Southeast Asia’s super app Grab announced Thursday that its revenue surged 79 percent year on year to a record high of $321 million, driven by strong growth in mobility and deliveries revenue, including contributions from its recently-acquired Malaysian retail chain Jaya Grocer.

Grab said in a statement the group’s loss for the period also narrowed 29 percent year on year to $572 million.

Its gross merchandise value (GMV) grew 30 percent year on year to $5.06 billion, underpinned by a recovery in its mobility segment and continued growth in deliveries.

Its monthly transaction users (MTUs) climbed 12 percent year on year to 32.6 million, while the number of users of more than one service on its platform improved, with 62 percent of MTUs now using two or more services on its platform compared to 56 percent in 2021.

In mobility, its GMV grew 51 percent year on year to $1.04 billion and revenue rose 37 percent year on year to $161 million as ride hailing demand continues to be strong.

Mobility segment achieved adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 12.1 percent for the second quarter, in line with its expected steady state margins of 12 percent.

Grab deliveries segment also registered strong revenue growth, tripling to $134 million compared to the same period a year ago, driven by contributions from Jaya Grocer and a 47 basis points decline in total incentives as a percentage of GMV.

Its GMV was up 19 percent year on year to $2.48 billion, but came in below its guidance range, impacted by foreign exchange currency translation and as dine-out resumption softened food delivery demand. The segment adjusted EBITDA stood at negative $34 million.

“Our second quarter results showed that we can grow sustainably. We delivered strong revenue and GMV growth, while improving our unit economics and strengthening our category leadership position across key segments in the region. Our deliveries segment continued to grow, despite tougher year-on-year comparisons and as dine-out trends moderated food delivery demand,

“Looking ahead, we are laser focused on accelerating our path to profitability. We will get there by doubling down on product innovation that increases user engagement and reduces our cost-to-serve and focusing on growing high quality transactions on our platform,” said Anthony Tan, Group Chief Executive Officer and Co-Founder of Grab.

Meanwhile, Grab Chief Financial Officer Peter Oey said in the quarter, the group took action to streamline its organizational cost structure.

“We optimized our fixed costs, shut unprofitable lines of business and continued to taper incentives as a percentage of GMV. As such, we are pulling forward our breakeven timelines for our core food and overall deliveries segment and narrowing our 2022 revenue guide to the upper end of our previously announced range,

“In the second half, we see slower GMV growth but an improvement in EBITDA compared to the first half due to our cost measures and strategies for growing sustainably,” he added.

Looking ahead, Grab said it is focused on accelerating its path to profitability.

It said it will focus on increasing high quality GMV transactions, optimizing its fixed cost base and reducing our incentive spend in order to drive sustainable growth, and an improved profitability profile for its segments.

According to Grab, the focus on increasing high quality GMV transactions will come with the trade off of slower GMV growth.

Furthermore, it anticipated the continued strength of the U.S. dollar to adversely impact its foreign currency translation by approximately 4 percent in the latter half of the year, and for dine-out trends to continue to moderate food delivery demand in its deliveries segment.

As a result of these factors, it is lowering its GMV growth forecast for the year.

However, it is pulling forward its core food deliveries and its overall deliveries segment break even timelines by one quarter and two quarters, respectively, to the first quarter of 2023 and second quarter of 2023.

It also expects its revenue for 2022 to come in between $1.25 billion to $1.3 billion, at the higher end of our previously announced guidance range of $1.2 billion to $1.3 billion, and for our adjusted EBITDA to improve sequentially, quarter on quarter, in the second half.

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