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]

Group 1 - Grab is reportedly seeking to raise up to $2 billion in a bridge loan to acquire rival GoTo, with plans for a bond or equity takeout following the loan [1][2] - The potential acquisition of GoTo could be valued at over $7 billion, indicating that Grab's capital-raising efforts are progressing after initial hesitations [2] - GoTo's CEO has expressed openness to a merger with Grab, emphasizing the need to consider the implications for shareholders and the company's responsibilities [3] Group 2 - The merger discussions between Grab and GoTo have been ongoing since 2024, although both companies initially denied the negotiations [4] - A combined entity would create significant regulatory scrutiny due to the large market presence of both companies in Southeast Asia, with a combined market value of $23 billion [4] - The food delivery sector is currently facing challenges, as evidenced by Grubhub's recent announcement of a 20% workforce reduction following its acquisition [5]

Company Performance - Grab Holdings (GRAB) shares have appreciated 48.1% in the trailing 12 months, outperforming the Zacks Computer & Technology sector's return of 7% and the Zacks Internet - Software industry's rise of 14.8% [1] - In the fourth quarter of 2024, On-Demand GMV grew 20% year over year, or 19% on a constant-currency basis, reaching $5 billion [3] Strategic Partnerships - Grab has partnered with Amazon Web Services (AWS) to enhance growth in mobility, deliveries, and financial services, selecting AWS as its preferred cloud provider in December 2024 [6][7] - The collaboration with OpenAI aims to leverage advanced AI solutions to improve user experiences, customer support, and enhance GrabMaps with automated data extraction [8][9] Clientele Expansion - Grab's growing clientele includes major players like Amazon, BYD, and OpenAI, with a notable partnership with BYD to introduce up to 50,000 electric vehicles (EVs) to Southeast Asia [8][9] Financial Outlook - Grab expects 2025 revenues between $3.33 billion and $3.40 billion, indicating 19-20% year-over-year growth, with the Zacks Consensus Estimate for 2025 revenues at $3.34 billion, implying a year-over-year increase of 19.57% [11] - The Zacks Consensus Estimate for 2025 earnings is pegged at 5 cents per share, which has decreased by a penny in the past 30 days [11] Valuation Metrics - Grab is trading at a premium with a forward 12-month Price/Sales ratio of 5.36X compared to the industry's 5.08X, indicating a stretched valuation [12] Competitive Landscape - Grab faces intense competition in its deliveries segment from regional players like Foodpanda, ShopeeFood, and Gojek, as well as single-market players such as Deliveroo and Line Man Wongnai [15] - Economic uncertainty in key Southeast Asia markets, driven by inflation and changing consumer behavior, is impacting Grab's financial performance [16]

Group 1 - International stocks are outperforming U.S. stocks in 2025, with European stocks rising nearly 20% since the beginning of the year [1] - The performance of European stocks is attributed to various factors, including economic recovery and investor sentiment [1] - The article highlights the experience of Gary Alexander in covering technology companies and his contributions to industry discussions [1] Group 2 - The article does not provide any specific financial data or metrics related to individual companies or sectors [2][3] - There are no investment recommendations or advice given in the article [2][3] - The article emphasizes the importance of understanding market trends and themes shaping the industry [1]

Group 1 - The article highlights Grab's strong fundamentals, including robust revenue growth, a clear path to profitability, and a solid cash position with almost zero debt [1] - Grab is positioned favorably compared to many SPAC-era companies, indicating potential resilience and growth prospects in the current market environment [1] Group 2 - The analysis emphasizes the importance of fundamental analysis, valuation, and long-term growth potential, particularly in sectors like AI, fintech, and technology [1] - The author has a background in finance and economics, with experience in equity research and financial modeling, which supports the credibility of the analysis presented [1]

Financial Performance and Profitability - The company has incurred net losses each year since inception and may not be able to achieve or sustain profitability[35] - The company incurred net losses of $1.7 billion, $0.5 billion, and $0.2 billion for the years ended December 31, 2022, 2023, and 2024, respectively[49] - The company’s ability to achieve profitability is contingent on reducing partner and consumer incentives relative to commissions and fees received[53] - The company reported that its deliveries, mobility, financial services, and other segments represented 53.4%, 37.4%, 9.1%, and 0.1% of revenue for the year ended December 31, 2024, respectively[165] - Revenue for the year ended December 31, 2023, was $2.4 billion, showing a year-over-year increase of approximately 4.2%[195] Growth and Market Expansion - The company’s growth depends on expanding its driver- and merchant-partner base and increasing consumer usage of its platform[41] - Monthly transacting users grew to 41.3 million for the year ended December 31, 2024, up from 35.5 million in 2023 and 32.7 million in 2022[52] - The company has experienced rapid growth since its inception in 2012, with significant increases in employee headcount, consumer base, and geographic reach[67] - The company is expanding into new business areas, including grocery stores and digital banking, which may increase operational complexity and require substantial resources for effective management[68] - The company aims to grow its platform user base, including driver- and merchant-partners, to enhance its value proposition and operational results[76] Competition and Market Risks - The company faces intense competition across its segments, with competitors potentially offering lower costs or higher quality services[44] - The expiration of non-competition agreements with Uber and Didi could lead to increased competition, impacting market share and pricing strategies[47] - The company is exposed to risks associated with operating in Southeast Asia, including economic and political uncertainties[39] - The company faces risks related to consumer dissatisfaction, which could lead to a decline in the number of users on its platform[79] - The number of driver- and merchant-partners may fluctuate due to various factors, including local regulations and competition from alternative platforms[80] Regulatory and Legal Risks - The company is subject to various legal and regulatory risks, including potential violations of anti-corruption laws[36] - The company faces regulatory risks, including evolving laws related to deliveries, mobility, and financial services, which could impact operations[54] - New regulations in Vietnam and Malaysia may require the company to obtain additional licenses for its mobility and delivery services, potentially affecting operations[59] - The company is subject to various anti-corruption laws and has voluntarily self-reported potential violations, which could have material adverse effects on its operations[69] - The company is subject to increasing regulatory scrutiny and potential sanctions related to its financial services operations, which could adversely affect its business[90] Financial Services and Digital Banking - The company has launched its insurance underwriting business in Singapore in 2024, expanding its financial services offerings[88] - The digital banks have received regulatory approval to commence restricted business activities in Singapore and Malaysia, but full business activities are still pending approval[89] - The company’s financial services business relies significantly on its deliveries and mobility segments, with a need to grow usage outside these areas[91] - The company is obligated to make capital contributions of up to SGD 1.93 billion (approximately $1.4 billion) to the Digital Banking JV, which includes provisions for retained losses[101] - The company is exposed to credit cycle volatility and potential credit losses as its lending business grows, influenced by economic and regulatory changes[89] Operational Challenges and Costs - The company must navigate macroeconomic conditions that could impact discretionary consumer spending and demand for its offerings[40] - The company is investing in upgrading its technology and management systems to support growth and improve operational efficiency[68] - The company has increased platform fees to mitigate higher operating costs arising from new regulations, which may affect its financial condition[74] - The company may incur significant costs in managing legal and regulatory matters, which could impact its financial condition and operational results[108] - The company faces challenges in maintaining interoperability with various devices and operating systems, which is crucial for user engagement[115] Strategic Partnerships and Alliances - The company has entered into strategic alliances, including a partnership with MUFG for digital financial services, which includes exclusivity provisions that may limit growth prospects[99][100] - The company relies on strategic partnerships with financial institutions like Visa and Mastercard for payment processing, which are critical to its operations[131] - The company completed the acquisition of a majority economic interest in Jaya Grocer in January 2022, and subsequently acquired Move It, a motorcycle-hailing application in August 2022, and Chope, a restaurant reservation platform in July 2024[124] Economic and Political Environment - The company is exposed to economic, political, and social risks in Southeast Asia, which could adversely affect its business and financial condition[190] - Ongoing political instability in Myanmar and a more politicized environment in the Philippines may disrupt business activities[191] - The Southeast Asia economy has experienced uneven growth, with potential adverse effects on demand for the company's offerings due to economic downturns[196] - Natural disasters and political instability in Southeast Asia could disrupt operations and negatively impact financial performance[207] Compliance and Governance - The company is subject to scrutiny by government authorities regarding compliance with applicable laws and regulations, which could result in fines or operational restrictions[108] - The company anticipates ongoing costs related to legal and regulatory compliance, which may hinder its growth prospects in certain markets[108] - The company qualifies as a foreign private issuer, exempting it from certain U.S. securities regulations, but risks losing this status if U.S. holders exceed 50% of outstanding voting securities[225][227] - The company may adopt corporate governance practices from the Cayman Islands that differ from NASDAQ standards, potentially affording less protection to shareholders[228]