Grab Holdings: On-Demand GMV Surges 20% YoY in Q4 2024

Grab Holdings Limited (NASDAQ: GRAB), the leading superapp in Southeast Asia, reported a strong fourth quarter of 2024, with on-Demand Gross Merchandise Value (GMV) growing 20% year-over-year (YoY). This acceleration in growth was driven by increasing user engagement, strategic investments, and cost optimization. The company's revenue and Adjusted EBITDA also improved significantly, reflecting its ability to scale the platform profitably.



Key Financial Metrics:

* Revenue: $764 million, up 17% YoY (15% on a constant currency basis)
* On-Demand GMV: $5.0 billion, up 20% YoY (19% on a constant currency basis)
* Profit for the quarter: $11 million
* Adjusted EBITDA: $97 million, up $61 million YoY

Drivers of Growth:

1. Increasing User Base: Grab's user base continued to grow, with 42 million Monthly Transacting Users (MTUs) on the platform in Q3 2024. This increase in users drove more transactions and contributed to the growth in on-Demand GMV.
2. Growth in Both Mobility and Deliveries: Grab's on-Demand GMV growth was driven by increases in both Mobility and Deliveries segments. In Q4 2024, Deliveries GMV growth accelerated to 13% YoY, compared to 4% YoY in 2023.
3. Improving Profitability and Cost Optimization: Grab's focus on improving profitability and optimizing costs led to a decline in regional corporate costs by 15% YoY in Q4 2024. This cost optimization, along with higher Group Adjusted EBITDA, contributed to the overall growth in on-Demand GMV.
4. Strategic Investments: Grab's investments across the business, such as in technology, marketing, and strategic partnerships, helped drive user demand trends and improve income opportunities for ecosystem partners, ultimately contributing to the acceleration in on-Demand GMV growth.

Outlook:

Grab Holdings' strong Q4 2024 results demonstrate the company's ability to drive user engagement, increase On-Demand GMV, and improve financial performance. With a growing user base, strategic investments, and cost optimization, Grab is well-positioned to continue its growth momentum into 2025 and deepen user engagement across its ecosystem. The company's focus on driving sustainable growth and improving the efficiency of its ecosystem will likely lead to further improvements in Adjusted EBITDA and Adjusted Free Cash Flow.