vested
Profitability vs Growth
1Q23 beat expectations; Reiterate BUY
1Q23 revenue of USD525m (+130% YoY) and net loss of USD250m (42% improvement) beat MIBG/street expectations at 26%/31%, respectively, mainly on a narrower adj.EBITDA loss (USD66m, 77% YoY improvement) and lower net interest expense.
But 1Q23 GMV of USD4.96b (+3% YoY) was 2% below our/street estimates mainly on Deliveries’ weakness.
We think the 14% drop in share price in the US post results on the weak GMV outlook overlooked the prospects for improving margins.
We cut our FY23-25 GMV forecast but narrow our net loss assumptions as margins expand.
Reiterate BUY with a higher SOTP-based TP of USD4.00 (+5%). We see a healthy competitive landscape accelerating Grab’s path to profitability.
Source: Maybank
https://mkefactsettd.maybank-ke.com/PDFS/319084.pdf