Grab (GRAB)2024-11-12 04:38Financial Data and Key Metrics Changes - Group revenues in Q2 2024 grew 17% year-on-year or 23% on a constant currency basis, reaching an all-time high of 4.4 billion [12] - Adjusted EBITDA for the quarter was 81 million from the same period last year [13] - Adjusted free cash flow was 56 million year-on-year [14] Business Line Data and Key Metrics Changes - Mobility revenue increased by 19% year-on-year or 23% on a constant currency basis, driven by strong growth in mobility MTUs and transactions [12] - Deliveries revenue grew 11% year-on-year or 17% on a constant currency basis, with Deliveriz GMV growing 14% on a concurrency basis [5][12] - Financial services revenue surged 54% year-on-year or 61% on a constant currency basis, primarily from lending across GrabFin and GXS Bank [12] 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 [3] - Monthly active driver supply increased by 13% year-on-year and 5% quarter-on-quarter, with retention rates remaining healthy at 90% [9] Company Strategy and Development Direction - The company is focused on leveraging its platform scale to drive profitable growth, with a commitment to product and tech-led strategies [2] - A three-pronged approach will be adopted to scale the ecosystem, emphasizing affordability, AI-led growth, and cost discipline [4] - The company aims to achieve long-term segment adjusted EBITDA margin guidance of 9% plus for mobility and 4% plus for deliveries [13][24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the macro outlook for Southeast Asia, with expectations of strong demand and tourism recovery [18] - The company anticipates sequential growth in on-demand GMV and group-adjusted EBITDA for the second half of 2024 [15] - Management remains committed to achieving positive adjusted free cash flow for the full year of 2024 [15] Other Important Information - The company activated a Calamity Assistance Program to support partners affected by Typhoon Gemi [5] - The latest ESG report was published, highlighting the company's commitment to community welfare and environmental health [4] Q&A Session Summary Question: Impact of FX weakness on GMV and revenue growth - Management acknowledged that FX weakness affected headline growth but noted that the U.S. dollar has weakened recently, turning headwinds into tailwinds for Q3 [17] Question: Explanation for dip in mobility EBITDA margin - Management explained that the dip was expected due to strategic investments in affordability and reliability, with a long-term view of improving margins [19] Question: Potential disruptions from short video platforms - Management expressed confidence that Grab's in-app experience and scale advantages would mitigate potential disruptions from social media partnerships [20] Question: Update on premium offerings and TransCap acquisition - Management highlighted the growth potential of premium offerings and confirmed ongoing efforts to enhance supply in Singapore despite the TransCap acquisition not being cleared [22][24]