Grab Holdings Limited

Ladies and gentlemen, thank you for joining us today. My name is Maxine Campbell, and I will be your conference operator for this session. Welcome to Grab's third quarter 2022 earnings results. After the speaker's remarks, there will be a question and answer session. I will now turn it over to Vivian Tong to start the call.

Good day, everyone, and welcome to Grab's third quarter 2022 earnings presentation. I'm Vivian Tong, head of U.S. investor relations at Grab. And joining me today are Anthony Tan, Chief Executive Officer, Peter Owee, Chief Financial Officer, and Alex Hungate, Chief Operating Officer. During the call today, Anthony will discuss our key business updates, and Peter will share details of our third quarter 2022 financial results. Following prepared remarks, we will open the call to questions where Anthony, Peter, and I will respond to the Q&A. As a reminder, today's call is a forward-looking statement about the future of business and financial performance. These statements are based on our beliefs and expectations as of today. Actual events and results could differ materially due to a number of risks and uncertainties, including macroeconomic, industry, business, regulatory, and other risks, which are described in our form F1 registration statement and other filings with the SEC. We do not undertake any obligation to update any forward-looking statements. The discussion today also contains non-IFRS financial measures, which should be considered together with rather than as substitutes for IFRS financial measures. A reconciliation of non-IFRS to IFRS financial measures is included in this quarter's earnings material. For more information and additional disclosures on recent business performance, please refer to our earnings press release and supplemental presentation for a detailed third quarter 2022 financial review, which can be found on our IRR website. Should you have any questions after this presentation, please reach out to investor.relations at grab.com. And with that, I will turn the call over to Anthony to deliver his opening remarks.

Thank you, everyone, for joining us today. I'm pleased to report a strong set of third quarter results. On a year-on-year basis, group revenue was up over 140%, and loss for the period improved substantially both year-on-year and quarter-on-quarter. Monthly transacting users also grew 30% year-on-year, accelerating from 12% and 10% in the previous two quarters. In a quarter, we achieved an important milestone. Greater optimization of our incentive spend has resulted in our deliveries turning segment-adjusted EBITDA positive for the first time, three quarters ahead of our guidance. We also crossed our 10 billionth ride and deliveries mark in July, just five years after we managed 1 billion rides. We achieved these results by innovating to reduce our cost to serve and staying focused on growing and retaining high-quality users. As we look to scale our ecosystem profitably, we're also committed to adapting our product portfolio to meet the needs of the various consumer segments in this broad-based market. Looking ahead, we're keenly monitoring the macroeconomic uncertainty. Inflation, currency fluctuations, and recessionary risks pose challenges to most businesses. But we remain optimistic about Southeast Asia's growth prospects that are underpinned by a rising tide of digitalization and an expanding consumer class. I'll now give an overview of our performance before turning it over to Peter, who will give details on our outlook and financials. In the quarter, revenue in GMV for mobility recorded strong growth, doubling from the same period a year ago. on robust demand and recovering driver supply. We are heartened by the demand recovery trends we see in many of our markets. Economies have opened, travel has resumed, and people are heading back to offices. Fulfilment rates, a measure of how well we match demand and supply on our platform, was near pre-COVID levels. The improvement in fulfilment rates is a result of our efforts to improve driver supply and productivity. Since the start of the year, we streamlined the onboarding process for drivers to allow them to start driving on Grab quicker. We're also improving outreach to potential driver partners and making it easier for them to lease cars by partnering with car rental companies. This groundwork is essential to accelerating the momentum in our mobility business. With our mobility supply at 80% of where we were pre-COVID, there's still headroom for us to capture the strong demand recovery coming back online. Looking ahead, we'll continue to innovate on our mobility services to meet the needs of our consumers and invest in platform enhancements to speed up driver-partner onboarding and improve productivity. For example, we rolled out affordable mobility solutions to meet consumer needs. In the Philippines, we relaunched GrabShare, an on-demand car pooling service And in Indonesia, we launched an affordable short-distance two-wheel mobility service. For our deliveries business, we saw solid growth despite the normalization of food delivery demand and our continued focus on cultivating and retaining high-quality users. In the quarter, revenue for deliveries tripled compared to the same period a year ago as we optimized our incentive spend and launched product enhancements to reduce our cost to serve. We maintained our category leadership position in food delivery despite tapering incentives. We saw our food business and delivery segment reach adjusted EBITDA break-even in the third quarter, three quarters ahead of schedule for deliveries and two quarters ahead for food. This key milestone puts us on a stronger footing to pursue long-term growth opportunities within the delivery segment and sets us well on track to reach our target of 3 plus percent for margins. In food delivery, we will continue to capture and retain high-quality users by offering them a wide variety of merchants and a superior app experience. At the same time, we are building out different services and launching product enhancements to cater to users seeking affordable options. For non-food deliveries, we are building a portfolio approach towards our grocery segment. In some markets, like Malaysia, where we found a fit with our acquisition of Jaya Grocer, we can offer an end-to-end grocery retail experience within our app. In other markets, we are exploring partnerships. For example, we recently announced a partnership with TransRetail, one of Indonesia's largest grocery retailers. Lastly, we believe our combined deliveries offerings together with our mobility services allows us to offer attractive ecosystem-wide subscription plans. In the quarter, we saw positive traction for Grab Unlimited, our ecosystem-wide subscription program. Looking ahead, we see steady performance of our delivery segment, even as food delivery demand continues to normalize in a post-COVID world. We are confident that our strategy of adapting our offerings to cater to the different consumer segments allows us to cater to a broad-based market, which will enable us to continue to drive profitable growth. Moving on to financial services, revenue growth for overall financial services grew by 44% year-on-year, driven by higher contributions from our lending business. As we discussed during our investor day, our focus on ecosystem transactions has started to bear fruit. Our financial services segment adjusted EBITDA improved 9% quarter-on-quarter. Stripping out Digibank costs, GrabFin segment expenses in the third quarter declined by 4% quarter-on-quarter. Loan disbursements for the quarter rose 121% year-on-year as we ramped up our ecosystem lending, such as loans to driver partners, while maintaining a low single-digit NPL ratio. Our focus on ecosystem-supportive financial services and driving off-platform transactions that have positive margins will allow us to improve this segment's overall margins and revenue. I'd also like to give an update on our DG Banks. At the end of August, the GXS Bank conducted a soft launch in Singapore with a small pool of users. The GXS Bank is the first of the three DG Banks we plan to launch in the region by end 2023. We are optimistic that these three DG banks, one in Singapore, one in Malaysia, and one in Indonesia, will augment our financial services offerings and grow financial inclusion in Southeast Asia. Lastly, I want to go over our enterprise segment. In the third quarter, our enterprise revenue rose 113% year-on-year, driven by gains in our advertising business. During our Investor Day in September, we spoke about the importance of enabling merchants through our ecosystem by helping them come online or grow their business. Advertising sits at the heart of this. By giving merchants access to data-driven targeting tools, we can help them get better returns from their advertising. This, in turn, helps them do better as a business, which brings in more revenue for us. Those merchants are getting better. four to seven times returns on your advertising spend on Grab in the third quarter this year. This makes Grab an effective performance advertising tool that helps businesses grow. As we look ahead, we remain confident in the mobility business recovery and we see a continued stabilization of our deliveries business. Achieving segment-adjusted EBITDA breakeven for food and deliveries puts the win in our sales as we continue to drive for profitable growth. I'll now turn the call over to Peter to deliver a review of the financials.