Grab Holdings Limited Q3 FY2025 earnings call

• Growth was a key highlight with product-led innovations driving a nearly 6 million year-over-year increase in monthly transacting users to 48 million. - Maintained cost discipline and leveraged ecosystem scale to drive profitable growth. - In Indonesia, strong growth in deliveries and mobility was driven by Saver products, high-value services, and GrabMart. - Product-led viral growth, growth in the GrabUnlimited subscription program, and the GrabMore functionality contributing to cross-sell and loyalty.

On-demand GMV achieved a 24% year-on-year increase, with a 20% growth on a constant currency basis. Group adjusted EBITDA rose 51% year-on-year to a new record of $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. Mobility and Delivery segments are on track to end the year at record GMV levels. The financial services loan portfolio is expected to exceed $1 billion.

• Raised full-year adjusted EBITDA guidance to $490 million to $500 million. - Anticipate fourth quarter on-demand GMV to grow sequentially and maintain profitable growth into 2026. - Top-line growth in deliveries (26% clip), mobility (20%), and financial services (40% revenue growth) contributed to the guidance increase.

• Competition in markets like Indonesia could impact growth. - Macro economic uncertainties may affect consumption. - Uncertainties exist in new business model experiments for GrabMart. - Challenges in autonomous vehicle deployment and mainstream adoption in Southeast Asia.

Q: On the competitive landscape, especially in Indonesia?

A: Indonesia is a key market with strong growth, driven by Saver products, high-value services, GrabMart growth, and sequential margin improvement.

Q: Discussion on latest update in guidance?

A: Raised EBITDA guidance to $490 - $500 million due to top-line growth in deliveries, mobility, financial services, and disciplined cost structure.

Q: MTU growth and demographics?

A: On-demand MTUs grew 14%, DTUs faster, Saver deliveries and Saver transport bringing new users, growth at both ends of pricing ladder, GMV per MTU grew 7%.

Q: Use of cash balance and macro environment?

A: Capital allocation for organic growth (loan book, new products), selective M&A (autonomous vehicles), and potential return to shareholders; macro environment in SEA is positive with tourism recovery and no broad-based consumption weakness.

Q: GrabMart business and AVs?

A: GrabMart growing 1.5x faster than food delivery, experimenting with new models; AV investments part of long-term strategy, focusing on collaboration with regulators and upscaling driver partners.

Q: Financial Services segment and risk provisions?

A: Financial services loan dispersal at $3.5 billion run rate, ECLs due to growth, segment adjusted EBITDA improved excluding provisions, learning from underbanked/unbanked customers.

Q: Consumer incentives and advertising?

A: Consumer incentives stable with viral product rollouts, slight increase in driver incentives due to high demand; advertising penetration continuing to increase with more advertisers and higher average spend.

Q: Food margins and in-store monetization?

A: Deliveries margin as portfolio play, improving overall with Grocery/Mart business underpenetrated; no in-store monetization except Jaya portfolio and gray store experiments