Revenue $122 million, -44% y/y
Adjusted Ebitda loss $305 million vs. loss $102 million y/y, estimate loss $227.3 million
Gross merchandise value $4.50 billion, +26% y/y
Monthly transacting users 26 million, +2.8% y/y
Expects 1Q 2022 deliveries GMV to be between $2.4 billion to $2.5 billion
Expects 1Q 2022 mobility GMV to be between $0.75 billion to $0.80 billion
Expects 1Q 2022 Financial Services Pre-InterCo TPV to be between $3.1 billion to $3.2 billion
Expects GMV growth for each of the quarters from Q2 to Q4 2022 to accelerate to 30 - 35% YoY, subject to shifts in the Covid-19 environment
Grab targeting steady state Adjusted Ebitda to GMV margins of 12% in mobility and 3% in deliveries
(Bloomberg) Grab Holdings Inc.’s stock plummeted 37% on Thursday after the company reported wider losses in the fourth quarter, pushing to $22 billion the decline in its market value since it went public through a merger with a blank-check firm in December.
Southeast Asia’s ride-hailing and delivery giant has plunged 63% since its debut, placing it among the Nasdaq Composite Index’s worst performers over that stretch. Thursday’s drop marked its biggest selloff ever after the Singapore-based company’s quarterly net loss nearly doubled from last year while revenue shrank 44%. The tumble came as 116 million shares changed hands, more than four-times the average over the past month.
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But while spending by customers on Grab’s platform is increasing, the growth isn’t yet translating to earnings. Revenue booked from delivery last quarter was just $1 million. Grab deducts incentives that it offers to drivers and consumers from sales, and its quarterly revenue number fluctuates wildly depending on how much it spends on such efforts.
Its total spending on incentives more than doubled to $583.5 million in the fourth quarter. For 2021 as a whole, incentive spending soared to $1.78 billion from $1.24 billion the previous year.
(14-12-2021, 01:15 PM)specuvestor Wrote: [ -> ]Grab has been burning cash, at the peak about S$1b annual, competing with Uber and I think that business is slight positive now. You don't see much incentives or offers from Grab ride business nowadays
However they are now burning cash from food business. It makes strategic sense if the ride business can subsidise the food business growth but again it won't be profitable until someone blinks. In my opinion they probably should plan for a normalised post-COVID in 2022, notwithstanding omicron variant, that will reduce demand and volume for delivery.