Grab Holdings Limited Q3 FY2025 earnings call

• Growth was a key standout with monthly transacting users reaching 48 million, up nearly 6 million year-over-year.
• On-demand GMV grew 24% year-on-year, with 20% on a constant currency basis.
• Group adjusted EBITDA rose 51% year-on-year to $136 million, 15th consecutive quarter of sequential profitability improvement.
• Adjusted free cash flow improved to $283 million trailing 12-month, up $185 million year-on-year.
• Focus on accessibility, affordability, and reliability enabled growth for driver and merchant partners, expanded marketplace, and deepened user engagement.
• In Indonesia, strong performance with product-led growth, including GrabBike Saver, GrabCar Saver, and GrabMart growth.
• GrabUnlimited users grew 14% year-on-year to an all-time high, representing over 20% of delivery MTU base.
• AV investments as part of long-term strategy to lead adoption in Southeast Asia, with partnerships like WeRide and May Mobility.

The quarter saw on-demand GMV grow 24% year-on-year (20% constant currency), driven by a 6 million year-over-year increase in monthly transacting users to 48 million. Group adjusted EBITDA rose 51% year-on-year to $136 million, marking the 15th consecutive quarter of sequential profitability improvement. Adjusted free cash flow improved by $185 million year-on-year to $283 million on a trailing 12-month basis. Both Mobility and Delivery segments are well on track to exit 2025 at record GMV levels. The Delivery segment saw growth in areas like GrabMart, with it growing 1.5x faster than the food delivery segment, and the Mobility segment benefited from products like GrabBike Saver and GrabCar Saver in Indonesia.

• Raised EBITDA guidance to $490 million to $500 million for full year 2025.
• Expect to exit 2025 on a high note with Mobility and Delivery segments on track to record GMV levels.
• Fourth quarter expected to see sequential growth in on-demand GMV.
• Confident in driving sustainable long-term value with AI unlocking growth and efficiency frontiers.

Q: On the competitive landscape, especially in Indonesia?

A: Alex Hungate discussed strong performance in Indonesia, with product-led growth driving MTU increases in deliveries and mobility, including GrabBike Saver, GrabCar Saver, and GrabMart growth. High-value services like GrabExecutive and priority delivery also growing.

Q: On guidance?

A: Peter Oey talked about top-line growth, with deliveries growing 26%, mobility 20%, financial services revenue 40%, and loan book at all-time high. Cost discipline with regional corporate costs up 8% YOY and 150 basis points operating leverage improvement. Raised EBITDA guidance to $490-$500 million for full year 2025.

Q: On MTU growth and demographics?

A: Alex Hungate said on-demand MTUs grew 14% YOY, daily transactions grew faster, with Saver deliveries bringing in nearly 1/3 of new delivery MTUs. Growth skews to younger customers for Saver products, with GMV per MTU up 7% YOY.

Q: On balance sheet and macro environment?

A: Peter Oey discussed capital allocation to organic growth, loan book with $3.5 billion annualized dispersal in Q3, up 56% YOY. M&A with high bar, including AV investments. Anthony Tan noted positive macro events in Southeast Asia, no broad-based consumption slowdown, and strategy is countercyclical.

Q: On GrabMart business and AVs?

A: Alex Hungate talked about GrabMart growing 1.5x faster than food delivery, experimenting with quick commerce models. Anthony Tan discussed AV investments as part of long-term strategy, focusing on collaboration with regulators and upscaling driver partners.

Q: On consumer incentives and advertising?

A: Alex Hungate said consumer incentives stable, with slight adjustments due to demand. Ads segment seeing increased active advertisers and average spend growth, with continued penetration expected.

Q: On food margins and in-store monetization?

A: Ping Yeow Tan discussed deliveries as a portfolio play with improving margins, and no in-store monetization outside of Jaya Grocer experiments, focusing on portfolio optimization and cross-selling.