Southeast Asia superapp Grab Holdings Limited has posted a profit of $11 million in the fourth quarter ended December 31, 2023, compared to a net loss of $391 million in the prior year period.

Grab said in a statement on Thursday that the achievement was primarily due to the improvement in group adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), fair value changes in investments, and lowered share-based compensation expenses.

The profit in the fourth quarter also benefited from the reversal of an accounting accrual no longer required.

The firm’s group adjusted EBITDA was $35 million for the quarter compared to negative $111 million for the same period in 2022 as it continued to grow gross merchandises value (GMV), while improving profitability on a segment adjusted EBITDA basis and lowering our regional corporate costs.

Meanwhile, the group’s revenue grew 30 percent year-over-year to $653 million in the fourth quarter of 2023, attributable to revenue growth across all its segments and further reductions in incentives.

Total GMV climbed 9 percent year on year, primarily attributed to growth in mobility and deliveries GMV, with group monthly transacting users (MTUs) growing 12 percent year on year.

Notably, on-Demand GMV also grew 18 percent year on year.

As for full year, the group reported a narrower losses of $485 million.

Its full year group adjusted EBITDA was negative $22 million, an improvement from negative $793 million in 2022. The EBITDA performed in line with its guidance of negative $25 million to negative $20 million.

Its revenue for the full year surged 65 percent year on year to $2.36 billion, above its guidance of $2.31 billion to $2.33 billion.

The growth was attributed to growth across all its segments, continued incentive optimization and a change in business model for certain delivery offerings in one of its markets.

Its full year GMV increased by 5 percent year on year to $20.98 billion, driven by continued growth in mobility and deliveries.

Its on-demand GMV rose 12 percent year on year to $15.59 billion.

“2023 was a pivotal year for us. We generated over $11 billion of earnings for our partners, achieved strong top-line growth as we exited the year with mobility GMV above pre-COVID levels and deliveries GMV growth re-accelerating, while also reaching adjusted EBITDA profitability in the year,” said Anthony Tan, Group Chief Executive Officer and Co-Founder of Grab.

“We will continue to execute towards sustainable and profitable growth in 2024, as we deepen engagement with our users through affordable and high value offerings, grow our financial services business, while continuing to outserve our driver- and merchant-partners,” he added.

Peter Oey, Chief Financial Officer of Grab, said that the firm reported a strong set of results in the fourth quarter, recording its eighth consecutive quarter of adjusted EBITDA improvements.

“As we execute on our strategies in 2024, we expect to drive continued improvements in adjusted EBITDA and adjusted free cash flow,” he said.

In the medium term, he sees between 100 to 200 basis points of upside to the firm’s segment adjusted EBITDA margins for deliveries, as they continue to drive growth in on-demand GMV and accelerate year-over-year revenue growth rates beyond 2024.

As for FY2024, the firm is aiming a revenue of $2.7 billion to $2.75 billion, which is a year on year increase of 14 percent to 17 percent as compared to FY23.

The firm also projected adjusted EBITDA of $180 million to $200 million in FY24.

“With our robust balance sheet position, we are pleased to announce that our board of directors has authorized our first share repurchase program of up to $500 million and the repayment of the outstanding balance of our term loan B,” Oey said.

Grab delivers first adjusted profitable quarter as topline continues to grow