Grab Holdings Ltd. (Singapore) Q4 FY2024 earnings call

Product and Growth - Fourth quarter was the strongest ever, with on-demand GMV up 20% y-o-y. Launched initiatives like Saver Rides and Priority Deliveries for better affordability and reliability, achieving strong product market fit. - 2024 saw first full year of positive group adjusted EBITDA and adjusted free cash flow. - 2025 expects to maintain on-demand GMV growth momentum, balance to drive adjusted EBITDA and free cash flow expansion while being disciplined with cash. ### Financial Services - Digibank loan products launched recently, growing fast within credit risk appetite; direct costs increase with new launches. - GFin business provides good risk-adjusted returns on capital, comfortably above Grab's own cost of capital. ### Autonomous Vehicles and Tech - Actively watching AV space, excited about long-term opportunity, in active discussions with regulators, pursuing partnerships. - Leaning in on GenAI, e.g., merchant AI assistant saw 24% uplift in ad spend among merchants who engaged. ### Ecosystem - Cross-sold users have average spend 4x higher and frequency uplifts 2.5x higher than single vertical users; retention rate twice as high. - Grocery deliveries growth faster than food delivery for two quarters in a row, penetration still low but intent to grow with partnerships.

Fourth quarter saw on-demand GMV accelerate 20% year-on-year. For the full year, Grab achieved its first full year of positive group adjusted EBITDA of $313 million, coming in at the upper end of upgraded guidance, and positive full year adjusted free cash flow of $136 million, which improved by $370 million year-on-year. Deliveries margin expanded 70 basis points year-on-year, mobility margins remained stable. Financial Services loan book grew to $536 million, revenue reached $74 million.

2025 Outlook - Expect to maintain on-demand GMV growth momentum. - Adjusted EBITDA expected to grow 40%-50% relative to 2024 levels. - Revenue growth forecasted between 19%-22%. - Financial services overall expected to be profitable by second half of 2025, banks overall by fourth quarter of 2025.

Actual results could differ materially due to a number of risks and uncertainties as described in the earnings call, earnings release and Form 20-F and other SEC filings, including market competition, policy changes, and technological developments.

Q: Firstly, better understanding about product mix shift and impact on margins; secondly, on FinTech loan book growth and EBITDA losses.

A: On product mix, will focus on high end and affordability balance, deliveries margins to be 4% plus long-term, mobility margins 9% plus; on FinTech, Digibank loan products launched recently with direct cost increase, GFin provides good risk-adjusted returns.

Q: Management's guidance philosophy entering 2025 and capital allocation between initiatives.

A: Guidance philosophy is to bake in potential uncertainties at start of year, outlook improves as year progresses; on capital allocation, organic growth first, high bar on M&As, excess capital returned to shareholders.

Q: Updates on cross-selling of delivery business and AI enhancing cost optimization.

A: Cross-sold users have better uplifts, average spend 4x higher, frequency 2.5x higher; AI used in merchant AI assistant to boost ad spend and sales, actively using GenAI for personalized solutions.

Q: MTU net adds source and consumer incentives.

A: MTU growth driven by affordable products and high-value users, incentives deliberate for product adoption, mobility and deliveries incentives move q-o-q; MTU product holdings of 2 or more still over 2/3.

Q: EVs impact on margins and robotaxi in Southeast Asia.

A: EVs reduce drivers' running costs, help improve affordability and TAM share; robotaxi has unit economics improving over time, will be introduced safely with hybrid fleet complementing human fleet.

Q: Singapore tax rebate impact and revenue contribution.

A: Assessing Singapore budget, tax rebates benefit small merchants, Singapore is a thriving economy with strong business growth, Singapore's revenue contribution to Grab is part of a thriving economy.