Grab (NasdaqGS:GRAB) Q3 2025 Earnings Call November 03, 2025 07:00 PM ET Company ParticipantsDouglas Eu - Director of Investor Relations and Strategic FinancePeter Oey - CFOAnthony Tan - CEOAlex Hungate - President and COOConference Call ParticipantsNavin Killa - AnalystJiong Shao - Senior Equity AnalystVenugopal Garre - Senior AnalystAlicia Yap - Equity Research AnalystPang Vit - AnalystWei Fang - AnalystDivya Gangahar - AnalystMark Mahaney - AnalystOperatorLadies and gentlemen, thank you for joining us to ...

Financial Data and Key Metrics Changes - The company reported a 24% year-on-year increase in on-demand GMV, reaching a record adjusted EBITDA of $136 million, which is a 51% increase year-on-year [4][5] - Adjusted free cash flow improved by $185 million year-on-year to $283 million on a trailing 12-month basis [4] - The financial services loan portfolio is expected to exceed $1 billion by the end of 2025 [5] Business Line Data and Key Metrics Changes - Monthly transacting users (MTUs) increased by nearly 6 million year-on-year to 48 million, with on-demand transactions growing 27% [4][18] - The mobility segment grew at a rate of 20%, while the delivery segment saw a growth rate of 26% [11] - Financial services revenue grew by 40%, with loan dispersals reaching an annualized rate of $3.5 billion, up 56% year-on-year [27][45] Market Data and Key Metrics Changes - The company continues to perform strongly in Indonesia, with significant growth in both deliveries and mobility, driven by product-led growth strategies [10][11] - The Grab Mart business is growing at one and a half times the rate of food delivery, indicating strong demand across all markets [37] Company Strategy and Development Direction - The company is focused on building a tech-driven platform for long-term resilience, emphasizing affordability, reliability, and accessibility [5] - There is a strong emphasis on product-led innovations to drive user engagement and loyalty, with a focus on cross-selling between services [20][21] - The company is exploring new business models, including Quick Commerce, to expand its grocery segment [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain profitable growth despite potential macroeconomic challenges, citing a resilient business model [30][31] - The company anticipates strong top-line growth to continue into the fourth quarter, traditionally its strongest quarter [12] - Management highlighted the importance of partnerships with governments to support small businesses and enhance the ecosystem [32] Other Important Information - The company is committed to maintaining a disciplined cost structure, with regional corporate costs increasing only 8% year-on-year [11] - The advertising segment is expected to be a key driver of margin growth in the long run, with a 15% year-on-year increase in active advertisers [54][55] Q&A Session Summary Question: Competitive landscape in Indonesia and growth performance - Management noted strong performance in Indonesia, driven by affordability strategies and product-led growth, with significant increases in MTUs and delivery GMV [10][11] Question: Update on guidance and growth estimates by segment - Management raised EBITDA guidance to $490 million-$500 million for the full year 2025, citing strong top-line growth across segments [12] Question: MTU growth demographics and user profile changes - MTU growth was driven by saver delivery products, with a notable increase in younger users and those from lower-tier cities [19] Question: Growth rate expectations for Q4 and 2026 - Management expects continued strong growth rates, with a focus on sustainable growth and margin improvement [22] Question: Capital allocation and use of cash - The company plans to invest in organic growth, selective M&A, and return excess capital to shareholders [27][29] Question: Financial services segment and risk provisions - The financial services segment is experiencing strong growth, with a focus on financial inclusion for underbanked populations [45][48] Question: Advertising revenue growth and sustainability of consumer incentives - Management indicated that consumer incentives are expected to stabilize, while advertising revenue is projected to grow significantly [52][54] Question: Delivery margins and geographic differences - Management confirmed that delivery margins are improving, with a focus on achieving steady state margins across different markets [61] Question: In-store monetization strategies - The company is exploring in-store monetization through partnerships with offline retailers, enhancing the overall customer experience [77]