Great Q4'22 Results? Time to Grab some Grab stocks?
GrabHoldings Ltd(NASDAQ: GRAB$Grab Holdings(GRAB)$ ) share prices has not been great ever since it went lpo.
But its latest set of results might spell a change in fortune.
Here are some key notes from its latest quarter results.
1. Improvements & growth in key metrics
Grab has slowly evolved from a pure mobility app to also incorporate e- commerce,making it a Super app. On top of good revenue growth, it also needsto ensure that Gross Merchandise Value (GMV) is growing as well
Revenue was higher by 112% YoY, with GMV continuing to grow by 24%. With higher borrowing costs, the race for proftability for all tech
companies became a key aspect. Grab's EBITA loss improved by 6% YoY or a +127 basis points improvement YoY.
2. Improving EBITDA margins each successive quarter
Grab's adjusted EBITDA margins over its GMV have been improving successively for the past few quarters.
This does look promising, but do note that adjusted EBITDA as specifed by Grab in the footnotes does not include net income or expenses, depreciation, amortization, and stock-based compensation.
This trend though does suggest that from an operating perspective, at least Grab is cruising toward operating profitability.
3. Increasing Monthly Transacting Users(MTU)
All successful apps and platforms will share either their daily active users, monthly active users, or both. For Grab, its FY 2022 monthly transacting users(MTU) increased from 571 million to 610 million, which is a 16% growth.
GMVper MTU also eked up higher by 7%. That means that an average monthlytransacting user can spend up to USD 610 on Grab!
My Verdict
Grab hascertainly come a long way, from its humble origins to becoming South East Asia's super app. Its pivot and rapid growth during the pandemic have been a perfect combination.
Even post-pandemic, the convenience that many of us enjoyed still sticks with us. Why spend time and money, when money alone can buy convenience and save time?
Perhaps a breakeven fiscal year is all that Grab needs, to see share prices going back up to its glory days?
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