Grab revenue more than doubles YOY in Q3, deliveries hit EBITDA breakeven

With mobility charting a comeback and deliveries keeping up its pace, Singapore-based Grab has made sizable gains in revenue and narrowed adjusted losses.

Photo credit: Grab

The internet major logged US$382 million in revenue for the third quarter, surging 143% compared to the same period in 2021. Grab attributed the leap to strong performance from its mobility and deliveries segments, which saw 101% and 250% year-over-year growth, respectively.

The delivery vertical contributed US$171 million in revenue for the quarter, while segment gross merchandise volume (GMV) was at US$2.4 billion. The segment also saw adjusted EBITDA turn positive for the first time, hitting US$9 million compared to the US$22 million in EBITDA loss it generated in the same year-ago quarter.

“We accomplished this by staying laser-focused on our cost structure and incentives, while innovating on services that increase synergies within our super-app ecosystem to promote transaction frequency, user retention, and engagement,” Anthony Tan, group CEO and founder of Grab, said in a statement.

Meanwhile, revenue from the mobility vertical was at US$176 million for the quarter, with segment GMV reaching almost US$1 billion. The revenue of its financial services vertical went up 44% year on year to US$20 million, with US$1.5 billion in GMV.

Grab’s total adjusted EBITDA loss for the quarter also improved to hit US$161 million, a 24% uptick compared to 2021.

According to the company, the boost comes as it continues to grow GMV and optimize incentive spend as a percentage of GMV across its various verticals. Its GMV for the quarter was listed at US$5.1 billion, a 26% year-over-year jump.

Grab also updated its revenue guidance for financial year 2022 to US$1.32 billion to US$1.35 billion, up from US$1.25 billion to US$1.30 billion. It also revised its adjusted EBITDA loss guidance for the second half of FY 2022 to US$315 million, improving from its previous US$380 million loss forecast.

See also: Grab’s financial health in 9 charts