Grab Holdings Limited (GRAB) 23 Aug 232023 Q2 Earnings call transcript

Ladies and gentlemen, thank you for joining us today. My name is Ellen, and I'll be your conference operator for this session. Welcome to Grab's Second Quarter 2023 Results Call. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions]

the to turn start Eu now call. the will call Douglas over to I ahead, are whenever go please Douglas, you ready.

Relations Head Good day, earnings Asia me Eu, XXXX Chief Anthony Alex Officer. Tan, Officer; second Grab's and Chief Investor today of Executive are everyone, and Financial call. and welcome I'm Peter to Chief at joining Grab, Hungate, Officer; quarter Operating Douglas Oey,

highlights and and today, Anthony will financial will will business strategic achievements, call key who XXXX followed the of During provide details our operational Peter share quarter our Alex, by discuss second results.

open Following prepared remarks, call we will the questions. to

a and performance. including are statements which forward-looking about undertake These year results other due and do to could SEC. other As business, of for described statements. of December We in industry, beliefs the financial filings based contains XX, are as and our uncertainties, and differ the on update materially business today's Form any reminder, number XXXX statements obligation and a and discussion events company's risks to Actual XX-F the ended forward-looking regulatory expectations future risks, macroeconomic, with any our today. not

substitutes also A financial with measures considered financial contains rather included today in financial is reconciliation measures materials. IFRS which be than earnings should discussion The of non-IFRS non-IFRS IFRS as for measures. together to quarter's this

detailed presentation be a recent Investor please can to refer our website. for press quarter review, performance, and disclosures business For Relations more and supplemental on on additional information our earnings XXXX found release which second financial

his opening turn the call And to with to over will that, deliver Anthony remarks. I

us today. you for Thanks, joining Doug. Thank

execute leadership growth, profitability. second results and to strongly we as balance our category Our quarter reflect ability

More well engagement growing at through with are X% all-time subscription quarter-on-quarter. Our people year-on-year group before by affordability our marketplace results. MTUs using continues GrabUnlimited initiatives our flagship focus to now Grab X% ever as yield and on than strengthening as program called an through expanding high,

our extended region we food time, ride-hailing same and the category further deliveries. for the leadership at And across

up XX% continue solid We deliver a to year-on-year. financials with revenues set of

we quarter. I also record EBITDA had reduced for quarter. deliveries Even out the GMV group losses a as adjusted want call our that high to sixth this consecutive

towards confidence rearview optimism. With the mirror, look half and in half with firmly the we second first

want are key call out. three There areas I to

expect we in Firstly, while affordability our and continue to July sequential key deepening we is to segments. robust market loyalty deliveries drive GrabUnlimited. more initiatives greater Demand a growth to to users with as mobility engagement to of cater unlock the drive segment in and

strong to where financial we services opportunities scale benefits advertising up in we Secondly, and expect for and overall new see demand our potential ecosystem.

financial transactions. on continue to focus ecosystem up we driving services, In

business lending in Our growing manner. yet a prudent is strongly,

we've seen savings opening costs GXS increasing to individuals a Grab the For the their and one customer Ecosystem are to Bank more also Singapore, up in strong also linkages minimal deposit after acquisition healthy GXS linking wallet. despite customers accounts maximum the in two allowable deposits in account. uptick with account per

annualized up revenue revenues hit rate over our and an run X% of GMV milestone we advertising, For deliveries advertising scaling of achieving million. a $XXX with to

ad will the monetization ads continue penetration increase our Looking ahead, we of to and platform. improve

AI operational to experience. efforts. innovations these greater an user tech unlock we in enhancing will role driving the efficiencies Third, while important overall on continue to increasingly Generative focus play

and processes generative using faster. been so debug grabbers we've queries example, augment and AI conduct to codes For can internal that workflows

also improved translated features users, introduced LLM chat and such Grab we For translations. our as powered menus

and to prospects optimistic our longer-term Overall, committed sustainable our anchored on are business operating we on growth. growth remain

becoming users the headroom and partners are region to and in Southeast do Southeast today. Asia that to on we most on-demand platform enables services. in drive-in local track efficient aim XX access mobility one to of toward serve underpenetrated will Asia's financial we commerce, sustainably is millions the and see largest and we services of still the our and merchant that And products so across beyond platform our plenty as

I'll quarter highlights detail. time more second cover operational over Alex now our in to the hand to

Anthony. operational while highlights and go category I'll across line to by GMV with mobility. continued deeper state extending remained second adjusted grow further year-on-year, in steady with into segment EBITDA the the the segment, in guidance. our revenues you, Grab strongly Thank with quarter business Mobility starting margins leadership and region, its our

recover. increases rides XX% to seeing traveler mobility per International continued continues frequency year-on-year as levels. are pre-COVID MTUs, increased demand Demand of as with XX% remains strong quarter-on-quarter XX% user, the airport year-on-year by average year-on-year. well in and reach We growing we and latter to

normalized Several decision from GMV our now on with partnerships across the with focus to the Grab out meaningful travel traveler on guest levels. months and experiences and see we traveler rebound. capture mobility back, to homepages markets XX% also of Alipay continue We demand traction further improving made browsing Kakao. pre-COVID app our rolled to Domestic a and post-COVID strategic WeChat,

supply growth support improving with supply at the increased now we XXXX surpassed as XX% core compare by monthly either such second of Malaysia, demand, reached focus continue levels. pre-COVID. these mobility quarter, this supply. levels active When between quarter markets the XXXX, and To period Singapore in same second several on our we levels or in XX% driver to In GMV of have and driver Thailand year-on-year

the of also the Singapore our expected in third We supplement operator. signing could base This of announced agreement taxi the completion to largest an the in shares upon supply further Singapore's of XXX% deal. Trans-Cab, acquire

experience user We on drive to also our continue platform. enhance overall product driver to innovation the and

car-pooling are Grab's share Malaysia and to on relaunch successful our such two-wheel to Moovit users in services the the enhance out more cater options the in Philippines. of of into and rolling offering a app as in We the and tech Grab building product to Philippines, Indonesia, and relaunched enhancing Singapore our affordability integrating

as based now who of for which A bookings. our per is navigation improvements This Grab example And driver from also saw partners improving third-party app their apps. key feature We two focused rates earnings fulfillment on are hour productivity compared trips to within enhance in to driver utilized Grab data on utilized is potential. Navigation, have and Grab we one transit in Maps.

a our we being As proportion XXX surge have reduced mobility same fulfillment seen rates over points period. by of efforts, rides and by year-on-year basis basis result further the the to points of increasing XXX

of Driver X% XX%. transit active while by at quarterly partners also earnings healthy retention quarter-on-quarter, per increased and hour our year-on-year is driver X% rates

this continued Over in of drive we to and from expect travelers the increase rest demand local commuters. year, a

at adjusted for at XXXX mobility As steady exit such, GMV we EBITDA levels our expectations state. margins reiterate pre-COVID while to we maintain our segment

Last continued the about we for the prospects deliveries. half. We growth to the second on there in quarter, quarter with deliveries. expected moving rebound questions were second in sequential in Now a growth growth that said

our to we pleased the that expand continue at to GMV margins. same while adjusted are We grew deliveries XX% report high, time, to EBITDA all-time quarter-on-quarter an segment reach

growth two The a main of year-on-year was result initiatives.

First, to we expanded driving and our driver times markets to focused users. To at efficiency, more our wait cost allocation on technology reduce up batching affordability we serve orders serve key improve and our picking to to better further continue when driver just-in-time reducing merchants. initiatives to enhance

hour X% times driver for transit reduced year-on-year, quarter, XX% merchant partners driver year-on-year. our wait increased at our while the by trips For partners per further by

times of have X user program. retention one-third primarily GMV GrabUnlimited we through base, GrabUnlimited, more that the to on were our also Second, grown continue than subscriptions with engagement rates subscribers average spent deliveries approximately for and our quarter to in the approximately first deliveries nonsubscribers. higher GrabUnlimited X.X non-subscribers account over deepen subscribers times food half. second than had

Grocer loyalty and more Jaya retention on the customer lever represent has in average, in X.X In In program nonmembers. a of program the XX% key members of spent the base addition, and improving engagement. Malaysia, customer total times than been June, loyalty

them For our engagement earnings we partners, levels their helping and on focus continue deepening increase merchant potential. to

our do the so see increased and merchants, our by earnings grows, quarter-on-quarter. marketplace to median our that pleased merchants we are deliveries for X% As

a several the also the single food cater launch within across merchant with Grab our delivery providing needs partners platform. self-pickup We've users' our to dine-in, ability beta to markets, and announced dine-in of

allows dine-in prepurchase For well consumer as rides to to vouchers, restaurants. and dine-in menus view as book users, them restaurant reviews

further another we to well. into yet expect third ahead to as to quarter drive to fourth Looking growth the sequentially the quarter, record and achieve high GMV growth drive quarterly expect we

I with deliveries with robust to can you and at MTUs year-on-year. share in July fact, now be this highest In continues that year point our growing its performance month-on-month GMV and

we as we So we driving deliveries. our are growth steady-state X% a plus progress optimistic the growth. manner for this sustainable towards margins same At in of on time, are

Services. Next on to Financial

manage insights quarter, our by revenue grew executed providing for focused We to During quarter-on-quarter our have XX% Grab's strategy of year-on-year. ecosystem both our costs, and payments lending. control Services and XX% we focus platform Total while generated as was credit to own activities. ecosystem. revenues lending and data loan Financial the disbursements on better we to deep uplift grew lending our on where to positive year-on-year

individual regulators dollars GXS And pleased maximum July, we GXS also increased so amount eligible share the total Bank account the I'm digital to at our savings time, allowed accounts individuals opened up to Singapore Singapore in same deposits, in prior. bank the in XX,XXX savings that to increase more deposit from GXS to for Singapore. X,XXX

finance levels, are minimal we users our to costs. GXS have we book. healthy with one two result, customer linking a with ecosystem current no linkages in deposits at a able to uptick Grab. strong acquisition As to adequately GXS Furthermore, seen loan And accounts are their and

slight losses breakeven mainly reduced in was with segment record a Day in GrabFin, consistent where year-on-year shared quarter-on-quarter. by on before reach last cost Digibank peak increase we expect by to an our losses we we of back reducing EBITDA in in year XXXX. had losses this increase did have investments, savings XXXX Digibank to This adjusted driven year, Investor While what during we the

in to higher expenses For to payments attributed efficiencies. as being overhead was further by we funds the in support savings variable GrabFin, flattish our increase of expenses offset cost operational platform with spend improved quarter-on-quarter a

doubled also adjusted tripled. segment. Finally, Year-on-year on and EBITDA new our enterprise while segment revenues nearly initiatives

penetration and to underpinned merchant The to monetization. partners performance was among attributed strong improve advertising increase to our our by efforts advertising

annualized our value and new mentioned We more our the as brands. partners So than comprising we of $XXX in uplift attaining around earlier, rate million. quarter driving an milestone revenues, a merchant our with second in run top of and revenue other confident Anthony hit GMV services advertising for in remain deliveries and advertising X%

a chain a belonging funnel X%, for purchase campaign XX% ad a X.X ad by for we intent brand Group, instance, times as as respectively, lottery restaurant completing and study Grab For quoting full see the to encouraged well food on and Lotte in were awareness the spend of conducted inside brandless return app. Vietnam, the to fast increases in a after

in resulted X.X which ran another example, Singapore ad Grab Singapore, a in increase with ads a users during Friday, unique along Amazon, reach XX% with a of In campaign Black in awareness. million

maintaining rest our So as and on we look growth XXXX, to food and improving in our while to we category trajectory continuing of leadership ride-hailing profitability our or position deliveries. path the focused are

results. call financial to I will review the to the quarter now second turn Peter over

another both We're Thanks, bottom strong line. line pleased top results Alex. of and to the report across set

Our to or quarter-on-quarter X% group million. a XX% XX% revenues and on year-on-year grew constant in second the reach quarter $XXX currency basis

We continued our all segments record to growth revenue strong across business. of

$XXX up revenues constant a to and hit XX% were XX% on million. X% currency year-on-year Mobility or quarter-on-quarter basis.

us efforts domestic supply demand. recovery in demand have enabled region the across Our tourism in the capture growth to and improve to

and $XXX basis by GMV reduction incentives revenue currency grew reach year-on-year driven and This XXX% to primarily growth. quarter-on-quarter Our on XXX% deliveries a X% constant million. in or was a

and Financial improved XXX% from by underpinned constant contributions lending. a on by increased monetization quarter-on-quarter of and currency Services XXX% $XX to revenue our or X% business year-on-year payments million, grew basis

growth new XX% was grew enterprise a the Finally, basis XX% and by quarter-on-quarter initiatives in to revenues. $XX or currency supported million. continued year-on-year advertising and on hit XX% revenues constant This

in which an now group a a X% was the group achieved all-time We increase for growth new or GMV. in recorded X% second supported year-on-year to constant MTUs, reach quarter. of to $X.X by currency basis the on Turning high billion This quarter.

on track recorded deliveries strongly grew XX% GMV or and to a a XXXX basis. growth or X% currency billion. levels. Our GMV was Mobility at XX% XX% we and This back on-demand year-on-year constant new GMV basis of record also constant basis, X% $X.X currency towards segments or currency XX% a precured our deliveries constant saw for increase and bounced Deliveries exit year-on-year to an mobility of GMV on of on remain on year-on-year a growth by GMV.

margins the Moving improved million on XXX year. in in EBITDA. basis improving to segment same $XXX was EBITDA $XX negative second year-on-year adjusted segment Total from and a adjusted last million quarter-on-quarter. basis period Segment XX quarter, the points points

total XX.X% the an which year. $XX XX of second XXX grew as a EBITDA to We segment percentage or of same from million, Deliveries continue an in GMV, incentives expansion X.X%. to quarter is margin year-on-year in the last basis X% declined to adjusted of reductions basis deliver This period representing quarter-on-quarter. EBITDA points points in

quarter, segment year-on-year line million second X% majority of XX% quarter. adjusted margin markets our margins the state to in XX%. XX.X% quarter, target mobility, exceeding the the were In second have $XXX broadly core the margins In to EBITDA steady-state steady in target. grew continue the EBITDA in of with our second

improvement, a For EBITDA million, Financial $XX adjusted quarter-on-quarter. segment XX% declined representing year-on-year improved Services, negative to but X%

driven mainly by levels As our this of increased operations. Alex for mentioned, investments Digibank was

the EBITDA the from adjusted last efforts to penetration The year. our second merchant in advertising to with Finally, for mainly expanding base. period XX.X% tripled our profitability same advertising of attributed services initiatives, year-on-year is our enterprise segment to increase and in improve with monetization deepen quarter margins to X.X% and new in active

For improved period year prior to the and million in $XXX the quarter, in prior compared costs copper to million second quarter. $XXX as the $XXX regional million our

optimization On cost several basis, items. year-on-year drove across line we a

in This the count lower and conducted a efficiencies, of declined over declined cloud and regional was various Staff specifically levels fixed direct recognized costs year-on-year driven costs X% variable from costs, across accounts slightly June. XX% Our copper exercise half our and reversal operational expenses for year-on-year by of functions XX% by costs. increased from marketing driven which restructuring costs quarter-on-quarter. lower head

savings restructuring On the business this cost will expected to be annualized result the cost exercise latter the are adjusted million of above the in point, estimate in line. EBITDA that we of remainder copper in $XX realized costs savings segments. XX% regional with these

in to second be anticipate of will on half Looking the to the half. ahead, and continue costs improve costs from regional XXXX we we disciplined copper first

top on adjusted adjusted million, EBITDA Group strong the $XX of line growth, to focus EBITDA result and of improvement greater negative year-on-year million. a a As improved profitability. margins Group representing $XXX adjusted improved to are achieving quarter. on optimizations also a our on growth negative towards and With group for EBITDA track well business, driving focus profitable breakeven. across X.X% the we cost

of are revising quarter breakeven XXXX. prior we fourth our time third such, to As up expectations our XXXX line of from the of the quarter

of and representing from second on year. improvement to of IFRS last $XXX the lower We improving due quarter $XXX basis, same share-based fair loss. a in million value losses on Moving This is period loss XX% on a EBITDA reported investments. to compensation million, a lowered a loss expenses profitability group adjusted

quarter On the included restructuring restructuring. of of losses to of do compensation from June, we the out the call second the in back expenses in reduction of our were want the share-based IFRS Correspondingly, I restructuring announced also million charges. in reversal that to our some $XX due exercise expenses

sheet. balance our to Turning

liquidity $X.X prior which billion at cash gross cash $X.X end continues the with and of liquidity slightly quarter. second Our declined of ended strong. the remain the quarter position billion to We from

of liquidity cash end compared quarter. net in to as $X.X at billion second prior the was the Our billion quarter $X the

driving XXXX, As focused look while remain we are that quarter. the in sustainably. third to GMV profitability we we will the In towards grow of business the rest sequentially confident scaling on deliveries,

growth GMV as marketplace, Demand affordability to continues continues to to up increase our momentum and with engagement improve benefit July. into strongly the strategies hold carrying

quarter, optimistic towards this another are steady-state our sustainably will recording Similarly, we capitalize adjusted EBITDA as margin mobility on balance to GMV of on segment While near-term with plus. we X% drive we into pre-covid on growth, by target aim quarter. the levels confident also GMV strong adjusted of segment steady remain We this are the EBITDA state of track maintaining sequential and while year, growth reach mobility tailwinds third growth to end the for margins XX%. heading of we sustained

segments million. an loss XXXX. achieving same up to we hit mentioned XXXX growth from we With As At guidance expectations adjusted expectations $X.X million of in towards of group quarter, is EBITDA quarter on we adjusted earlier, in strongly of all $XX to performing group are year second breakeven earlier well our full are the million. our $X.X XXXX, year-on-year million also target our quarter of fourth our the adjusted third the to EBITDA time, than $XX revising tracking the improvement EBITDA revenue $XXX between negative and XX% to to of $XXX This of a XX% billion previous maintain billion. prior

bottom sight clear In achieving line conclusion, with line we top where delivered and the a quarter another we of executed to profitability our milestone. on now strong

As like results our for merchant in want our work always, express we and deep and for hard (ph) to these partners. thank and Anthony, driver to Alex making their Grabbers possible I appreciation would

still there's marketplace we our discipline a strategies strong to are of sustainably. to confident us cost and work lot balance grow business While ahead us, enable continue sheet, our of will that and

for will the Thank to call much we questions. now you very your time, and open up

you. we Bernstein. Venugopal start first Thank gentlemen, [Operator now the comes Ladies question-and-answer question portion of from call. Our Instructions] Garre and from the will

Your question. go line Please now with is open. ahead your

a lot. Thanks Hi.

Firstly, congratulations the for opening on and the remarks. thanks very good detailed quarter

questions a few questions. two get I the quite do So answered. still of have broad

segment, side that really in Firstly, understand is to sustainability haven't it think this much seen to driven? that a be appears also we yet And market the on what delivery, wanted understand of And we to sector? driving know, the that was and given size of the this broad fairly actually growth to decent basket of on the the in any commentary delivery process I growth? seen food I food How wanted is I profitability that thought also primarily given quarter. curious consolidation have

year done to what are I having deposits? rates which interest know curious incrementally When contributing the that Any and now in with low expect respect able it a GXS profits Digibank your about on I would And quite the to with on on plan is to X.X%, system, compared really we being think, be question to with you. offered gather the start to also, do X.XX% is products deposits last was this? was, full-fledged banking second actually that around Singapore. to update or my Thank lending is launch we great. normal broader And

Alex. Venu. This is Thanks,

part scale cost using what And we think me affordability? remarks, they're sustainable. of terms those of about questions. food those growth Let deeper into we're that to that to things second barely single-digit the then well two because engagement, in is drive passing that in particularly of On Asia driving both down then We sustainable point, take -- the penetrated mentioned continue think the plenty there's I it and deliveries, with given we've using for Both been doing, on to those to same strategy. market this at -- GrabUnlimited. upside serve and are the penetration Southeast of that working us like

In increase there per increase. quarter, was the spend the which an in user, drove

that to will And so we continue execute strategy.

mentioned consolidation. You

Therefore, us We than scale the do more accrue we are category advantages others. to position leader. those do

going to as continue growth sticking those there's from advertising sure good the deliveries and long-term our customers business, advantages. the So margins and We're generates execution that focus which you've margin, benefit that to seen to our on in well. on X% which of is make we're back guidance on plus also

So additional top from benefit advertising of there's that. financially on

deposits the and then competition me breakeven. and turn question the the Let for your Digibank to about

the breakeven to time said the we XXXX. last we year that Day in for this collectively still that. Investor what on We're track three banks confirm at I So expect

deposits, the raised bank we deposits. on regulator For had the cap recently

very able after raise we to deposits were that. So fast

were July very able in happened to that we and raise fast. So deposits

noticed, savings the as of fact, our coming down on you slow in. we've rate rate account then, new to deposits since reduced In probably the interest

have brand, like contributed our So app and ecosystem our use of of the it to success. that ease our seems all banking

to continue to Malaysia half, all in in we'll Singapore, double we the So not as to second Indonesia launch we well. in things on as just and the grow bank down of those seek expect in, but

we've about NPS specifically Singapore lending that called a asked is product launched You It has The loan. lending the score. in Flexi product. market-leading

are very with loan now are redeploying happy very book this growing those -- product. raised. we've happy deposits steadily the customers With the our -- we're product, So our that we and

availability as And to marketing progressively that the deepen of accelerate Singapore. models, we so be our loan able the and credit in we'll

ecosystem. customers thus that been also of and We've both to bank to bank lend to able far, are under the traditional part our

very our that questions. pursue helping very we we're So move to that we to in as of segment the Asia. serve this Southeast markets to I Thanks, is Indonesia. all covered expect And market be hopefully, when and particular, large in also us such underbanked pleased your that, mission will

much. so you Thank Yeah.

Thank you.

question is comes line Piyush Piyush, from next now open. Our go ahead. your Choudhary. Please

such Yeah. couple the Thanks to a management team and Hi. set of performance. for strong A questions. congratulations a lot of

countries for you Indonesia, to And Firstly, over share-based looking Secondly, Singapore, cash would update on competitive particularly savings? savings strategy Trans-Cab, OpEx can similar mobility, restructuring, or would down in landscape in helpful. be in and on that, would be addition supply million $XX or you. in opportunities open And be if there? Thank the Thailand much a come was the the how to us an be I and problem? compensation solve give confirm that or annualized the savings what to you other will similar can mobility, would it Singapore-specific

Piyush. Hi,

first the take take Alex competitive landscape. as then Trans-Cab the the will and me Let one as well

cash $XX savings restructuring, which it in perspective $XX a And the the copper of and and across your And costs is. hit from for segments. our savings. was that million of compensation, business question about of stock-based SBC roughly million. on regional XX% So Yes, that's annualized second from -- -- XX% the is quarter, terms will

the driven Now the restructuring. -- there reversal line, onetime was some from in from SBC

on stock-based mark, our our you use about number QX modeling if a will $XX a basis, So you that compensation could that's that at and $XX million from about a the perspective. roughly way number, million below look go-forward to think be

[Technical In me Let Difficulty]. talk Yeah. the about Trans-Cab. Singapore, the

Hi.

hear we you. Sorry, can’t

Yes.

are taxi Do So cost we Just interested our question serve. to the on let leveraging drive your license Trans-Cab. me on in hear to up down me? you pick

you So COE. that taxi at in to purchase know. very as vehicles us affordability cost doubling to an holders there high, serve is allow Singapore. can Singapore is down And will and on cost advantage on license That they of keep to a reducing lower

special such we make close to attractive a be particularly but high Singapore other that on So in transactions, M&A a proposition. in those have It's would circumstances very this not bar we general.

And attractive be would synergies a reproduce in we have strategic kinds so, very it acquisition to of situation. the that Trans-Cab the to saw

let me pick Competitive that up for. landscape,

about it's of asked Indonesia, across that Thailand, translate using Singapore, affordability. some and many able the You in particular. into about reliability the same meaningful deliveries we've better we're tools regional in I for great would because talked built tech better and seeing all that ways playbook we're to say that scale that we markets,

whole improving in just means we of And creating customers which large is language that tech to better. markets Indonesia. advantages category serve bullets, models us but silver a machine further powerful Thailand help bunch that earlier using a even Singapore, mobility are Anthony really our learning, was No and in capabilities, like position saying like

because we'll So that to we to strategy serve. and think to go on more double more customers continue there's execution down

you. Thank

will Goldman now open. is Sachs. from Pang, We ahead, next when Vitt are you ready. from take our go your line Pang question Please now

Two evening on Great. questions the Thank opportunities you very the management much from the please. call. good me, and for

what margin while sequential question expand done than to quarter, deliver also to in from try you GMV to now? holding especially to noticed to market basis. have in share margins than Are market this? Or share achieve Indonesia, Can your number your market us peers, stronger differently a considerably managed will I expansion up on you continue for the services planning the trends peers your you your you That's with have the that a Firstly, on-demand improved you one. share?

Question two, with regards to number MTU. your

well. now high at the are July going into as of all-time month We

successfully Just underserved from done managed already you X to users to new have an the achieve Does Tier this? have into penetrate to reasons? expansion into understand continue to metro area want what or deeper to expand you come

Pang, together The earlier terms market competitive market playbook. question. Maps, scale capabilities in advantage position powerful refer the our other -- I it's It's I a share powerful platform The very we've think thanks, leader think share, of have. for that your that my our category I to would answers Grab don't as of platforms built. When with

us help think our ads together, earn our more coming to and other platform, to do serve our more customers they allowing data generating better platforms. payments to than partners and and about merchants You more and our all platform in

All penetrate of city. generate us all us loyalty to by helps helps and more to city that deeper of that

stronghold We in of cities of say there think But that And X in is we we've growth cities traditional in Indonesia quarter. have over which of the plenty the also expanded outer more seen would are growth. our can the that Indonesia. into big part we that grow, so Tier I cities have been

these. growth both balanced So between of been has the

steady-state margin of our are growth, versus at for we margins already terms In mobility.

we than don't to need we comfortable sustainable. with feel that. so higher And We're as go those that

total Like share a and earlier, greater you'll Asia I serve focus market. market we the affordability see driving our continuing Southeast the grow only of better through services. So to on single-digit was reliable saying

that So growth lots still of we have we upside. feel

all-time an are MTUs at high.

that. confident of the the are that We main is affordability driver push

So large are penetrate plenty segments to there then untapped cities both outer haven't of able until we the because been up in and now. cities the that

help to going to affordability to feel grow continue us So really we is MTU. like

marketing. no more city optimized through it's magic there's affordability, really to and Again, city by of and pushing the that. reliability improving So

Not side. promotion so much the

and even the promotions we've see as our over we continue have consistently. quarter this in refined last can optimize to You quite further XX months

time, daily getting services them routines. our more part that. of able low it's do their to everyday affordable, making more But we've So to been this about pricing, make more people of

in choice. looking X% I'll beyond longer just it's fulfillment. term. better has many one And at shorter-term MTUs, the whether these go It's the improvements, helped many or This affordability, multipronged silver really into reliable not two whether it's fundamental in bullets. fundamental reliability, to us it's completely, investments right? the most We're become and whether comment basic, is we've most X% the that. of seen approach in of Alex just and

approach seeing Longer across we are term, services. multipronged this

it's So a broader Then alluded evolve whether city services, to outer as we of it it's we're car-pooling the expansion. users. range whether options, you the saver seeing deliveries, reaches as now well paying just

right. You're

market more can do better of passing are better Now with on consumers. we out reach have that city, we how fit do it? savings services, costs, product we and to but we we're our driving As affordable

lending at really and then ecosystem that, not uplift and within our our partners. helps And Financial segment looked increasing just that product offerings it's also we the Services

So taking constant on as margin affordability given product all has as engagement, well. that more place even plus that and loyalty, about innovation talked while more long growth this is expansion Peter reliability us

We (ph). So and we going see our a are our to time power user ecosystem given base. see our actually a headroom grow platform tremendous scale confident. to that and of We We we're see large grow. multipronged still approach,

Thank you.

Thank you.

Thomas, go next Our Thomas ahead, whenever from please Jefferies. ready. from question are comes Chong you

the growth players on Hi. Asia Good looking the into also side, on is the question evening. are environment, -- of other very macro trend my strong looking our given market are Thanks to seeing a reinvestment into we management reinvest first grow on the and strategies questions second drive set the is gain macro in results. -- to about And that how half? to the Southeast share. My for congratulations taking and management coming about

number So one. that's

the we generative pricing number the in then AI, prepared about And talk regarding remarks. two,

you. regard expect Internet just strategies our color generative get want with and big into the AI going sector. change the I there future, to Asia Thank [indiscernible] in Southeast we to should would a be So some

Great questions, appreciate Really Thomas. it.

comment of second half. for let So me course, macros on

and to for do So remain the to But macro will growth on profitability monitor can our this overall, of the our and drive environment. and we And confident ability to in through advantage is ever why that? leadership inflation, execute any evolving do region. any closely ever changing, scale. thing us weaknesses risk in continues platform our right quickly macroeconomic category regardless Through adapt our to we ecosystem to we

while the we all-time second narrowed and grew around we at EBITDA this talked saw at million, an losses. in you about quarter, high Alex this $XX And MTUs,

little, for talked fundamental can't the So And our and this. important way serve thanks There's Grabbers I driving there, to a initiatives. affordability, the silver on overemphasize out our lots secret, the all we little who people that's improvements. pass more savings can bullet, partners. Again, hundreds in all we've only just no reliability, out very of to manner. about And more more no to are users sustainable serve but of continuously so we

play region vast, to that AI and And app. will This is we what experience data have our we if they do. on quickly role -- for continue on learning in to your user powers for platform (ph) in at all The And AI continue already And machine experience our of teams for been truth incredibly it's everything very to applications we've may this wonderful efficiently Grab jump partner thanks built to, question. forefront the the G innovate, specifically with AI to generative and communities increasingly our blessed. tech (ph) again, AI. for the we the the an honest infrastructure to I important Now AI. specifically enhance continue been serve. We've

talked We to improved it. and menus it's already Now processes. and our been workflows data AI we've translate helped about internal our to us about augment debug. It us helps queries do much chat. grab today, It talked I helps using generative how faster.

experience. For to the us, user continue tech, efficiency we'll there overall we continue unlock enhancing while to will leverage AI out leverage operational to the

your jump on on most to profitability profitability. statements so front some and e-commerce not recently. on maybe have are space, I'll the about really, on our There in driving And question reinvestment of competitors the In Thomas, just focused been reinvestment.

seen really space. our in that haven't we So

our as we're far we're said margin our comfortable are, we're already with to for our margins earlier, As comfortable long-term where concerned, state we as sustainable then And margins long-term in deliveries. close mobility. steady very at

the actually are and we affordability focusing on So growing market.

Thank you.

Thank you.

from Citigroup. next Our comes question ahead. from Alicia please Alicia, go

open. Your line is

bit percentage and we're the to on the advertising and a questions the verticals to And this also you. reach. results. quick are Hi. for industry GMV could terms share advertising Number And solid taking GMV, also of is congrats two management. ad medium Thank paying one, the of, then have? business you example, able the in you what evening, what contribute expect that for on if numbers I my that can management growth? term, Good on of that attract of revenue Thanks the the a questions. have

these And quickly, all given then question second and outperformance in revenue. improving GMV also growth

Just little or room. to a unchanged bit curious more be leave that revenue why trying or management decided it to keep target the just full conservative is year

Thank appreciated. that on you. color be any would So

your Alicia, questions. Thanks, for

Let advertising quarter. performance one. the me Yeah, of of highlights is the the advertising one the take

done pushing how We we're by We're And but at you low -- tools tell tail we've still for to are reached, large I still, very of that we've GMV very X% out now rate. long the merchants that disclosing many can self-serve not our we're region. we across the serve a of at advertising. penetration

of some improving out. And continuing that we help I as we very further We so of as capability by will push upside can that tools there's us. studies that know tools also attractive. [indiscernible] earlier So generate well, self-serve we're the to can mentioned, the is lots that those within key that create, the

we on far, primarily So advertising. focus endemic

asked the on. we that You are focusing about segments

services. the meaning advertising, further endemic ecosystem. do We F&B driving like can endemic verticals side potentially advertising merchants the mobility other the within within financial and demand So

So I to can us penetration that's food penetrate we tapped, also within which be GMV. mentioned, further. as of yet help a will grow deeper And then to itself,

not who advertisers, are brand serve the also do on We endemic platform.

are these brand owners. So

the the You can selection use you see Grab app. as

the loop For advertising. on can't those, we close the

them them. the have we audience endemic for So still show can like we we of very the a But can't advertisers. the attractive for they performance that ads place

to platform. So reach ability the and into they'll digital the the users go first-party for first-party, authenticated our reach for on audience

we're for So attractive also them.

audience, the that reach. actually For and the unlimited they're demographic almost targeting it's because

So there's auto, goods, no FMCG a advertisers particular from constraint cetera. consumer when in wide range we have which terms of et to segments across

we're revenue your revenue XXXX Yes, guidance. on question, that's maintaining Alicia, our right.

XX% If is, seeing growth we We're headline guidance. also it's we're to a about basis. a this a can strong we're maintaining continue stage, was but to say July at I revenue What us. for as on our update year-over-year front. we'll to, need you year-on-year XX% growth, revenue from look good traction the on

probably strong, you range, the up ending be to at how probably some we're color going end on give perspective looking we're the of and should are upper and and tracking. We that

Thank you. Okay.

Thank you.

from from your Our with next proceed comes now Mark open Evercore. Mahaney Please question. question Mark, your line is

big like big how base can customers your could you for about there Like GrabUnlimited base GrabUnlimited figuring think or be? regions think and Okay. out Thanks XX% GrabUnlimited how what's we How subscriber do you the be? then could be, I'd incentives. On users? do where -- we are you -- about XX% see how know the that the segment framework as to do ask total of GrabUnlimited, how

And long think they've then where although in do to I I term? down mobility. nicely segment, almost come want in what is, know incentives, can ask on year-over-year you incentives go not every

on that least you ticked much. So company, then to where does or can this or just And basis. incentives X% up mobility X% what X% a very to term? back trend you the overall now Is sequential a want at you think just Thank why X% as do kind explain at go, -- quarter, of do? there that incentives long

Yeah. Thanks, Mark.

reasons. GrabUnlimited two the financially question. significantly for take it -- retention me successful retention. drives One is GrabUnlimited is, for us drives Let

for And drives then we thing customer that's the that other value the when of run one biggest further. drivers the long-term platform. course, Of models, for the the GMV of value is

lever, more that skip of it that they'll hunters, the So people There's the is loyalty, to promotion is in people they're in third amount interested allows promotion spent which reduce money, on us program. promotion which just from once really a aren't to spend promotion.

out to well. us allows it So filter as those

right that believe important everybody. of driver it's an net-net, So for profitability. We it's don't

we're XXX% We third as don't -- of we the target of heard earlier, a now. something you a have like GMV So penetration.

are So because countries of than which majority hard see would in it's higher different But it are lower our some representing There that quite times which at some the and this started be to the highly are penetrated. they customers. rollout.

we're loyalty that grow, value frequently. to who that are those manage and the ways retention it of subscription achieve impacting seeking use price naturally target all which offer, probably have to naturally opportunity And less it, we don't as our starts without So can segments packages us order in we we use plenty times. will inclination that the to tweak that those to that to the in there offer many, that many us the ability have the

helpful. Hope the cater market. to So we for have able whole to be that's

on I to incentives. the think Peter is the going guidance about talk

Yeah. Sure.

two-wheel perspective. lot make incentives, on Mark, mobility. those did about given really and incremental in affordability, strong some like mobility a lot a did the as of the cases, around that Grab things in Yes, marketplace enhance these the up demand you we talked of And mobility that it some is Share, we on new that XX (ph) that basis Q-on-Q used continue So highlighted is product we in critical reinvestments to driving in we Philippines platform business. was We especially like launched the points margins things also efficiency. -- are

the we're with the also, Q-on-Q balancing time same high incentives margin. the At

can targets. platform on margin liquidity is one also -- sure efficiency but that sure also the maintaining how making make equal, So keeping we the we our eye we're enhance margin

the mobility, for on quarter. tell we can at you landed XX.X% As

Mark? through theme, regarding how deliveries, platform that around you And think that be your quarters -- mobility marketplace it's of actually, side see other XX% mobility the whether uses deliveries there or balance whether we will the target of about in if question take answers down. your question up to it margins, we efficiency think incentives balancing plus. and you margin on that some other the go it's may or incentives it's while between do similar where we're our that X% very But or Hope overall, with

you, Peter. Thank you, Thank Alex.

Thanks, Mark.

you. Thank

Please ahead. of Salgaonkar go Sachin, your from question is today from America. Sachin Bank comes open. last Our now line

opportunity high how terms the Thank Two One, I you are the for on me. bit to that look looking Hi. of numbers. Clearly, to I bar questions how utilizing wanted bit on on to wanted understand a understand understand here on could we to I from to ahead? breakeven. close take in just you you on very to directionally, adjusted of and a a congrats rate guys you now that declined Anything guys there. already sheet? And cash And your balance the M&A. mentioned read great [indiscernible] wanted have set this expect at going delivery and EBITDA basis. are Q-o-Q that second, one a more a

Sachin. Sure,

questions. Let both me take

how the on a So cash we deploy position, you take can of very prudent -- always we're terms tell, our we capital. in approach as

comes transaction deploying mentioned have a unless can value. also rate enhance to and a earlier, to the high shareholder long-term when capital. do high it our you degree there's particular hurdle very want Alex conviction of how As a we do We

that framework it is continue to to approach our hurdle will allocation comes And critical we'll Cash take and maintaining capital when to that important will So be preservation high for us. maintained. rate be prudent. also continue and

take of look, rate, read to lot there's it. terms into a In not

we're no fluctuate from and big rate track. quarter-on-quarter. take of terms in to take Our overall, continues There's how But be different rate can there strong. mixes was on obviously swings a

comments I to And going costs And I you Do improve There regional a read it. I corporate corporate one sir, the comments of Do are some Got decrease? was expect regional correctly? that just in increase ahead. on to costs. half small it second the think to clarification get. wanted or

lower be versus What in the I second will costs said was first corporate regional the half. the half

you. it. Thank Got

Thank you, Sachin.

like session. our back question-and-answer Thank remarks. would to turn you. Peter the conference over for any concludes I to now closing This now

for the everyone, call thanks, Well, taking our join time to today.

everyone. please If to our you, you you Investor out to questions, Relations free can visit still Great. feel Investor Relations Thank website. or reach our have team

Thank you.

Thank you.

This concludes XXXX for second you Thank participation. your conference call. quarter Grab's earnings

disconnect now may You your lines.