Grab Holdings Ltd. (Singapore) Q1 FY2025 earnings call

• Anthony Tan noted strong first quarter results despite seasonal impacts, with on-demand GMV growth, record monthly transacting users, and revenues. The company harnessed ecosystem scale for efficiencies and maintained cost discipline, achieving 13th consecutive quarter of adjusted EBITDA improvement. - Alex Hungate discussed no signs of consumer weakness yet, monitoring closely, and trends in April. He also talked about new products from GrabX leveraging AI for user and partner centric services, with no anticipated margin weakness from these products. - Peter Oey highlighted Q1 performance with strong on-demand GMV, monthly transacting users, and revenue growth, and discussed cost optimization and confidence in EBITDA guidance. - Alex Hungate elaborated on Indonesia business outperforming competitors, product-led approach, and organic growth in deliveries, along with examples of acquisitions bolstering the ecosystem.

Grab achieved 17% year-on-year growth in on-demand GMV and set another record for monthly transacting users. The company achieved its 13th consecutive quarter of group adjusted EBITDA improvement, with trailing 12 months adjusted free cash flow expanding to $157 million. However, specific revenue contribution percentages for product segments were not detailed in the transcript.

• Anthony Tan reiterated expectations to maintain on-demand GMV and revenue growth momentum compared to 2024. - Raised adjusted EBITDA outlook for full year 2025 to $460 million to $480 million from $440 million to $470 million previously, driven by strong first quarter performance and disciplined cost stance.

• Global macroeconomic uncertainty as a risk factor. - Potential impacts of tariffs and competition consolidation in the delivery industry, such as observed consolidations like foodpanda shutting down in Thailand and Deliveroo looking to sell to DoorDash.

Q: Congratulations for the great set of results. Two questions: on macro and consumer behavior in Indonesia, resilience of Grab, and positioning to be more counter cyclical; and on new products from GrabX driving operational performance and margin weakness.

A: Alex Hungate said no signs of consumer weakness yet, monitoring closely, and trends in April. On new products, they leverage AI for affordability, no anticipated margin loss as products like Shared Saver and GrabFood for One are cost-effective and amortize costs without extra expense.

Q: On guidance, reasons for confidence in profitability improvement, cost optimizations from AI, and plans if demand softens.

A: Peter Oey mentioned strong Q1 performance with high on-demand GMV, monthly transacting users, and revenue growth. Cost structure optimized, and if demand softens, they rely on product-led growth and AI-driven fine-tuning of promotions and incentives.

Q: On delivery industry consolidation in ASEAN and Indonesia business performance vs competitor, and capital allocation for M&A.

A: Peter Oey said hard to predict consolidation, focusing on growing delivery segment. Alex Hungate confirmed Indonesia business outperformed competitor, and they look opportunistically for value-add acquisitions.