Grab

[winston]

not vested

Ads Business

Grab - while not an ecommerce platform in the traditional sense - is also one regional super app vying for a slice of the ads business.

In its Q3 2022 earnings call, Grab noted that revenue and GMV from enterprise and new initiatives rose 113% and 18% year on year respectively, driven by “growing contributions” from advertising.

That said, Grab noted that it was “just scratching the surface” in terms of ads penetration.

Ecommerce’s growing ads businesses may come at the detriment of customer experience and merchants, who might spend 10% to 20% of their sales to gain visibility on a platform like Amazon.

Doing so is also not without its challenges: Grab’s ads business is reportedly struggling with limited inventory, “clunky” tech, and an inability to sign major advertisers, according to The Ken.

Similar growing pains may apply to many of the region’s advertising hopefuls.

Source: Tech In Asia

[winston]

vested

Grab receives a more bullish call from Aletheia Capital; takeover of GoTo reiterated

If the trend persists, Indonesia-based GoTo might suffer a cash crunch with its US$2 billion in net cash depleting by end of FY2023. Grab, on the other hand, holds some US$5.5 billion.

Gross merchandise value of food delivery in Asean grew by 5% in 2022. This was a significant slowdown from the 30% growth seen in 2021, as more people eat out instead of ordering deliveries.

Source: The Edge Singapore

https://www.theedgesingapore.com/capita ... reiterated

[winston]

vested

FULLY VALUED (Downgrade from HOLD)
Price Target 12-mth: US$2.93 (21% downside)

What’s New

Deliveries segment to see a sharp improvement in adjusted EBITDA in 2023/24; expect group adj
EBITDA breakeven in 2024 due to fintech losses

Current valuation implies long-term EBITDA margin of 16% vs our estimate of 12%: Mobility & Delivery are lower margin business than e-commerce.

Downgrade to FULLY VALUED with an unchanged TP of US$2.93

Source: DBS

[winston]

not vested

Eyes on profitability timeline update

We think Grab could report an EBITDA beat for 4Q22F, helped by an easing competitive landscape which allows for further scale back on incentive levels.

We expect FY23F to be a year of mobility GMV recovery and deliveries margin expansion. Grab is launching affordable options to expand its TAM.

A potential catalyst is Grab bringing forward its adjusted EBITDA breakeven timeline during its upcoming 4Q22 results announcement. Reiterate Add.

TP: US$4.50

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 547BC5D9DD

[winston]

vested

Grab Reports Fourth Quarter and Full Year 2022 Results

Q4 2022 Revenue grew 310% year-over-year to $502 million, and 2022 Revenue grew by 112% year-over-year to $1,433 million1

Q4 2022 GMV grew 11% year-over-year to $5.0 billion, and 2022 GMV grew by 24% year-over-year to $19.9 billion

Q4 2022 Loss for the period improved by 64% year-over-year to $391 million, with 2022 Loss for the year improving by 51% year-over-year to $1,740 million

Group Adjusted EBITDA breakeven guidance brought forward to the fourth quarter of 2023 from the second half of 2024

https://finance.yahoo.com/news/grab-rep ... 00221.html

[winston]

vested

Grab reported a 51 per cent year-on-year (y-o-y) drop in losses for FY2022 to US$1.7 billion from US$3.5 billion, as revenue for the period surged 125 per cent to US$1.4 billion from US$675 million in 2021.

Excluding a US$68 million uplift in revenue from a business model change, in one of the superapp’s markets, from being an agent arranging for delivery service to becoming a principal delivery provider, FY2022 revenues still exceeded the guidance of US$1.3 billion.

The fall in losses was driven by total segment-adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) turning positive from a loss of US$125 million in FY2021 to a positive US$65 million in FY 2022.

Adjusted Ebitda fell 6 per cent from US$842 million to US$793 million.

Source: Phillips

[winston]

vested

Grab brings forward profit goal after quarterly loss narrows

Expects to reach positive adjusted earnings before interest, taxes, depreciation and amortization in the final quarter of 2023. It previously expected to hit that goal in the second half of 2024.

The company’s projections for 2023 revenue of as much as US$2.3 billion and adjusted loss of as little as US$275 million also came in better than analysts had estimated.

Grab has so far refrained from mass layoffs even after its shares slumped following its stock market debut in the US more than a year ago.

Its cash and cash equivalents shrank to US$1.8 billion from US$4.8 billion a year ago.

Source: Bloomberg

https://www.theedgesingapore.com/capita ... ss-narrows

[winston]

vested

Driving sustainable growth

Reduction of incentives led Grab to beat topline and EBITDA expectations.

Deliveries segment achieved 2.0% EBITDA to GMV ratio (+1.6% pts qoq).

Grab brought forward its adj. EBITDA breakeven to 4Q23F (prev: 2H24F), but we believe its FY23F adj. EBITDA guidance range remains conservative.

Reiterate Add and TP of US$4.50 as we continue to believe that an easing competitive landscape could enable Grab to accelerate its path to profitability

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 2AE0DD6201

[winston]

vested

Singapore's Grab brings forward profitability goal, sees strong 2023

Shares of the company fell about 9%, on fears of a slower recovery, as Grab projected a return to pre-pandemic levels in its rideshare business only by the end of the year.

Source: Reuters

https://www.reuters.com/business/grab-f ... 023-02-23/

[winston]

vested

Singapore's Grab speeds up profit outlook as cost cuts pay off

Nasdaq-listed tech group expects to break even sooner after annual loss halves to $1.74bn

Grab forecast its 2023 revenue to come in between $2.2 billion and $2.3 billion, up 54% to 60% on the year.

In September, Grab announced steps to improve transaction frequency and user engagement through the expansion of the monthly subscription program called GrabUnlimited.

Grab incentives totaled $1.97 billion in 2022, up 10% on the year. Though still significant, payouts to partners and consumers during the October-December period shrank 20% and 35%, respectively -- the first year-on-year decreases since the company went public.

Source: Nikkei Asia

https://asia.nikkei.com/Business/Techno ... ts-pay-off