Net revenues, for one, grew 24% y-o-y on the back of 18% y-o-y gross merchandise volume growth (GMV). Grab’s robust delivery was mainly supported by the mobility segment wherein GMV/revenues grew 27% y-o-y, particularly helped by tourism and large corporate and social events.
Other segments also posted double-digit growth, alongside improved profitability, Maybank points out.
Grab’s adjusted ebitda of US$62 million ($83.55 million) was about 59% above consensus projection of US$39 million, DBS analyst Sachin Mittal highlights. The company also has increased its FY2024 adjusted ebitda guidance to US$250 million to US$270 million, while the revenue guidance is retained at 15% to 17%.
Moving forward, DBS projects a GMV CAGR of 12% over FY2023-FY2025, led by mobility and delivery. However, a rising delivery ebitda margins coupled with narrowing fintech losses and lower regional costs are likely to support much higher adjusted ebitda growth of 122%.
“Fintech’s adjusted ebitda losses are projected to reduce significantly in FY2024. Grab’s adjusted losses are on a downward trajectory with the reduction in funding costs for the payment business while DigiBank [is set] to benefit from a reduction in marketing expenses and a rise in lending business,” says Mittal.
DBS is raising its target price for Grab to US$4.50 from US$4.08 previously. This stems from rolling forward its valuation by six months to an average of FY2024-FY2025. Mittal also revised its adjusted ebitda estimates in FY2024/FY2025 by 25%/27%.
Meanwhile, Maybank is keeping its target price at US$4.50.
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Shares in Grab closed 5 US cents higher or 1.39% up on May 16 at US$3.65.
