Grab (US:GRAB)2024-02-21 16:00Financial Performance - Q4 2023 revenue grew 30% year-over-year to $653 million, driven by growth across all segments and reduced incentives[3] - Q4 2023 profit for the period was $11 million, a significant improvement from a net loss of $391 million in the prior year[8] - Full year 2023 revenue reached $2,359 million, a 65% increase year-over-year, exceeding guidance[12] - Total revenue for the year ended December 31, 2023, was $2,359 million, up 64.5% from $1,433 million in 2022[38] - Adjusted EBITDA for Q4 2023 improved by $146 million year-over-year to $35 million, marking the eighth consecutive quarter of improvements[3] - The company achieved a Total Segment Adjusted EBITDA of $228 million for the three months ended December 31, 2023, compared to $112 million in the same period of 2022, reflecting a 103.6% increase[29] Gross Merchandise Volume (GMV) - Total GMV for Q4 2023 increased by 9% year-over-year to $5,441 million, with On-Demand GMV growing 18% year-over-year[4] - Full year 2023 GMV grew 5% year-over-year to $20,983 million, with On-Demand GMV increasing by 12%[12] - Mobility GMV rose 28% YoY in Q4 2023, with a full year growth of 32% YoY[16] Segment Performance - Deliveries revenue for Q4 2023 was $321 million, up 20% year-over-year, with segment adjusted EBITDA expanding to 3.6% of GMV[14] - Mobility revenues increased by 26% YoY in Q4 2023, reaching a total growth of 36% YoY for the full year 2023[16] - Financial Services revenue doubled to $56 million in Q4 2023, representing a 159% YoY increase for the full year 2023[18] - Revenue from Enterprise and New Initiatives grew 124% YoY in Q4 2023, driven by increased contributions from Advertising[19] - Segment adjusted EBITDA for Financial Services improved by 29% YoY for the full year 2023, despite a negative adjusted EBITDA of $81 million in Q4 2023[18] Cash and Liquidity - Cash liquidity totaled $6.0 billion at the end of Q4 2023, with net cash liquidity remaining stable at $5.2 billion[8] - The company’s cash and cash equivalents increased to $3,138 million as of December 31, 2023, up from $1,952 million in 2022[41] - The cash and cash equivalents at the end of the period reached $3.14 billion, up from $1.95 billion at the end of Q4 2022[44] Shareholder Actions - The company announced a share repurchase program of up to $500 million and plans to repay the outstanding balance of its Term Loan B[2] - Grab's Board of Directors authorized a share repurchase program of up to $500 million for Class A ordinary shares[22] Future Outlook - The company expects FY 2024 revenue guidance of $2.70 billion to $2.75 billion, representing a 14% to 17% year-over-year growth[13] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[45] - The company plans to discontinue GMV reporting for Financial Services starting Q1 2024, focusing on ecosystem transactions and lending[21] User Engagement and Operations - The monthly active driver supply increased by 11% YoY in Q4 2023, while earnings per transit hour for driver-partners rose by 14% YoY[16] - Monthly Transacting Users (MTUs) have been expanded to include offline transactions, enhancing user engagement metrics[34] Other Financial Metrics - Free Cash Flow for the year ended December 31, 2023, was $(54) million, an improvement from $(932) million in 2022[30] - The company incurred restructuring costs of $3 million for the three months ended December 31, 2023, down from $4 million in the same period of 2022[29] - The total assets of the company decreased to $8,792 million as of December 31, 2023, from $9,170 million in 2022[41] - The total liabilities increased to $2.32 billion, while total equity and liabilities stood at $8.79 billion[42] Impairments and Costs - The company reported a net impairment loss on financial assets of $21 million for the three months ended December 31, 2023[43] - The company incurred finance costs of $17 million in Q4 2023, down from $54 million in Q4 2022[43] - The net cash used in financing activities was $46 million for the three months ended December 31, 2023, compared to $848 million in the same period last year[44] - The net cash used in operating activities for the three months ended December 31, 2023, was $(26) million, slightly worse than $(23) million in the same period of 2022[30] - The company’s equity-settled share-based payments amounted to $66 million in Q4 2023, a decrease from $90 million in Q4 2022[43]