Core Insights - Grab is viewed as a promising stock, with a strong focus on business analysis, fundamental analysis, valuation, and long-term growth in sectors like AI, fintech, finance, and tech [1] Company Analysis - The company operates in a competitive landscape, particularly in Indonesia, where it competes with GoTo [1] - Grab's business model and earnings performance are key areas of focus for analysis [1] Investment Strategy - The analysis aims to provide clear, unbiased insights into Grab's strengths, risks, and valuation to assist investors in forming their own opinions and strategies [1]

Group 1 - U.S. markets have faced significant volatility, making international growth stocks a favorable investment, with Grab (GRAB) notably avoiding the downturn experienced by U.S. peers like Lyft [1] - The analyst has extensive experience in technology sectors, having worked on Wall Street and in Silicon Valley, and has been involved with seed-round startups, indicating a strong understanding of current industry trends [1] Group 2 - The article emphasizes the importance of international growth stocks in the current market environment, suggesting that companies like Grab may present better investment opportunities compared to their U.S. counterparts [1]

In this video, I will go over Grab's (GRAB 2.30%) first-quarter earnings report. Watch the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of April 29, 2025. The video was published on April 30, 2025. ...

Financial Data and Key Metrics Changes - In Q1 2025, Grab achieved a 17% year-on-year growth in on-demand GMV and recorded another all-time high in monthly transacting users, leading to record revenues [5][6] - The trailing twelve-month adjusted free cash flow expanded to $157 million, and the adjusted EBITDA outlook for the full year 2025 was raised to $460 million to $480 million from a previous range of $440 million to $470 million [6][5] Business Line Data and Key Metrics Changes - The delivery segment continued to grow, with monthly transacting users increasing sequentially, particularly driven by strong performance from Grab Mart [20][54] - The number of transactions on the platform increased by 19% year-on-year, indicating higher engagement [36] Market Data and Key Metrics Changes - The company noted that it has not seen any signs of consumer weakness despite macroeconomic uncertainties, particularly in Indonesia, where it outperformed its closest competitor [54][55] - The direct marketing costs in Indonesia declined by 12% quarter-on-quarter, contributing to improved adjusted EBITDA as a percentage of GMV [55] Company Strategy and Development Direction - Grab aims to position itself as a countercyclical company, focusing on improving reliability and affordability in its offerings to drive user growth and retention [5][6] - The company is leveraging AI to enhance user and partner services, with a focus on affordability and efficiency in operations [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining growth momentum despite potential macroeconomic headwinds, citing strong performance in Q1 and expectations for continued demand growth [6][36] - The company is closely monitoring the macro environment but remains optimistic about its ability to execute its growth strategy [33][39] Other Important Information - Grab's FinTech business is expected to see an increase in lending to consumers, with a focus on prudent growth amid macroeconomic uncertainties [108] - The company is exploring opportunities for value-added acquisitions to enhance its ecosystem [56] Q&A Session Summary Question: Changes in consumer behavior amid weakening macros - Management has not observed any signs of consumer weakness and expects a rebound in growth rates across mobility and deliveries in Q2 [20][21] Question: Confidence in higher EBITDA guidance - The company is confident due to strong Q1 performance, with demand remaining robust despite seasonal challenges [35][36] Question: Plans if demand softens - Management indicated they would monitor the situation closely and may consider promotions to stimulate demand if necessary [33] Question: Industry consolidation in delivery - Management noted ongoing consolidation in the industry but emphasized their focus on growing their delivery segment, which remains underpenetrated [51][52] Question: Performance in Indonesia compared to competitors - Grab outperformed its closest competitor in Indonesia, with strong growth in deliveries and a decline in direct marketing costs [54][55] Question: Margin drivers for deliveries - The margin improvement in deliveries was attributed to product mix and stable incentives, with Grab Mart growing faster than other delivery segments [86][87] Question: FinTech loan book growth and credit quality - The loan book grew 5% to 6% quarter-on-quarter, with stable non-performing loans, and management is monitoring credit quality closely [92][94] Question: Autonomous vehicle partnerships - Grab is exploring partnerships in the autonomous vehicle space, aiming to be at the forefront of this technology [98][99]

Financial Data and Key Metrics Changes - The company achieved a 17% year-on-year growth in on-demand GMV and recorded another quarter of record revenues, with a trailing twelve-month adjusted free cash flow expanding to $157 million [5][6] - Adjusted EBITDA outlook for the full year 2025 was raised to $460 million to $480 million from a previous range of $440 million to $470 million [6] Business Line Data and Key Metrics Changes - Monthly transacting users reached a record high, contributing to the overall revenue growth [5] - Delivery MTUs continued to grow sequentially, particularly with strong performance from Grab Mart [20][54] Market Data and Key Metrics Changes - The company noted no signs of consumer weakness despite macroeconomic uncertainties, with demand remaining strong in April [20][36] - The Indonesian market outperformed its closest competitor, with delivery MTUs growing sequentially [54] Company Strategy and Development Direction - The company aims to position itself as a countercyclical entity, focusing on reliability and affordability to drive user growth and retention [5][6] - New product initiatives, including AI-driven services, are expected to enhance operational performance without compromising margins [22][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining growth momentum despite potential macroeconomic headwinds, citing strong performance in Q1 and expectations for continued demand [6][36] - The company is closely monitoring the macro environment but remains optimistic about its ability to navigate challenges [33][39] Other Important Information - The company is focusing on enhancing its ecosystem through affordable products and viral initiatives to increase user engagement [26][41] - The FinTech segment is expected to see growth in lending to consumers, with a focus on prudent credit management [108][111] Q&A Session Summary Question: Changes in consumer behavior amid weakening macros - Management has not observed any signs of consumer weakness and expects a rebound in growth rates across mobility and deliveries in Q2 [20][21] Question: Confidence in higher EBITDA guidance - The company is confident due to strong Q1 performance, with demand remaining robust and cost optimization efforts in place [33][36] Question: Plans if demand softens - Management indicated they would monitor the situation closely and may consider promotions to stimulate demand if necessary [33] Question: Industry consolidation in delivery - The company believes there is still room for growth in the delivery segment despite ongoing consolidation in the industry [48][51] Question: Performance in Indonesia compared to competitors - The company outperformed its closest competitor in Indonesia, with strong growth in deliveries and a decline in direct marketing costs [54][55] Question: Thoughts on AV partnerships - The company is excited about the potential of autonomous vehicles and is actively exploring partnerships, though timelines for pilot deployments are not yet established [97][99] Question: Differences in FinTech models - The company focuses on supporting partners with credit underwriting advantages, which helps maintain stable NPLs [108][111] Question: Monetization of dine-out discovery - The company is enhancing dine-out discovery capabilities, which is expected to tap into a larger market and generate advertising revenue in the future [112][115]

April 2025 Disclaimer Non-IFRS Financial Measures This document and the investor webcast include references to non-IFRS financial measures, which include: Adjusted EBITDA, Segment Adjusted EBITDA, Segment Adjusted EBITDA margin, Total Segment Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash Flow, cash liquidity and net cash liquidity. Grab uses Adjusted EBITDA, Segment Adjusted EBITDA, Segment Adjusted EBITDA margin, Total Segment Adjusted EBITDA, and Adjusted EBITDA margin for financial and oper ...

Group 1 - Grab Holdings Limited's stock closed at $4.79, reflecting a +0.63% increase from the previous day, outperforming the S&P 500 which gained 0.58% [1] - Over the past month, Grab's shares have increased by 5.08%, while the Computer and Technology sector gained 0.6% and the S&P 500 lost 0.84% [1] Group 2 - The upcoming earnings report for Grab is expected to show an EPS of $0.02, representing a 166.67% increase year-over-year, with projected quarterly revenue of $759.27 million, up 16.27% from the previous year [2] - For the full year, earnings are projected at $0.04 per share and revenue at $3.32 billion, indicating increases of +233.33% and +18.59% respectively from the prior year [3] Group 3 - Recent changes in analyst estimates for Grab Holdings Limited are important as they reflect near-term business trends, with positive revisions indicating analyst optimism about the company's profitability [3][4] - The Zacks Rank system, which assesses estimate changes, currently ranks Grab Holdings Limited at 3 (Hold), with a recent consensus EPS projection moving 14.29% lower [5] Group 4 - Grab Holdings Limited has a Forward P/E ratio of 119, significantly higher than the industry average of 25.98, indicating a premium valuation [6] - The Internet - Software industry, to which Grab belongs, has a Zacks Industry Rank of 143, placing it in the bottom 43% of over 250 industries [6][7]

Grab Holdings Limited (GRAB) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Shares of this company have returned -2.5% over the past month versus the Zacks S&P 500 composite's -4.8% change. The Zacks Internet - Software industry, to which Grab belongs, has lost 9.1% over this period. Now the key question is: Where could the stock be headed in the near term?Althoug ...

Group 1 - Grab Holdings Limited (GRAB) closed at $3.98, down 1.73% from the previous day, underperforming the S&P 500's gain of 0.79% [1] - Over the past month, shares of Grab have decreased by 7.95%, while the Computer and Technology sector and the S&P 500 have lost 4.81% and 3.56%, respectively [1] Group 2 - Grab is expected to report an EPS of $0.02, representing a growth of 166.67% year-over-year, with a projected revenue of $758.22 million, reflecting a 16.11% increase from the same quarter last year [2] - For the entire year, the Zacks Consensus Estimates forecast earnings of $0.04 per share and revenue of $3.33 billion, indicating increases of 233.33% and 19.05% compared to the previous year [3] Group 3 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Grab Holdings Limited at 3 (Hold) [5] - The Zacks Consensus EPS estimate has decreased by 7.14% in the past month [5] Group 4 - Grab Holdings Limited has a Forward P/E ratio of 93.46, significantly higher than the industry average Forward P/E of 25.02 [6] - The Internet - Software industry, to which Grab belongs, has a Zacks Industry Rank of 91, placing it in the top 37% of over 250 industries [6]

Core Insights - Grab Holdings Limited achieved its strongest quarter ever, with a 20% year-over-year increase in gross merchandise value (GMV), indicating a strategic shift towards affordability-driven growth [1] Company Performance - The company reported a significant 20% year-over-year surge in GMV, showcasing its ability to adapt and thrive in a competitive market [1] - The focus on affordability has enhanced the stickiness of its ecosystem, contributing to sustained user engagement and growth [1] Leadership & Management - The management team has a proven track record in scaling businesses, emphasizing smart capital allocation and insider ownership [1] - Consistent revenue growth and credible guidance from leadership have bolstered investor confidence [1] Market Positioning - Grab possesses a strong technology moat and first-mover advantage, which are critical for maintaining its competitive edge [1] - The company benefits from network effects that drive exponential growth, particularly in high-growth industries [1] Financial Health - Grab demonstrates sustainable revenue growth with efficient cash flow management, ensuring long-term viability [1] - The company maintains a strong balance sheet, providing a runway for future growth while avoiding excessive dilution [1] Investment Methodology - The investment strategy focuses on identifying high-conviction opportunities with a balanced portfolio approach, including core positions, growth bets, and speculative investments [1]