Singapore-based super app Grab Holdings Limited has reported lower losses in the second quarter amid higher revenue.

Grab said in a statement on Wednesday that the losses for the the group were $148 million in the quarter, a 74 percent improvement year on year, primarily due to the improvement in group adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and a reduction in fair value losses on investments, net interest expenses, and share-based compensation expenses.

The firm’s loss for the quarter included $65 million in non-cash share-based compensation expenses and a $50 million restructuring charge that largely consisted of costs from the restructuring exercise it conducted in June 2023.

Its group adjusted EBITDA was negative $20 million for the quarter, an improvement of 92 percent compared to negative $233 million for the same period in 2022 as it continued to grow GMV and revenue while improving profitability on a segment adjusted EBITDA basis and lowering regional corporate costs.

Meanwhile, the firm’s revenue grew 77 percent year on year to $567 million in the second quarter of 2023, attributed to growth across all its segments, continued incentive optimization and a change in business model for certain delivery offerings in one of our markets1.

Its total gross merchandise volume (GMV) grew 4 percent year on year, attributed to the growth in mobility and deliveries GMV.

The firm’s total incentives were 8 percent of GMV in the second quarter, compared to 10.4 percent in the same period in 2022, demonstrating its continued focus on improving the health and efficiency of its marketplace.

The group’s deliveries revenue grew 118 percent year on year to $292 million in the second quarter from $134 million in the same period in 2022.

The strong growth was primarily attributed to a reduction in incentives, GMV growth, and a change in business model of certain deliveries offerings in one of its markets.

Deliveries segment adjusted EBITDA as a percentage of GMV expanded to an all time high of 2.7 percent in the second quarter of 2023 from 2.6 percent in the first quarter of 2023 and negative 1.4 percent in the second quarter of 2022, amid robust GMV growth, further optimization of incentives spend and increased operational efficiencies.

The group’s mobility revenues continued to grow strongly, rising 29 percent year on year in the second quarter.

The increase was mainly attributed to our efforts to improve supply across the region, which enabled us to capture the recovery in tourism ride-hailing demand, and the growth in domestic demand.

Mobility segment adjusted EBITDA as a percentage of GMV was 12.4 percent in the second quarter of 2023, increasing from 12.1 percent in the same period last year, and in line with its steady-state target of 12 percent.

Revenue for Grab’s financial services grew 223 percent year on year to $40 million in the second quarter of 2023.

The growth was driven primarily by improved monetization of its payments business and higher contributions from other services such as lending.

The segment adjusted EBITDA for the quarter improved by 35 percent year on year to negative $75 million, as an increase in Digibank-related costs was more than offset by lowered spend in GrabFin.

“We had a strong set of results for the second quarter. Deliveries GMV grew year-over-year (YoY) to hit record-highs, supported by our continued push on key affordability initiatives and an expanding GrabUnlimited subscriber base,

“More people are using Grab today than ever before, as we achieved our highest Monthly Transacting Users to date,” said Anthony Tan, Group Chief Executive Officer and Co-Founder of Grab.

Looking ahead, he said the firm will focus on making its platform more valuable to its driver- and merchant-partners, by providing them with tools and services to become more productive and engaged.

He said the firm’s aim is to continue fostering a flourishing ecosystem that enables them to thrive, while delivering sustainable growth for Grab.

Grab Chief Financial Officer Peter Oey said that the firm continued on its path to profitability, with group revenues growing 77 percent year on year, while delivering its sixth consecutive quarter of group adjusted EBITDA improvement.

“Against the backdrop of a strong first half along with our focus on driving cost efficiencies and maintaining a strong balance sheet, we are revising our group adjusted EBITDA guidance range up by $165 million to $195 million, to $(30) million to $(40) million for the full year 2023,

“We are on track to achieve group adjusted EBITDA breakeven in the third quarter of 2023, ahead of our prior target of the fourth quarter of 2023,” he said.

The group also maintained its revenue guidance of $2.2 billion to $2.3 billion for 2023.

Founded in 2012, Grab is a superapp in Southeast Asia, operating across the deliveries, mobility and digital financial services sectors.

Serving over 500 cities in eight Southeast Asian countries, Grab enables users to order food or groceries, send packages, hail a ride or taxi, pay for online purchases or access services such as lending and insurance, all through a single app.

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