentives that basis take spending It's focus. past So that was be shareholders' that XXX is largely continues out incentive. definitely push the by funded

that's improvement. obviously the a rapid So environment that conducive be in to

our But in be addressable focus continue addressable primary in still like on to way, to I of that to Southeast service and In been at will only market continue the one great XX us market said, our has providing incentive reliability consumers to will great Asia. with in Southeast the that allow grow -- Asia. We're primary at prices. affordable

So our competitors, rather key the focus market is in key and share through affordability that's focus than service. of taking better our growing better

Peter Oey

one. take I'll Sachin, next the

was I question our I conservativeness the think questioning your guidance, the think EBITDA of guidance. you're around

a feel and the there we yes, that's flexibility also think, team, give management as that healthy. marketplace are philosophy sure and we conservativeness believe a our make I our take that business the it's guidance, that we the that is leaders in important to we

tap that support give when to also to an and also We of also for supply extra us consumers. offer and we make also the ability sure to able merchants to drivers our into need we're that example,

important. and healthy tied as that to leadership again, marketplace So equally is the critical our is market marketplace

we those levers. So, control

of five we able always margins that quarter-on-quarter to our pull, quarters but want we and achieve. our to in now our trying within our seen demonstrate we're reach, levers to where sight is know delivery You've and consecutive

terms you So, how I forward. think about we're give color a you -- I we of of hope that bit in a it going and how gives

first days. early still this it's We report. a quarter earnings -- is Now

still have pretty quarters about But the do. So, far, we're three more good so business. we feeling to

it's Your with third of of Tel. we work question, a that set we're venture we Look, there I comment [ph]. is investment terms joint around Sing making. was that Digibank Again, level of -- in the think a it don't with because

of So, needed. in what's terms we balance that

you But we We're is I deploy assure capital in very of that for our terms careful. we're banks. cautious digital can how very what

Alex break clear our next have even over for As we a the mentioned three very business. earlier, Digibank target to years

launching that's it's to we're how that very but required with deploy at months, investments. there against looking returns allocate over six over bank joint that our the of future And venture we again, that is will back are we're important it's the get partner the Digibank set a that we period. the every next We next dollar looking itself where capital

Operator

from next ahead. with comes Killa Our question UBS. go Please Navin

Navin Killa

there rates of particular seem to Or any look Hi, have your that for had opportunity. kind just I how declined three both questions. and we peak should to thank they actually for If took? delivery the this look strategic are quarter-on-quarter. at you, you at I forward? going mobility, I wanted initiatives understand,

the the kind drive you'd Would Services. to the that's for as you're of fair that of well? business, your Thank share last there seen Do medium-term that. asking of Financial this well look the went have I you is margin And question could reinvest Delivery X%, Secondly, ahead us you probably assume number if with my the back guess I'm you is reason above loan at do target the at tracking on that, business it to growth. we be think kind I book to mobility, your I Delivery And target levels, how when question of you margin that? itself? take how look upside had, because I guess obviously is, when you.

Peter Oey

all me take those questions. let mean I Okay. three

rates. take Let one take first around me the

I is billings. -- all mentioned look Mobility, which to rate, think the as numbers, Actually, GMV if commission way is you your you gross pre-revenue Deliveries. both at the this a the on from

I down, year. it flat, a Our quarter-on-quarter deliveries on XX.X% actually was in Mobility relatively quarter. was the XX.X% flat. basis. it's in this but quarter fourth was XX roughly bps first the mean XX.X% really, It's of

XX were actually at look And into back bps was part the that rate about is as look slight as marketplace. a you standpoint, Mobility was Mobility reinvesting down. up was of from we XX bps net If then Deliveries at and revenue tech you the

reinvest first continues position wanted in we to and of leadership demand sure driver our healthy our the the category move the as we part make be -- back for to to were looking sure Again, into look consumer we very mix, as from of just to time make quarter, and continue strong. it that had at very as especially we experience, marketplace, supply. strong marketplace Again, the will to the we we that time also condition

Deliveries, around our question, of Second X%. margin

tracking our the side. X%. us at the us some we that lot countries of also that core above our in X% If today, towards inching a couple also other markets deploy confidence margin that of gives from majority gives they're And you markets core the a today, some of playbook can of look actually actually, closer strong that of

just So the we similar Again, as time it's redeploy at those to to a even committed some driver on or it whether the Mobility, it's side may side marketplace. again, overall, to the a business merchant the into where consumer also. the also side, margins same to we're of time X%, balanced sure marketplace, that be time will make

balance way we're that do manage So the far overall, that of didn't need terms quarter, there. we all-time high now, margin we in said the we'll the we very plus committed, We an -- multiple that. future the times in the in to But first X% delivery stepping got and along back, quarters.

Alex Hungate

Maybe add was Peter saying. just to to on what

very think The days. you way much the small, I thinking we've about business early But upside. see year-on-year the strategically, drive Plus, still higher advertising to can advertising about is managed we margin. when we're still talk

this generating quarter So, now million. $X in

So still that's small, $X bottom to but an the million contribution line.

business Deliveries growing So, about when and the into think reinvesting we growth.

the scale reasons the grow reach is advertising platform to have business with that future. of profitable really for the very in advertising good to a sufficient want we One

Peter Oey

we healthy Yes. also. you level loan key level. our XX% last Alex. question disclose a credit about our from that low here prepared at was is that book, very Thanks, up also your remarks also, But is disbursements And share NPLs at number. very our a is And loan Navin, what's year-on-year. on And don't the the cost heard

also our we're ecosystem we're the So, as feeding business. our making risk as sure balancing well into lending for

Operator

conference remarks. like I turn Peter to over any back for session. the would to concludes our This question-and-answer closing

Peter Oey

speak to in call to Thank reach visit please or time feel appreciate our you, you. We'll you team free again Investor any We Relations our if And everyone, Investor join for the out you. QX. questions, time. Relations our to website. taking Thank today. have everyone's Thank

Operator

Grab's quarter Thank conference XXXX first Call. concludes you your earnings for This participation.

now may You disconnect.

Grab Holdings Limited (GRAB) 18 May 232023 Q1 Earnings call transcript