Grab Expects Adjusted EBITDA Breakeven By H2 2024

  • During its first Investor Day, Grab Holdings Limited GRAB shared its plans to break even on a Group Adjusted EBITDA basis by the second half of 2024 as it accelerates its path to profitability. 
  • For the second half of 2022, Group Adjusted EBITDA will likely be $(380) million, a 27% improvement compared to the first half of 2022. 
  • Grab expects Group revenues to grow strongly between 45% - 55% year-on-year in 2023 on a constant currency basis. 
  • Grab also expects to reach breakeven for its Digibank operations by 2026.
  • COO Alex Hungate said, "We are driving growth through strategic initiatives like GrabUnlimited, GrabForBusiness, groceries, local partnerships, and advertising. At the same time, we are rolling out proprietary technology to enhance the efficiency of the platform for our merchants and driver partners. Finally, we plan to focus our fintech services on our ecosystem where we can serve customers uniquely well and create a platform for the launch of our digibanks."
  • "Our cash position is not something that we take for granted. We will maintain a prudent stance in how we allocate and deploy our capital with this cash preservation on top of mind," CFO Peter Oey told analysts on Grab's first investor day, Reuters reports.
  • Grab reported second-quarter FY22 revenue growth of 79% year-on-year to $321 million.
  • Adjusted EBITDA loss margin improved 90 bps to (4.6)%. Adjusted EBITDA was $(233) million.
  • Grab cut FY22 GMV growth outlook to 21% - 25% Y/Y from previously expected 30% - 35%. It sees revenue of $1.25 billion - $1.30 billion versus the consensus of $1.25 billion.
  • Price Action: GRAB shares closed higher by 2.18% at $2.81 on Monday.
  • Photo Via Wikimedia Commons
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