Grab’s Q1 revenue inches up 6% as adjusted losses swell

Southeast Asian super app Grab reported a 6% year-over-year growth in revenue in the first three months of 2022.

Photo credit: Grab

Grab credited the growth to the improvement in its core segments’ gross merchandise value (GMV) and total payment volume. Meanwhile, its adjusted EBITDA was posted at a negative US$287 million, going down from US$111 million during the same quarter in 2021. The company cited “higher regional costs and incentive investments” for the decline.

The GMV in the first quarter of 2022 rose 32% YoY, while the monthly transacting users (MTUs) were up 10% YoY to hit 30.9 million. The average spend per user, which Grab defines as GMV per MTU, increased by 19%.

The company reported a net loss for the quarter at US$435 million, a nearly 35% improvement over the year.

It was “primarily due to elimination of the non-cash interest expense of Grab’s convertible redeemable preference shares that converted to ordinary shares in December 2021 and will no longer be incurred going forward,” Grab explained in a statement.

Segment-wise, Grab’s deliveries category recorded a 70% revenue growth while its GMV climbed by 50%. The mobility segment, however, saw a 22% drop in revenue while its GMV growth stayed flat at 3%. The company did not break down revenue from Jaya Grocer, which it acquired earlier this year.

For its earnings, Grab noted a gradual recovery in the  mobility segment as key markets like Singapore, Indonesia, and the Philippines have eased travel restrictions. The company hopes that the segment will stabilize in the second half of this year.

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Meanwhile, Grab’s financial services segment recorded a 52% revenue growth and its GMV increased 23%.

“Looking ahead, we are focused on growing sustainably by being disciplined with our capital, optimizing our fixed cost base, and tapering our incentive spend as the market rationalizes,” Peter Oey, Grab’s chief financial officer, said in a statement.