Grab registers its first adjusted profit ever

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For the first time, Singapore-based Grab turned profitable on a group adjusted EBITDA level, hitting US$29 million in the quarter ended September 30.

“Our progress forward remains anchored on improving our marketplace efficiency, building better and more affordable services for our users, and empowering the millions of everyday entrepreneurs on our platform to thrive,” Anthony Tan, Grab’s co-founder and group CEO said in a statement.

It posted US$615 million in revenue for the third quarter of 2023, rising 61% year over year. The losses during the period improved 71% to US$99 million.

Grab’s deliveries revenue reached US$306 million during the quarter, marking a 79% year-on-year jump. The company attributed this to “reduction in incentives, GMV growth, and a change in business model of certain deliveries offerings in one of our markets.”

Mobility revenue was also up 31% to US$231 million. This was driven by “the recovery in tourism ride-hailing demand, and the growth in domestic demand,” the firm said. On the financial services side, segment revenue stood at US$50 million, a 156% surge year over year.

On the back of strong results, the company revised its revenue outlook for 2023 to between US$2.31 billion and US$2.33 billion – previously US$2.2 billion to US$2.3 billion.

In September, Grab was reportedly on the lookout to buy a part of Delivery Hero’s Southeast Asian operations, including the Foodpanda brand. If a deal happens, it will have to pass the scrutiny of regulators in Southeast Asia.

The Competition and Consumer Commission of Singapore has already raised concerns over Grab’s plan to acquire Trans-cab after conducting a preliminary review.

See also: Grab’s financial health in 11 charts