Grab reports profitable Q4, to buy back shares

Photo credit: Grab

Southeast Asian super app Grab ended the December 2023 quarter in the black, posting US$11 million in profit for the period. This marks the first time the company logged a profitable quarter.

This is an improvement from a loss of US$391 million in Q4 2022. The company attributed this swing to an improved group adjusted EBITDA and reduced share-based compensation expenses, among other things.

With Peter Oey, Grab’s CFO, highlighting the company’s “robust balance sheet,” Grab also announced that its board has approved an up to US$500 million share repurchase plan for its class A ordinary shares.

While Grab did officially give its reasoning behind the share buyback, the move usually signals a company’s confidence that its stock would rise, at least in the short term.

Adjusted EBITDA-wise, the Singapore-based giant held on to its profitability, securing US$35 million in the quarter. It first hit the milestone in this metric during its September 2023 quarter.

“As we execute on our strategies in 2024, we expect to drive continued improvements in adjusted EBITDA and adjusted free cash flow,” said Oey.

Grab’s revenue also rose 30% year on year to US$653 million for Q4 2023, which the firm attributed to growth across all its segments.

Its deliveries segment continued to be Grab’s biggest money maker, with revenue from the business growing 20% to US$321 million in Q4 last year. Mobility revenue was not far behind – it was also up 26% to US$237 million.

For the full year, revenue jumped 65% year on year to US$2.36 billion, while losses stood at US$485 million – a 72% improvement.

The super app has been under the regulatory radar for monopoly concerns. In January, the Competition and Consumer Commission of Singapore started a review of the proposed acquisition of Trans-Cab by Grab.

Grab was also reportedly the suitor to acquire Delivery Hero’s Foodpanda business, but the Germany-based company has ended talks of any potential sale of its Southeast Asia arm.

See also: Grab’s financial health in 11 charts