GRAB - Earnings call transcript Q2 2024

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Operator

Ladies and gentlemen, thank you for joining us today. My name is Ed, and I will be your conference operator for this session. Welcome to Grab's Second Quarter 2024 Earnings Results Call. [Operator Instructions] I will now turn it over to Douglas Eu to start the call.

Douglas Eu

Good day, everyone, and welcome to Grab's Second Quarter 2024 Earnings Call. of and Director Grab. Finance Eu, Douglas Investor Strategic Relations at I'm Financial joining Tan, Officer; Chief Chief Anthony today and Executive Oey, And are Hungate, Chief me Officer; Alex Peter Officer. Operating

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

we prepared remarks, will the call questions. open Following to the

and events, we and We number call, forward-looking of be performance. duty including to not based our are any in our call, will and undertake forward-looking business risks could expectations. differ earnings update in beliefs future this During statements. materially a statements and on future SEC. due uncertainties making financial Form XX-F results on filings current do statements These this earnings other release to about described our any the and Actual as the with

discussing supplement, IFRS earnings this a be to on the of non-IFRS materials measures not also measures. measures. refer financial to non-IFRS do will IFRS reconciliation but We Please financial measures financial for These call. replace

information, our please refer release press supplemental available more on IR website. earnings presentation our For and to

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

Ping Yeow Tan

today. Thanks, Doug. joining Thank you for us

at all-time on All drive our group new actually to group our the GMV, quarter, During on-demand we focused year-on-year. growth. highs. strongly profitable and grew hit leveraging XX% revenues On-demand platform scale monthly users transactions transacting

term. on products and even This face growth headwinds. We generating we also foreign delivered our new focus the scale of in profitable our EBITDA consecutive XXth and sustainable relentless long at underscores as adjusted quarter invested into group improvement currency

positive turn second cash cost achieved for our adjusted giving to the the flow year adjusted free growth discipline, And us positive as XXXX. quarter balance for and confidence free full of we cash flow we of

to best service deliver company, value and partners. quality As platform our the users committed and a we're for

platform unlocking key tech growth. product led be to to has and strategy Our been

of During the and and users. our to high-value quarter, out diverse meet across more affordable offerings we rolled mobility needs deliveries the

providing on users. focus our also tailored more to solutions We

For today, for and program to same but orders group high users. example, and convenience our time, in the greater At Dyna subscribers all-time in nascent begun products or GrabUnlimited, gain the hit a family accounts, ] strong bring advanced our deals quarter. traction booking, have [ new total subscriptions

excited public to On banks launch platform, digital Indonesia, with fintech the June, a continue of opportunities digital in together very our operational the now financial our we banks, our bank have inclusion driving Superbank had GrabFin, all about the fully we across in are we X region.

lending GrabFin Our reflecting us. Digibank Digibank our total users growth, the across disposals our robust continue have deposits, placed trust and to demonstrate in customers and

GXS XX% to financial with to rate billion of Bank loan strong fin The across scale ecosystem. in million, second the our substantially platform Digibank GrabFin and services quarter. Malaysia by in leverage disposals Singapore $XXX underpinned GXBank $X Deposits in quarter-on-quarter growth by over in is an the and grew across hitting the total of ability annualized Grab run the

X And GXBank approximately deposit XXX,XXX XXXX. has users Grab which GXBank transact than as the with instance, more in customers, in for Malaysia, X include GXBank over account. July card since in year Digibank For than launch, public a XXX,XXX of holders GXBank its less on debit

than X public June. launch million months X following in its in crossed August also deposit Superbank customers less in

region. across a XXXX we continue of to the second ecosystem look approach our users partners embrace we the and half and towards will As outserving beyond, X-pronged

the be economists average. growth region the our we scaling continue outlook rates forecasting GDP faster Southeast First, We're of on growth world bullish ecosystem. in will efforts to the our with to dedicating long-term Asia midterm than

all leverage platform We or opportunities demand. inbound our a of our it of on-demand we backdrop to offerings selection of driving high-value across advantage, our our tourism capture affordable assets flows and services. domestic against strengthening and this cross-sell in stronger improving will And be growth, the various

Second, continue will AI-led be and cash profitable driving generate doing solve actually and By fastest in for so, platform the value impactful possible we to previously, problems sustainable shareholders as way to Southeast growth. shared in we the have everyday will creation we most Asia deliver and free in our flow.

and we gains partner time, investment our and across to innovative efficiency are experiences. same AI continuing drive the deliver our generative in business the At customer

rolled markets For scale. X DISH descriptions out of AI-powered at out have in example, X we

merchant improve have are This our the Our leveraging to significant used of descriptions. AI to marketplace. AI partners and one continue improvement many but experiments shown AI-generated a examples capabilities rates foundational long-tail is that our of we from checkout in generative way

users discipline build and And the Regional returns our pole finally, clear agile shareholder profitable in our continue business. drive intention to sustainable but corporate than cost lean striving to cash organization, also a so generate we'll declined flow. to XX% and quarter continuing to here will we second improve be only free outserve year-on-year, across by by costs growth our ecosystem position not is in

firmly we pleased is of business of pass publish the our the welfare the post way governments are adverse Grab's to a latest we long-term as merchant bottom I by to region. report Gaemi over recovery supporting and this our announce believe heart serve linked users our weather goes our time can all to partners times Before ESG to health communities across intricately the the triple demonstrating events affected commitment driver planet. help our and to and part we And regard, any our delivering to to Alex, I'm success also in in as calamity. those like the well line business. of steadfast this that and respond We Typhoon to our is play during who challenging in other commitment my out quickly

partners to by they support For our activated Philippines, program head are severe particularly typhoon, our communities affected weather. we in the to hot assistance our the provide by

our real-time areas. affected safely to to and our GrabMaps navigate partners utilize we Additionally, reports help fleets from

as donate points rewards we're on, are has these to organizations towards Food all calamity. From for Red Group together recovery partnering who efforts. and moved we Grab and like post Jollibee and quickly their our serve grateful McDonald's Now our users partners community all hearts, Cross for during Gaemi came to

time now more over Alex, hand quarter over cover will in I will who the detail. highlights to our second operational

Alexander Charles Hungate

Thanks, Anthony.

the generated along product next with improving reliability quarter minutes, with our affordability with We of the I strong few deliveries the the Over Starting in services growth from will and operational highlights by share and initiatives, tech these deliveries. drivers growth results. and our of strong significant some Jaya. underlying

deliveries traction, constant drove we gained reaching save a growth frequency food adjusted stable users currency basis, exhibiting average year-on-year. than GMV EBITDA these Segment we On product remained by a transactions higher as X.Xx XX% invested on year-on-year XX% new nonsaver of ago, deliveries as order Saver in even around transactions basis, for a from XX% grew year deliveries XX% creating meaningful rollouts. further levels with users. ecosystem, our margins uplift

price new lot ladder, of priority with Saver saver joining deliveries segment. delivery. XX% new transacting see transactions. to pricing also a more high adoption of deliveries at of grew users monthly deliveries the the On relatively to insensitive of the end we Grab X% in attracted users this currently, potential We platform through

on support focused and ways new particularly innovating office. to gatherings return large the social We're to

orders. relaunched revamped and we example, group For

Xx pass our food And basket So driving group other to sizes higher enabling were which us and each by delivery growth to we've accelerates rates. basket fees, amplify with retention, connect platform, growth. to than and on average Grab orders. cost the to in turn on lower users we're in that seen sizes drive scale This new batching user form users the able leverage our allows improvements orders savings seamlessly to in of

merchants. self-serve increased merchant partner monthly of year-on-year Asia's partners number increased year-on-year. by median earnings by monthly most advertisers XX% the total average self-serve for advertising XX% active self-serve making while loved platform our platform be our The XX% on our to by We've sizes. increased all active deliveries for choice by strive who XXX,XXX, spend to advertisers We to available powerful year-on-year platform joined Southeast of our merchants of

despite a advertising. we of GMV quarter, penetration of back to for plenty as seasonally percentage further. advertising strongest grow the X.X% in here, business the levels quarter advertising deliveries see fourth latter being our to from penetration headroom the was for generated recovering XXXX From quarter Revenue second typically

to of just Anthony on-demand into platform drive ahead heading leading as We year, levels the by the our fourth the of July in adverse nonetheless. And the that mentioned. in this growth the it to such, we remaining both and rest Southeast delivery segment quarter Typhoon the expect will for in Looking demand we as year. And the the Gaemi see our quarter sequential third position Philippines continue robust, third in weather while Asia, build typically region. to impacted for example, conditions is quarter

mobility now. Moving to on the

our mobility growth of offerings New the expanded GMV while affordability also product GMV mobility adoption rollouts XX%. constant delivery by Similar basis. on grew a existing increased MTUs led to currency growth and and transaction strong high-value segment, to the which volumes, was XX% year-on-year year-on-year deepening XX% powered by

our is this more markets. products. options and now while ride Saver established propositions all X us available of trade-offs these transaction is addressable Grab One or of offers in driving alongside quality the new to bike waiting while car And products times, products growth saver affordable vehicles and for some hailing, the that is longer involve our MTU and Grab safety of our enabled or reliability. core the have upholding passengers market, value the may they which expand

saver X/X the XX% from rides for recorded Grab offering. has with Adoption joined Saver on the levels same transport than cross-sold higher a and mobility in ride transport of month. increased saver hailing uses nonsaver rights were users. platform And transacting frequency in safety which the example, Saver in were the in drive group MTUs mobility XX% MTUs second transport loyalty model Grab also of uplift. X.Xx last transactions X% to Indonesia, joining quarter through the engagement same rides to year, of period platform of food of who our around

X-wheel and to services grew users. further the of maximize which and Today, ride-hailing for Philippines XX% price-sensitive display X/X MTUs in high-value Similarly, of the solutions Philippines, differentiated year continues use growth that the with balance relaunched almost in Philippines, We offering to mobility Move users It underpinning strong momentum. that mobility the was in affordable the of year-on-year. comprise last growth Move reliability our It, less convenience strong this

Our high-value revenues generated standard over as that were per offerings Xx higher such than rides. premium ride Grab

earlier products will such to relaunched product, our hail This product higher-value have no conventional is doubt driver us compared to a of booking which over higher there driver the them. the earnings be mobility advanced ride waiting for was products. this drive year enabled Xx that as ride One passengers per where

comprise today a volumes. Similarly, we proportion have and the product offerings end result product segment the our invest focused and prudently longer strategic new to of expectations did market growth on in IT of growing travelers for mobility term. smaller of of which effect savor launches premium as as corporate quarter. mobility declining our adoption for the quarter net decision in This adjusted rides and such line EBITDA to The changing margins of drive mix the with Move and was to in made a growth deepen penetration users in we second

to committed for adjusted achieving margin plus guidance segment remain of our mobility. We EBITDA X% long-term

our our we platform. Finally, improve on to mission, with of also in line continue drivers productivity

During the existing driver to strong optimizing meet active supply supply the demand our growth. while quarter, we increased driver

X% XXXX, second quarter-on-quarter. and supply In of monthly driver increased active quarter year-on-year XX% by the on

healthy at While remained quarterly active retention driver XX%. rates

Our the sequentially, improve increased proportion demand fulfillment reduction in levels efforts of year-on-year. and resulted driver supply to efficiency percentage Mobility the mobility driver in rates improved rides surge given strong point XX% an supply. also and

and continue services. penetration of business long-term mobility the and as We volumes to user on roll new are grow products room trajectory we see out confident or our ample to and

strongly adverse Going quarters. in growth to continues weather conditions expect we the in the third quarter, and into pace the coming to drive of sequential mobility spite

segment segment constant by finally, Services losses our Financial growing year-on-year. adjusted XX% a narrowed basis, currency This Now on while to grow revenues continues XX% EBITDA segment. year-on-year fast with

serve to advantage collective we ecosystem in Fintech strong to acquisition continue and and and peers. have Digibank banks and users other scale where to underwriting customer our traditional partners power business We relation lending a

to loan with the reach we of or Total in lending of products of loans in disbursed an year-on-year ended a flexi growing million our in grew annualized billion. by growth we run the second from And GXBank XX% $X $XXX GrabFin $XXX portfolio quarter And Malaysia. continued remember, loan million, rate GXS ecosystem underpinned to volumes in and launch Bank the quarter yet in Singapore. have lending

around credit losses. loans and risk-adjusted on X%, stable with a returns portfolio stance risk credit even at accounting our We allowances prudent after for continue XX-day to for on nonperforming we're maintain generating healthy loan

As on XX% $XXX more customers the end the The of by million the prior in increased an expanded for users second rising continues GXBank to $XXX growth deposits bank the quarter. as the Grab and GXS at platform. driven across Malaysia was from million number the by of from GXBank quarter, strong acquire deposit to in

its over deposit GXBank more as XXXX. In less XXX,XXX since XXX,XXX customers, launch, than July than a GXBank year debit which include of has public cardholders

We have in cross-sell Services deposits Overall were customers be driver Singapore regulatory a in also opportunities. serviced again. as business growth to and Bank on continues of more GXS Financial strong then, ecosystem raised our caps

supply a nearly the driver increase earlier so spoke growth year-on-year. the I Philippines, Move expansion our example, an As in the has offerings X-wheel active pool our in in of IT about Xx resulted of

opportunities So advances new driver hitting Grab in services to that to cross-sell high lending, saw drive cash monthly other a June. such enables as Philippines us record we

Concurrently, higher loan rates partners loan. higher And Regionally, merchant loans active Xx hours merchant are average earnings driver almost as driver merchants X.Xx X-month exhibited without drivers retention. than higher that partners loan. compared exhibit partners with higher an active a transit active and retention loan with recorded without to an and with partners

Going growing, our further opportunities growth significant fast business financial and see forward, to both services we across for GrabFin ahead businesses. be Digibank and our continues

our greater reliability continue enabling closing, efficiencies leveraging drive across our initiatives convenience, in by marketplace maximize to product, platform to tech-driven business. And cost to we scale will Grab efficiencies, and

sectors particularly to on dedicated capitalizing stakeholders the advantage our create food scale for leadership all on and platform. users transacting million delivery in our mobility our and XX to are value We the monthly currently

over me turn call Peter. that, to With let the

Peter Oey

Thanks, Alex.

between our to led saw currency impacts highlight going diversions to and constant translational growth our to foreign results, a exchange headline Before it's that that important rates. Southeast Asia

Asian on-demand basis points on against rates. the rates Southeast currencies this year-on-year growth an to U.S. on year-on-year, weakened As points the the translated dollar revenue growth and basis XXX of XXX impact GMV

region in seen half headwinds, FX GDP This by in the these is in region. remains Southeast Notwithstanding strong, in demand the strong our across and Asia growth first year-on-year of domestic driven demand continued recovery underlying the the XXXX. positive as tourism

Now year-on-year revenues a all-time high as constant revenue turning financial grew million. reach to or XX% our we Group let was on up a XX% growth the constant MTU and in me start and transactions. On basis with Mobility year-on-year quarter currency or QX $XXX recorded XX% XX% in results, an on to revenues. basis, a strong second mobility basis of currency

Our was deliveries grew advertising Deliveries to food and Incentive growth top MTUs constant XX% line a basis. spend we or basis grow as as XX of deliveries, in drove proportion Grocer. revenue continue XX% GMV down a currency deliveries points on year-on-year. Jaya

spend. of mainly on growth further Services Financial Bank payments GrabFin up by XX% driven lending And incentive revenue XX% and currency was optimization GXS across and or a basis from constant

on-demand level XX% on-demand to constant Moving to strongly a a on basis XX% constant to basis, on basis growing continues XX% and XX% GMV currency GMV $X.X Mobility currency GMV. GMV segment on On billion. grow to X% constant deliveries Year-on-year, currency or a basis and by on second billion. or $X.X XX% at grew or year-on-year a quarter

in million. Mobility year. million, X.X% second XX% for period XXXX period segment margins was were $XXX and XX% Mobility to in in last EBITDA of from same year. the year-on-year year-on-year the EBITDA quarter segment adjusted last same Segment the grew EBITDA which X.X% grew declined quarter by adjusted adjusted the $XXX

invest efforts services. new and in this with mix rolling products out driven consistent also mainly is Now to and by our product

million, points to adjusted expanded reach of XXX segment deliveries on $XX margins GMV adjusted from increased our percentage X.X%, optimization driven while a contributions Delivery as EBITDA greater to segment also grew of basis EBITDA and year-on-year lower expenses, Xx Delivery spend by over by overhead advertising. GMV incentive

remain segment to The to drove overhead Our and our segment XX% lending strategically negative products year-on-year break higher margin long-term monetization reductions $XX reduction Services were million. by banks losses Overall, Financial for achieve same improved X% later in the attributed of in we time to and revenues committed adjusted EBITDA than narrowed the expenses. losses our also the that at even for the investing deliveries X% new in to the guidance also plasma plus across no end of business. growth XXXX, of and mobility by while EBITDA initiatives adjusted

XXXX declining coming to costs $XX million the and in organization On and for on regional year-on-year copper compared same the We XX% million cost million the costs fixed regional components. $XX at in from across variable cost prior period came focused driving quarter corporate quarter. with $XX efficiencies in both the

driving is improvement year. Our million the adjusted last line growth. quarter the million demonstrated towards of was by EBITDA group an improvements both of for quarter, top $XX and commitment same adjusted $XX sequential XXth bottom Group our EBITDA from period

net positive to This Our of positive we our deposits in recorded from quarter, customer cash banks. in million $XXX reduction million tax, operating $XXX cash the attributed income inflow a combined improvement momentum before an losses for was a year-on-year. with for activities

cash flow a an $XX $XX improvement basis. free on CapEx. a profitability reduction in of this in and a quarter negative year-on-year trailing Adjusted $XX million was and million represents increased following second million XX-month On basis, the

improved As expenses. second restructuring and million loss for negative by increase operating $XXX our mainly on to million lower quarter revenue year-on-year in $XX it to a basis, attributable

improvement income exchange million offset adjusted EBITDA loss expenses IFRS IFRS inclusive is compensation and line expenses. million million of of our million to negative of noncash of from net share-based foreign $XX the in quarter expense losses, loss $XXX of year-on-year. by by $XX this $XX was The below $XX largely net $XX for driven in million tax the loss operating improved by increases million

substantial sheet at the Moving the stood Gross liquidity billion on from improvement second quarter, $XXX part quarter, the to from to our and growth customers $XXX million cash is of in inflow $X.X GXS of Bank $XXX GXBank, and position. liquidity the end million attributed cash the as to balance increased with quarter. a prior which prior from which the million compared to of deposits at an in

billion second similarly to the of billion the quarter quarter. the of end end Net prior compared liquidity at the increased cash $X.X $X at

million $XXX authorized over an principal X.X quarter. our additional in we second repurchased share of to repurchase As aggregate program, the shares million the $XX.X million amount

$XXX have we principal the retired Cumulatively, amount of aggregate shares repurchased million. million in and XX

ahead the half we GMV drive XXXX, to look adjusted we of second EBITDA growth. to group As expect on-demand and sequential

continue We our will engagement offerings new users. serve platform users among the our loyalty expand across product to innovate existing and our and while to improving

revenue XXXX initiatives, contributions along the growth accelerate and they such We both to expect ramping as as the scale. beyond banks advertising, new with from up

want guidance $XXX XXXX maintaining at land revenue we our $XXX to an full EBITDA $X.X for guidance of of our range. million On end of headwind, year-on-year and billion to growth. EBITDA year guidance to and the call revenue currency expect we XXXX, XX% upper million, growth billion reported out $X.XX XX% to roughly the of year-on-year adjusted our total outlook percentage point that X.X I our assumes guidance to are also

regional expectations we year-on-year, maintain will for costs copper in to improve costs, remain base, to prior then we expect our overhead cost discipline copper On managing and our stable. from improving regional continue costs to

the remain XXXX. achieve to to adjusted cash full full year-on-year committed flow year As now we for adjusted and improvement flow, cash substantial positive year driving expect free for the free

we order remain our product generating investments in to the us our term. committed long and our to ensure is also conclude, deliver value line strategic stakeholders to growing while continue important flow and cash in our for It to growth. on growth innovate free on top delivering and offerings business sustainably To anchored competitiveness profitable

gratitude your I shareholders Anthony, Alex like to our express users, our partnership. continued would partners, trust for to As our and and always, to and our grabbers

open very to Thanks time, much up now questions. for call your we'll and Operator? the

Operator

Pang at the question Your Goldman Sachs. Vitt of comes Instructions] [Operator first from line

Pang Vittayaamnuaykoon

you for note a that growth as industry Could of U.S. over of also if solid I actually a quite some and FX year are you against strong not share in Humber on in your the this and of quarter. GMV the second half dollar, also color seeing weakness that perspective? the what second in on terms the second congratulations macro looked Also on the result quarter. competitive quarter revenue the

one. meet even your actually you Are which even in to some market, potentially guidance That's end the gives beat the upper room or of the on guidance for number improving seeing sign to your there's still? you you confidence question

Question could the number the margin more will explain you dip And and behind on is color you coming two, also margins mobility. on reason the provide this? EBITDA how quarter-on-quarter, color in in Can some quarters? also, what provide on trend these

Alexander Charles Hungate

questions. Great Pang. Thanks,

confirm me start, to to then Let Peter hand just I'll the guidance.

you're has is I the you So have growth headline U.S. did quarter, far the so think, know, The second the yes, on in big weakened, news right, this U.S. good quarter. strengthening that, quarter-to-date. dollar a dollar as X% impact around

Asia. headwinds in those for strong Southeast quarter. the quarter kind outlook here from into of us in macro tailwinds So the The turning second looks third

where direct at China tourism foreign well grow particularly behind forecast Asian still well, it recently visitors GDP the year Indian we're the Singapore for although So upgraded full is levels. and as XXXX. strong pre-COVID. economies ground, was European then seeing on And inflows, robust to visitors continuing as are its

I competitive. on competition, our guess question your always then And markets been have

change no there. there's So

the leadership, maintain both in continue We and to our in every category market. region

both So along tech seems and at in consistent XXth That quarter improving our you've to advantage, this same as our gaining simple. drive traction. our profitability affordability quite strategy from while profitability. use reliability with to We and be improvements product scale growing is time seen in of the investment

because all now to as more And MTU reliable and that. consumers as of attracting is all-time they're At just makes well hyper well high. group have as and none an our just-in-time the as affordable, unique Grab's competitors consistently we believe time at we're same as that GP, more like mapping, the batching obviously growing allocation, of us reliability

show any of that way our have replicate any profitability don't for scale in because -- in So sustainable same they we competitors strategy technology the markets in as our the and it's difficult to are. that to simply very local

is remarks. that hope positive. I update in trading in the comments The prepared came across

deliveries been demand that in those So we strong quarter this typhoon of the countries. and first difficult for in referred mobility half to has despite conditions several

and So as EBITDA group do expect drive growth as we well GMV mobility adjusted growth. deliveries to both sequential for

you want about Peter, to And talk guidance? the

Peter Oey

So, yes.

EBITDA yes, the will traction So stronger in the the the our there forget be that lending generating deliveries on land heard sequential will Pang, front, you financial side, if now momentum. to there our free in must first Alex the in up both at mobility second that half. and scale. cash well implies growth, also are we GMV is on we're starting confident the business were as as flow picking the at not upper services book. end also that which The half banks than It We're

adjusted the expect free We cash flow full positive for year.

the all So plans elements competitive and throughout in, product in estimates make we -- the all already investments are that the these the baked year.

first half the quarter, shape lot how we're up for we in investments and of that the feeling at the So the good second pretty made a second into with second translating these quarter half. will us

Alexander Charles Hungate

just on And trends Well, mobility main surface, observation runway Asia, next growth on in mobility believe. this particular scratching in for The and the margins. quarters. reasons quarter long we're literally mobility Peter. your question in behind a is Southeast was we that then Pang, second there's our and Thanks, this dip the coming for

to a target So to along growth of want We the by with continuing we TAM target new with affordability, reliability. attract more want users. basically to

are out So users. rolling we unlocking have innovative been affordable new new products. those They

So the is strategy working.

in year-on-year delivery So the constant XX% the to basis on currency mobility similar quarter, segment. GMV a grew

is an affordability strategy. was obviously, with what growth volumes, that expect, led then by which And transaction you'd

So MTU the then volumes year-on-year. at at XX% grew the And XX% transaction even faster growing is year-on-year.

is what strategy we So is the had planned. working exactly

sequentially X% expectations very quarter to net to expectations. EBITDA the EBITDA we plus committed remain the expect line third but second adjusted in reduction mobility. we -- here, with improve our and to lead a in we long-term for effect fourth the our much quarter, And So in did margin margins but from quarter, and of segment

Operator

line second The the Citigroup. Alicia Yap from comes question of

Alicis a Yap

questions. Two

potential to First get of how how peers? I with and back these fight the given the to if defend entrance we will the wanted the that impact platform Grab margin perceived subsidy? other shop plan of on-demand is the need we disruptions with management EBITDA on-demand threat? How to more partnership are service video comment will And

get Second update if and corporate also offering products -- Trans-cab premium any airport the I cars Any you can we And acquisition. update some is that on know also, out either pickups. the on on that? roll progress those

Alexander Charles Hungate

X questions. Thanks, Okay. Alicia, for those

do First one, it yes, we acquisition the top to CAC. work media user drive of use all as reduce well. to our with We major social partners and ourselves funnel

optimization we of lot a there's funnel. go top of So the as do that we from one to next to drive

because, to affordability our funnel that merchant offer that in-app the further the and that with of due app, as course, And deep ability, there's experience functionality confident XX% to Grab scale. Grab GrabMaps largest reliability down region, the the we navigate. consumers in users use the to are the the like GrabMaps advantages all prefer for product example, partner aware, we the across you're But do in markets, of we will about And and for directly driver communicate those driver network with use drivers throughout.

Grab then, banks now, Super And the program and to GrabUnlimited, Rewards leveraging our ecosystem, cross-sell. App including subscription course, of the

replicate. for and consistent scale So to hard very affordability players advantage, media that reliability product tech the and along in-app investment in the is that with experience and social means that

not margins the players in prospects, So and outlook our will media those and social long-term long-term view, growth our margins. impact we're for maintaining the

not are that we confident. sound we hope complacent. I So It's

players the and the are media between interactions We carefully very social industry. monitoring players what are those in other

our with in optimize We combination them think acquisition have us that many once of and the reliability of affordability or relationship provide app. the best possible allows we to

premium then was Thanks your offerings. And about offering. about next for very we're the excited that. premium Yes, question the

So the ride -- high-value generate. in revenue situation because than fact, generates rides, it really twice Grab more about creates a standard that the even per premium win-win twice rides

the partners, attract for us limos, onto beneficial cars and and luxury very more our So driver platform. drivers it's that's to helping more

stayed those They advanced the travelers platforms. with executives. just think of away relaunched. to attract this and on-demand terms the high And them was in of past, Typically, this that from ability supply which the I ride-hailing product, have our in booking all see at platforms helping attract very end. to is is appropriate for But now

Xx over drive to us driver enabling earnings ride. per It's higher

of So basket in more And interested the individuals our own then are actually is higher own driving about for limos about mobility regionally. X.Xx size average tourists. account Travelers both and now us. who for those their in XX% much with transport food premium MTUs

maintain segment that view markets at extremely in for outgoing see tourist this you -- of our is we see as region. North like Asia, into and So we're attractive those we digitally this deliberately you services. them may advertising is And also advertising are from targeting what traveler in India, cetera, et coming can not our some our airports, the

did still the question. It's early we behind launches our premium The saver. days launches a glad that for offerings. for asked you are I'm the bit

well as the for but is considerable next saver critical region. we expect they do the a gain earlier, premium X the offerings reaching to quarters mass scale as So in start the bit growth from

decided or create we I think Trans-cab, it We fleet Singapore taxi had on lastly, accelerate were to in acquiring. use acquisition. our clear aware, that not you from most to the productivity are new more probably to CCCS of to then the And hoped supply proposed

So fact, essentially market. supply that to Singapore add the would, in

initiatives. then and different on But the enhancement we've ways, of fleets lot been most with from drivers we've our attracting where Singapore us higher in in Singapore getting many new a Singapore. supply in working new with we're meantime, work actually through technology, particularly, also obviously, And been the to in in higher productivity many,

consumers think still will I they're So to taxis app. Grab book realize through that able the

We continue to work be the Trans-cab. open with fact, to working taxi And companies. other with we in already

So compensate. supply other we're basically our stride in taking ways enhancing to in and

So as think everything we -- continue. usual, I we business

Operator

Salgaonkar from The next Sachin Bank at question comes of America.

Sachin Salgaonkar

questions. have I X

is look do understand margin. apart see improvement on else there's margin, out changes anything was delivery see Any couple to with we of long-term X.X% this X.X%. on we bit should it? And associated thoughts at that. range the it's near-term is your from in in general seasonality XQ, here? margin? it how impacting last X.X%, the question which quarters, But First a in at a a I guidance of let's should of that, high We versus, hovering EBITDA say, the

your first Second do expect banks you to financial all question better is on than second services. Digi been half. your be all launched half now, countries, in Clearly X have

and So change terms context, breakeven financial of any in in guidance services? in that

Peter Oey

to of at products invest me questions deliveries on both continuing them Let Look, the the on in we're margin, time. take same here.

-- some seen slightly at quarter-on-quarter our look you from a we margin You've up. if perspective, ticked

points. you If at margin from look basis, by for deliveries our basis a XXX about improved year-over-year

think initiatives are also we're see that's our our it. using delivery deliveries. works, in side. There's as decisions lot We've about prominent there's in well The a other also our the making So got delivery We continues in the now also all also, that on right deliveries spoke the were We as of overall, dine-out investing map momentum. about stuff mobility. features good products delivery to grocery I in going a new users into forget ton app. in shouldn't

to continue we'll investments. make So those

investments to balance continuing and time. we're the continue also to those same profitability make So at

So of today, see to and do in deliveries we revenue good and are dollars where in we GMV you'll sequential It's that business. from feel our grow growth pretty our that, EBITDA EBITDA important both perspective. and that we continue the we

of to X% committed terms margins. the We're plus in

one from a swing quarter to quarter. margins see You'll

be a could good are a we for just comes in shooting business and margin where feel we in are spot, in is the from we advertising today, into the mix the also also plus that business. But X% for -- deliveries, that perspective. long-term of the and in Some product how margin

around question Second the itself. banks

loans saw business, Indonesia across saw deposit now -- there was both You statistics especially Malaysia in in and see both as that also the our including the Singapore you our to the banks. our as momentum base. all prepared the at momentum starting and we're in GrabFin remarks, seeing well that what in We're

are that profitability users for the within the XX% holders no by as banks our XXXX. and for no of leveraged there's Grab our want some ecosystem. users also alluded where seen them and we to and products Grab bank remarks, later my to are today, continuing second Over our banks that's in see. those the than leveraging good what break users the a momentum that's in are the remain for also are of XXXX. in good come using XX% of And our get we're who portion we the actually to and And we deposit banks products to later of Grab I committed we've healthy drive And half out more even terms are than

Ping Yeow Tan

Next question, operator.

Operator

question comes Piyush next Choudhary HSBC. at The from

Piyush Choudhary

Two questions, please.

The in GMV first the question. little is a in talk rose ask competitive led segment. what And in you incentive to could reason versus quarter. to the on-demand ride-hailing X.X% to around increase in the across Firstly, spend It of about segment. bit and delivery that's both has first XX.X% XQ landscape

breakup what Secondly, you product how due how mobility would explained persist segment? of how the is will is initiatives mobility on the the product product new into and in new long due drop. have drop of is much these in And mix. change rollout -- margin the new of to to rollouts investments But much

Alexander Charles Hungate

and then activity lot to the booking going not Peter saver the new Thanks, that on just space. advanced quarter, Yes, was been as services deliveries. in well there. also saver mobility a as there's referring omni of we've mobility, launch we've got launching in Piyush. but And in this

supporting with incentives associated were those So those launches. largely

been, it's The was as saying always is competitive activity I there, but earlier.

launches, I the was premium is don't the we product But they product premium a to are in saver because traction second see like factor. the the Obviously, more saying that expecting the of half ahead term. earlier, only launches get went has we changed in the The recently. mix activity. So launches of short any intensification were so very launched competitive mix particular

Peter Oey

up there and seasonal impact people break product I comes also different are also. split months because add, there rides up don't terms also, Piyush, And new Maybe some take the can tourism product in in we between into a what's mix that the it. is of what type of

much for also high-valued Alex mentioned the rides us. our market attracts of As tourism earlier,

new base So product incentives, overall, time. also I mix, balance think at is as the also products and same well a new growing product doing supply between we're as the what

strong as half segment in base a also We're traveler second driver base. anticipating mobility our Southeast are here supply ramping also premium We anticipate driver we up business. Asia. We're growing supply ramping up the

we to we'll margin mobility. also EBITDA half to from growth continue of the to first in continue to expect mobility X% plus drive margin versus committed be a the long-term our for especially And second So business, perspective, in the half.

Operator

Next JPMorgan. question Ranjan from at is Sharma

Ranjan Sharma

X have just I So questions.

year. I half on had see compared last your level to running is half you stock-based compensation, rate a first first the than much run even higher quarter to running second quarter the second from Firstly, to year. -- last at of higher that the fourth the the quarter And third quarterly

cash on when free why is second question is more headcount flows. can your if color And share you higher, the compensation Now is getting your like that? stock-based optimized, your running around

Your guidance is maintained on EBITDA.

in -- adjusted you've but free inflation So flow. seen cash

understand So part? moving the you help us what if is can

Peter Oey

Sure, Ranjan.

we look about roughly year. million for to look to always you we you last the in last count, periods. That the first compensation, $X we're the timing headcount June And have last the than you half. of it comes year was made, to at in we when there's and vesting also Yes, going restructuring. if remember did half, the if that it do half a when year, head compare reduction second last the If that I'm our higher was but stock-based lower

of that half. will see the you'll lot in the So a flow second benefits

as that So XXX be is good And from we're closely I roughly think will cost first about that a say percentage basis. a revenue, lower, to a don't on What half of basis a watching I'll points here. is XXX it year-over-year perspective, comparison. obviously very an it's SBC

that. overall planning And on to comes buyback you pacing deploy and when is buyback manage on SBC, X% program, our at actually currently about dilution, we're judiciously share more just share include is to program our to dilution. roughly judicious give roughly share to we're the another also X.X%. very dilution if it And perspective about our Actually,

delta question around Second all flow, is really between EBITDA and the itself. really, CapEx free components cash flow. difference and between working cash capital free Look, the on of the the

$XX our running So half million. if you look about in is CapEx roughly first the at

And then other working part the is capital.

taxes. probably traditionally is than second year's little Our bit also first the a than half. positive more half component working capital more third And is much in the the last different

certain profile our tax being higher much and are and income but profitability utilized than is countries, profitability in our tax also achieving business other countries also than given So year, expense the just NOLs way that's natural certain our just also perspective. from the entities faster last just the a of are

Operator

The question is Mark from next at Mahaney Evercore.

Mark Stephen Mahaney

about million These sequentially. group I I'll just ask question. one think X.X they MTUs, rose

I that. think the that's in or something last the biggest like had X-plus increase you've years

through inflection growth what in drivers point of the MTUs? So were big just go group the

Alexander Charles Hungate

Mark, for push question. the biggest driver for affordability. thanks the was The

use users new platform. attract to made our scale specifically to this decision we that's to the So drive to us affordability, allowed and

and then users and from So new through to first, respectively, there. mobility we're products XX%, cross-sell seeing we those deliveries XX% Saver and

of So MTUs. that's new injection been a big

MTUs transaction well. the therefore, are then and And boosting as volumes coming

frequency MTU. higher and boosting from getting that's we're users So existing

would intentional this an delighted a year, we about was this our flagged the at revenue start we profitability this indicator we're for are it it, So MTU of new strategy. talked that view, the and the seeing In product underpin that growth. leading increase. We future and and is launches

investment So to we think for it's shareholders. a for us make good

Operator

Barclays. is Next question from . Shao Jiong at

Jiong Shao

countries only in have think other with opportunities TikTok. very the about if know I TikTok that's QX, cost outlook in Could you a or partner quarters nice I on high to because saw you way. competition the my for X opportunities for improvement reduction of sort getting about the potential from market cost. really this a a share? obviously, I in in as regional the or ask revenue already a I've the quarter-over-quarter was next flip quarter. answered But bit want you other your regional My to one potential region the side talk late, well, some have apologies. your a earlier sort you the competition of the in country delivery peers had talked business I in there apologies food Do where the of nice you

Peter Oey

the drive Jiong, for it's regional regional On -- corporate this driving our many I've let costs, costs, take on Alex you to structure speaking we first cost as more one I'll on on very now want competition. business, been down. know, focused And scale been as operating this it we corporate and turn me to we've quarters, and leverage.

of for year-over-year be Alex, regional second And cost I what than gives was you we're the rest our earlier to for XXXX. the say of was how rest our original for here, year half thinking lower in XXXX copper model for bit the did this down basis that that terms will the quarter. the a copper of on cost And of perspective a year. how XX%

want we it's Now we ways more drive fixed variable drive again, we in in or find to cost see -- we're to continue business. going as whether operating our structure, optimizing the to scale, because, leverage

Alexander Charles Hungate

the let growth region. Yes. true, me the potential social is actually. the second upside question from It of ask And media answer the about in --

largest last one that the I GrabExpress merchant GrabExpress we all a users direct the online use is And of as work impact growing. region. social with the of ourselves do our media into marketing -- the services of in platforms category. is platforms see delivery platform. which a with service is social work growing to delivery the mile think there partners we It's to it's outside our instant attract is we it upside service as partners and as And would delivery funnel. we most of attract as food media that see commerce top and The

Jiong Shao

know. to that, there? of flattish costs next Could Peter, know is follow year. I talked the working -- have to kind with in trials in I already terms questions? that about you I probably started update you please may of about with One to past, trials another do know about you I the corporate be also on started comments they want back media, you discussing them. up follow Indonesia have company, Any if as both up And in have social curious just

Peter Oey

due next And we'll guidance do my that and been We'll for to to any continue Jiong, yet It's ways commitment optimize the that. to in do time. business. that's costs. find our we're We'll always not provide year.

see again, corporate you'll to -- into and of structure it. see our costs got And this ways the of also can what fixed cost We'll So those just you is is components. our right? not variable business. continue trend to find cost, You

look we every for So we we're -- again, opportunity where can.

Alexander Charles Hungate

understand. And generation. platforms we on work with I'm we for Jiong, yes, any very large demand the for And several I from. comment the you'll sure won't to But way them as discussions, is use there successful social and specific are media platforms us choose

acquisition So we that accordingly. across marketing them sure our efforts we them of make to work our optimize with we manage and all costs

Ping Yeow Tan

the call. everyone, much, Relations have to it Thanks with more listening team. have conversations Investor than you. to for more questions, And please for you any hope address very guys, all it time. if was I your happy I'm to Thanks, helpful. of

it next time. and So thanks Appreciate again your talk for quarter.

Operator

Grab's concludes Thank for Call. Quarter you This Earnings your XXXX Second participation. Conference

You may disconnect. now

Grab Holdings Limited (GRAB) 15 Aug 242024 Q2 Earnings call transcript