Grab aims to hit adjusted EBITDA breakeven sooner than expected

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Grab logged a revenue of US$502 million in the fourth quarter of 2022 – a 310% jump from the same period a year ago. The regional tech titan said the growth comes on the heels of a comeback in mobility, a reduction in total costs, and the launch of new products.

“This sets us up for a strong 2023 as we continue to focus on growing in a sustainable manner by driving cost efficiencies across our organization, and driving margin improvements whilst being prudent with our capital,” said Peter Oey, Grab’s CFO.

He added that the super app now expects to hit adjusted EBITDA breakeven within Q4 2023. Previously, Grab projected to reach this in the second half of 2024.

Revenue from mobility was at US$189 million for the quarter, a year-on-year increase of 78%. Segment gross merchandise value (GMV) stood at US$1.2 billion.

Meanwhile, deliveries still contributed the most to Grab’s topline, bringing in US$268 million for the quarter. The segment’s GMV stood at US$2.4 billion.

Adjusted EBITDA from deliveries was also in the black at US$47 million, in stark contrast to the US$84 million EBITDA loss the division posted during the same period last year.

Quarterly revenue from financial services came in at US$28 million, with a GMV of US$1.5 billion.

Grab’s total adjusted EBITDA loss for the quarter narrowed 63% year on year to US$111 million.

For the full year, revenue more than doubled to US$1.43 billion while losses narrowed 51% to US$1.74 billion. Adjusted EBITDA losses for the year shrank 6% to US$793 million.

See also: Grab’s financial health in 9 charts