Grab, the ride-hailing company has exceeded expectations with its latest unaudited financial results. The company has reported strong revenue growth for Q4 and the full year ended December 31, 2022, surpassing the figures for the previous year. The company has attributed its success to its ability to capture the rebound in mobility demand, optimise its costs, reduce its cost-to-serve, and innovate products and services to drive stickiness and engagement within its ecosystem.
Revenue and EBITDA Results
Grab’s revenue for 2022 and adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for 2022’s second half have surpassed expectations. In Q4 2022, the company reported a revenue growth of 310% YoY to $502 million and a growth of 112% YoY for 2022, reaching $1.433 million. Gross merchandise value (GMV) for Q4 2022 grew by 11% YoY to $5 billion, and for 2022, GMV grew by 24% YoY to $19.9 billion.
The company also improved its loss for the period by 64% year over year to $391 million in Q4 2022 and by 51% year over year to $1.740 million for the full year 2022. Group adjusted EBITDA breakeven guidance has also been brought forward to Q4 2023 from the second half of 2024.
Leadership Changes
Grab has announced leadership changes following debates on social media about its appointment of a member of Parliament, Tin Pei Ling, as the company’s director of public affairs and policy. While the business determined that it would be better for Tin to go into a capacity that did not entail any government interactions in Singapore, she will be transferring to a corporate development position at Grab Singapore.
Delivery Revenues
Delivery revenue increased by $68 million in Q4 2022 as a result of a business model change for specific delivery offerings in one of Grab’s markets. Grab anticipates that the current delivery services offered in that market will continue to operate under this new business model. It projects revenue growth in 2023 to be between $2.20 billion and $2.30 billion, on a constant currency basis, ignoring the change in business model, growing by 45% to 55%.
Also read: Quiet Ride: The Latest Feature from Grab For Peaceful Commutes
Grab’s Q4 and full-year results show its commitment to driving sustainable growth and improving the efficiency of its ecosystem. The company has exceeded expectations in terms of revenue and adjusted EBITDA, making it a success story in the ride-hailing industry. Grab is looking to continue growing in a sustainable manner by driving cost efficiencies across the organisation and driving margin improvements while being prudent with its capital. Grab’s leadership changes demonstrate its willingness to listen to public feedback and make the necessary changes to continue building a successful business.
