Grab (GRAB)2024-08-15 15:27Financial Data and Key Metrics Changes - Group revenues in Q2 2024 grew 17% year-on-year, reaching an all-time high of 4.4 billion, or 18% on a constant currency basis [29] - Adjusted EBITDA for the quarter was 81 million from the same period last year [31] - Adjusted free cash flow was 56 million year-on-year [32] Business Line Data and Key Metrics Changes - Mobility revenue increased by 19% year-on-year, with GMV growing 20% or 25% on a constant currency basis [28][29] - Deliveries revenue grew 11% year-on-year, with GMV increasing by 9% or 14% on a constant currency basis [28][29] - Financial services revenue surged 54% year-on-year, driven mainly by lending across GrabFin and GXS Bank [28] Market Data and Key Metrics Changes - Deposits in GXS Bank in Singapore and GX Bank in Malaysia grew over 50% quarter-on-quarter to 2 billion in Q2 2024 [6] Company Strategy and Development Direction - The company aims to leverage its platform scale to drive profitable growth, focusing on product and tech-led strategies [4][5] - A three-pronged approach will be adopted: scaling the ecosystem, being AI-led for growth, and maintaining cost discipline [8][9][10] - The company is committed to delivering a triple bottom line business, emphasizing community welfare and environmental health [10] Management's Comments on Operating Environment and Future Outlook - The macro outlook in Southeast Asia is strong, with positive GDP growth and increasing tourism [39] - Management expects sequential growth in GMV and adjusted EBITDA for both Deliveries and Mobility in the second half of 2024 [42] - The company remains confident in achieving its long-term margin expectations for Mobility and Deliveries [44][56] Other Important Information - The company reported a positive cash inflow from operating activities of 5.6 billion at the end of Q2 2024, reflecting a strong liquidity position [34] Q&A Session Summary Question: Impact of FX weakness on GMV and revenue growth - Management acknowledged that FX weakness impacted headline growth but noted that the U.S. dollar has weakened recently, turning headwinds into tailwinds for Q3 [39] Question: Mobility EBITDA margin dip - Management explained that the dip in Mobility EBITDA margin was expected due to new product rollouts and a shift in product mix, but they anticipate improvement in the coming quarters [43][44] Question: Competitive landscape and incentive spending - Management indicated that competitive activity remains consistent, and the increase in incentive spending was primarily to support new product launches [58][60] Question: Financial services guidance and breakeven timeline - Management reiterated the commitment to breakeven for financial services by the second half of 2026, with positive momentum in the lending business [56]