Grab Holdings Limited Reports Financial Results for Q3 2024
Grab Holdings Limited (NASDAQ:GRAB) has released its unaudited financial results for the third quarter ended September 30, 2024, indicating a strong performance across its business segments with significant growth and improvements in profitability metrics.
Key Financial Metrics:
| Metric | Q3 2024 | YoY Change | Consensus Estimate | Comparison to Consensus |
|---|---|---|---|---|
| Total Revenue | $716 million | +17% | $692.87 million | Exceeded by $23.13 million |
| Adjusted EBITDA | $90 million | +$62 million | N/A | N/A |
| Profit for the Quarter | $15 million | +$114 million | N/A | N/A |
Interpretation: Grab's Q3 revenue surpassed consensus estimates, reflecting robust year-over-year growth of 17% and progress in profitability shown by a positive profit of $15 million, a notable improvement from the previous year.
Revenue Performance by Segment:
| Segment | Revenue | YoY Change |
|---|---|---|
| Deliveries | $380 million | +13% |
| Financial Services | $64 million | +34% |
| Others | $1 million | N/A |
Interpretation: The Deliveries and Financial Services segments showed significant growth, with Deliveries increasing by 13% and Financial Services by 34% year-over-year. This demonstrates effective execution and strong demand within these sectors.
Key Developments and Operational Highlights:
- On-Demand GMV grew 15% year-over-year to $4.7 billion.
- Operating Cash Flow was $338 million.
- The company recorded an adjusted free cash flow of $76 million on a trailing 12-month basis.
- Total incentives for Q3 were $462 million, with optimizations reducing On-Demand incentives to 9.8% of GMV.
Comments from Company Officers:
Anthony Tan, Group CEO, highlighted the acceleration in On-Demand GMV growth and an increase in Monthly Transacting Users to 42 million. Peter Oey, CFO, emphasized improved profitability and cash flow metrics, noting the continued trajectory of revenue and adjusted EBITDA growth.
Dividends and Share Repurchase Program:
Grab did not announce any dividends but repurchased 17.7 million shares totaling $58.2 million during the third quarter. Cumulatively, 57 million shares worth $189 million have been repurchased.
Forward Guidance:
Grab expects sequential growth in On-Demand GMV for the fourth quarter and has raised its full-year 2024 Group Revenue and Adjusted EBITDA outlook.
Stock Price Movement:
Following the earnings release, Grab's stock saw an increase of 3.55%, reflecting investor confidence in the company's trajectory.
Overall, Grab's Q3 2024 results indicate strong growth across core business segments and an ongoing effort to optimize operations and enhance shareholder value through strategic investments.
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