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Grab's Q4 2022 earnings exceed expectations in latest report

Grab's Q4 2022 earnings exceed expectations in latest report

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Ride-hailing company, Grab, has published its latest unaudited financial results and reported that there is strong revenue growth for the fourth quarter and full year ended 31 December 2022. Grab's revenue for 2022 and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2022's second half also surpassed expectations. 

The main results are shown in the following: 

  • Q4 2022 revenue grew by 310% year-over-year to US$502 million and 2022 revenue grew by 112% year-over-year to US$1.433 million.
  • Q4 2022 gross merchandise value (GMV) grew 11% year-over-year to US$5 billion, and 2022 GMV grew by 24% year-over-year to US$19.9 billion.
  • Q4 2022 loss for the period improved by 64% year-over-year to US$391 million, with 2022's loss for the year improving by 51% year-over-year to US$1.740 million.
  • Group adjusted EBITDA breakeven guidance brought forward to the fourth quarter of 2023 from the second half of 2024.

Grab achieved these results by focusing on capturing the rebound in mobility demand, optimising its costs, reducing its cost-to-serve and innovating products and services that drive stickiness and engagement within its ecosystem, said Anthony Tan, group chief executive officer and co-founder of Grab. "As we look ahead, we will remain laser-focused on driving sustainable growth and improving the efficiency of our ecosystem."

“Our 2022 and fourth quarter results demonstrate our commitment to accelerating our path to profitability. In the fourth quarter, we achieved revenue growth of 310% year-over-year, while improving our group and deliveries segment adjusted EBITDA margins and maintaining regional category leadership across our mobility and food deliveries businesses," Tan added. 

Don't miss: Grab moves MP Tin Pei Ling to 'corporate development' role after social outcry: PR professionals weigh in

grabs group fourth quarter 2022 key operatinal and financial highlights 1

Peter Oey, chief financial officer of Grab, said, “We are pleased to report a strong set of results, with full year revenues and second half 2022 adjusted EBITDA coming in well above our guidance ranges. In the fourth quarter, we recorded strong year-over-year growth in mobility revenue of 78%. In our deliveries segment, we focused on driving a more profitable and sustainable business, which resulted in deliveries segment adjusted EBITDA margins improving substantially on a year-over-year and quarter-over-quarter basis."

Oey added: "This sets us up for a strong 2023 as we continue to focus on growing in a sustainable manner by driving cost efficiencies across our organisation, and driving margin improvements whilst being prudent with our capital. We are accelerating our group breakeven outlook on an adjusted EBITDA basis to the fourth quarter of 2023, earlier than our prior expectations of the second half of 2024."

Deliveries revenues also benefited by US$68 million in Q4 2022 due to a business model change for certain delivery offerings in one of Grab's markets from being an agent arranging for delivery services provided by its driver-partners to end-users, to being a principal whereby Grab is the delivery service provider contractually responsible for the delivery services provided to end-users.

Excluding the change in business model, Q4 2022 and FY 2022 revenue growth would have been 255% YoY and 102% YoY, respectively. Grab expects this new business model to remain in place for those delivery offerings in that market going forward. On a constant currency basis and excluding the change in business model, it estimates revenue growth in 2023 to be 45% to 55%, between US$2.20 billion and US$2.30 billion.

Grab’s unaudited selected financial data for the three months and twelve months ended December 31, 2022, and 2021 included in the latest report and the investor webcast is based on financial data derived from Grab’s management accounts that have not been reviewed or audited.

On a leadership front, member of Parliament Tin Pei Ling will be moving to a corporate development role at Grab Singapore following debates on social media about her appointment as the company’s director of public affairs and policy. 

The news was announced by Tin on her social media accounts as well as in a statement by Grab that Tin posted on her page. Tin wrote on her LinkedIn page that following the recent public attention, she discussed the issue with Grab and agreed that it would be best for her to move into a role that did not involve any government relations in Singapore.

Related articles: 
GrabAds hires new Indonesia head
Grab hires new managing director for Malaysia
MP Tin Pei Ling joins Grab Singapore as public affairs and policy director
GrabAccess launches in Malaysia to empower people with disabilities
Grab plans to implement cost cuts as stated in CEO's memo to employees

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