Grab reported a net loss of US$115 million for the first quarter of 2024, narrowing 54 per cent from its loss of US$250 million a year prior.
This was primarily due to better group adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda), as well as improved share-based compensation expenses, said the ride-hailing giant on Thursday (May 16).
The latest quarter’s results also included a US$31 million foreign exchange loss, along with US$94 million in non-cash share-based compensation expenses.
Revenue for Q1 grew 24 per cent year on the year, driven by revenue growth across all segments amid a reduction in on-demand incentives as a percentage of on-demand gross merchandise value (GMV).
On-demand GMV grew 18 per cent year on year, which the group attributed to strong underlying demand growth across its deliveries and mobility segments.
It also noted on-demand monthly transacting users rose 19 per cent on the year “despite seasonal headwinds”, amid Chinese New Year festivities and the Ramadan fasting period in the first quarter.
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Anthony Tan, co-founder and group chief executive of Grab, said: “Our focus on product-led growth is bearing fruit, with on-demand GMV scaling to new highs in spite of the seasonal impact we usually see in the first quarter of the year.
“Our push on affordability and reliability is pulling more people onto our platform and driving up order frequency. We also continue to see our partner earnings trending up.”
The group’s adjusted Ebitda stood at US$62 million for the quarter, as opposed to a loss of US$67 million in the previous year.
Grab said its adjusted profit was due to growth in on-demand GMV and revenue, along with improved profitability on a segment-adjusted Ebitda basis and lower regional corporate costs.
It also noted this marked the ninth consecutive quarter of sequential improvements in group adjusted Ebtida.
Peter Oey, chief financial officer of the group, said Grab in March repurchased about US$97 million worth of Class A ordinary shares under its US$500 million share repurchase programme.
The group also paid down the remaining US$497 million balance of its Term Loan B.