On Thursday, Grab Holdings GRAB reported fourth-quarter fiscal 2024 revenue growth of 17% year-on-year (15% year-on-year on a constant currency basis) to $764.00 million, beating the consensus of $757.61 million.
EPS of $0.01 beat the consensus loss of $(0.01). The stock price declined after the results.
Also Read: Grab Follows Uber’s Lead, To Add Over 1K BYD EVs to Indonesian Fleet for Green Rides
Total incentives were $512 million in the quarter, with On-Demand incentives as a proportion of On-Demand GMV at 10.1%, compared to 9.4% in the fourth quarter of 2023.
Revenue for the Deliveries segment rose 13% year-on-year (10% year-on-year on a CC basis) to $407 million, driven by GMV growth and higher contributions from Advertising.
Mobility revenue was $282 million, up 19% year-on-year (17% year-on-year on a CC basis). This was underpinned by more substantial demand levels, with Mobility MTUs increasing by 22% while average order frequency grew by 5%. Financial Services revenue rose 38% year-on-year to $74 million.
On-Demand GMV grew 20% year-on-year to reach $5.03 billion. Delivery GMV grew by 19% year-on-year, and Mobility GMV grew by 23% year-on-year.
Group MTUs grew by 17% year over year to 43.9 million, and the average spend per user increased by 1% year over year to $126.
Group Adjusted EBITDA grew to $97 million from $35 million year-on-year.
FY25 Outlook: Grab projects revenue of $3.33 billion – $3.40 billion vs. consensus $3.398 billion, implying caution around a Southeast Asian ride-hailing and food delivery market where GoTo Group remains a tough rival.
CFO Peter Oey told Bloomberg that it always takes a more conservative view when it gives guidance at the beginning of the year. The company expects to report a positive net income in 2025. Grab justified the surge in quarterly incentives, citing an intentional fluctuation.
Grab Holdings stock surged over 53% in the last 12 months.
Price Action: GRAB shares traded lower by 9.94% at $4.81 at the last check on Thursday.
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