Singapore-based super app Grab announced Thursday that its revenue surged 143 percent year on year to $382 million in the third quarter ended September 30, driven by strong growth in mobility and deliveries revenue.

The company said in a statement it has achieved segment adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) breakeven for overall deliveries and core food deliveries.

The company has revised FY2022 revenue guidance to $1.32 billion to $1.35 billion, up from $1.25 billion to $1.30 billion.

It has also revised second half adjusted EBITDA guidance to negative $315 million, $65 million improvement from negative $380 million.

“Our third-quarter results demonstrate our ability to drive growth and profitability in tandem. We achieved core food deliveries and overall deliveries segment-adjusted EBITDA breakeven ahead of guidance while narrowing our overall loss for the period significantly,” said Anthony Tan, Group Chief Executive Officer and Co-Founder of Grab.

“We accomplished this by staying laser-focused on our cost structure and incentives, while innovating on services that increase synergies within our superapp ecosystem to promote transaction frequency, user retention and engagement,

“We are confident that we have a strong foundation to continue to scale our business sustainably,” he added.

The group’s total gross merchandise value (GMV) grew 26 percent year on year to $5.1 billion, primarily due to a strong recovery in its mobility segment and continued growth in deliveries.

Its loss for the quarter was $342 million, a 65 percent improvement year on year, primarily due to the elimination of the non-cash interest expense of Grab’s convertible redeemable preference shares that converted to ordinary shares in December 2021.

Its loss for the quarter included a $42 million non-cash expense from fair value changes on investments, and $90 million in non-cash stock-based compensation expense.

Its adjusted EBITDA was negative $161 million, an improvement of 24 percent, compared to negative $212 million for the same period last year as it continued to grow GMV and optimize incentive spend as a percentage of GMV across our business.

Revenue for deliveries recorded strong growth, up 250 percent year on year to $171 million primarily driven by our disciplined approach to reducing incentives as a percentage of GMV as it focuses on driving higher quality GMV transactions, and contributions from Jaya Grocer.

GMV for deliveries was up 5 percent year on year, supported by a year on year increase in million of users (MTUs).

Deliveries segment adjusted EBITDA turned positive for the first time, three quarters ahead of its previous guidance primarily due to optimization of its incentive spend, and contributions from Jaya Grocer.

Food Delivery also turned adjusted EBITDA positive in the third quarter of 2022, two quarters ahead of its previous guidance.

Meanwhile, revenue for mobility recorded strong growth, up 101 percent year on year, primarily driven by the strong demand recovery following the easing of COVID-19 restrictions and its efforts to improve active driver supply across the region.

Mobility GMV was up 105 percent year on year, as demand remained strong.

Mobility segment adjusted EBITDA as a percentage of GMV improved by 41 basis points to 12.5 percent of GMV, compared to 12 percent in the same period last year.

During the quarter, the firm continued to streamline and expedite the onboarding process across countries to enable drivers access to more leasing vehicles.

“We are pleased to report a strong third quarter that reflects our accelerated path to profitability. Despite foreign currency translation headwinds and normalizing food delivery demand, our revenue increased 143 percent year-over-year, with incentive spend as a percentage of GMV reduced substantively to 9.4 percent, down from 11.4 percent for the same period last year,” said Peter Oey, Chief Financial Officer of Grab.

“In the quarters ahead, we will continue to focus on cash preservation and cost optimization as we execute on our plans to grow sustainably and drive towards our expectations of 45 percent to 55 percent year on year revenue growth in 2023 on a constant currency basis,” he added.

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