Grab has reported a loss of US$572 million ($794 million) for 2QFY2022 ended June, 29% lower than the loss recorded in the previous corresponding quarter at US$801 million.
This is primarily attributed to the elimination of non-cash interest expense of Grab’s convertible redeemable preference shares that converted to ordinary shares in December 2021.
The loss included a US$173 million non-cash expense from the revaluation of Grab’s equity investments that are marked-to-market each quarter as well as US$111 million in stock-based compensation expense.
Revenue for 1QFY2022 stood at US$321 million, a 79% growth y-o-y driven by strong growth in mobility and deliveries revenue including contributions by Jaya Grocer.
Gross merchandise value (GMV) grew 30% y-o-y to US$5.1 billion on mobility segment recovery, as countries reopened and international and domestic travel resumed.
For 1QFY2022, adjusted ebitda declined by 9% to negative US$233 million as Grab continued to invest in product and platform development in anticipation of its digibank launches in Singapore in the second half of 2022, followed by Malaysia and Indonesia in 2023.
See also: Trump wins Republican nomination, setting up rematch with Biden
However, adjusted ebitda improved on a q-o-q basis by 19% due to lower incentive spending.
Cash liquidity totalled US$7.7 billion at the end of the 2QFY2022, while its net cash liquidity was US$5.6 billion.
Looking ahead, Grab says it is focused on accelerating its path to profitability, says group CEO and cofounder Anthony Tan. “We will get there by doubling down on product innovation that increases user engagement and reduces our cost-to-serve and focusing on growing high quality transactions on our platform,” he adds.
Grab will focus on increasing high quality GMV transactions, optimising its fixed cost base and reducing its incentive spend in order to drive sustainable growth as well as an improved profitability profile for its segments. The focus on increasing high quality GMV transactions will come with the trade off of slower GMV growth, it notes.
The company is pulling forward its core food deliveries and overall deliveries segment breakeven timelines by one quarter and two quarters respectively to the first quarter of 2023 and second quarter of 2023.
It also expects its revenue for 2022 to come in between US$1.25 billion to US$1.3 billion, at the higher end of its previously announced guidance range of US$1.2 billion to US$1.3 billion.
Shares in Grab closed 13 US cents higher or 3.75% up on Aug 24 at US$3.60.
