Grab Holdings Limited

Ladies and gentlemen, thank you for joining us today. My name is Ada, and I will be your conference operator for this session. Welcome to GRAB's second quarter 2024 earnings results call. After speaker's remarks, there will be a questions and answer session. I will now turn it over to Douglas Yu to start the call.

Good day, everyone, and welcome to GRAB's second quarter 2024 earnings call. I'm Douglas Yu, Director of Investor Relations and Strategic Finance at Grab, and joining me today are Anthony Tan, Chief Executive Officer, Alex Hungate, Chief Operating Officer, and Peter Owee, Chief Financial Officer. During the call today, Anthony will discuss our key strategic and business achievements, followed by Alex, who will provide operational highlights, and Peter will share details of our second quarter 2024 financial results. Following the prepared remarks, we will open the call to questions. During this call, we will be making forward-looking statements about future events, including our future business and financial performance. These statements are based on our current beliefs and expectations. Actual results could differ materially due to a number of risks and uncertainties as described on this earnings call, in the earnings release, and in our Form 20F, and other filings with the SEC. We do not undertake any duty to update any forward-looking statements. We will also be discussing non-IFRS financial measures on this call. These measures supplement, but do not replace IFRS financial measures. Please refer to the earnings materials for reconciliation of non-IFRS to IFRS financial measures. For more information, please refer to our earnings press release and supplemental presentation available on our IR website. And with that, I will turn a call over to Anthony to deliver his remarks.

Thanks, Doug. Thank you for joining us today. During the quarter, we focused on leveraging our platform scale to drive profitable growth. On demand GMV, group monthly transacting uses, and group revenues hit new all-time highs. All our on-demand transactions actually grew strongly at 22% year-on-year. We also delivered our 10th consecutive quarter of group adjusted EBITDA improvement, even as we invested into new products and faced foreign currency headwinds. This underscores our relentless focus on generating sustainable and profitable growth scale and long term. And as we balance growth and cost discipline, we achieved our second quarter of positive adjusted free cash flow, giving us the confidence for adjusted free cash flow to turn positive for the full year of 2024. As a company, we're committed to deliver the best value and service quality for our platform users and partners. Our strategy to be product and tech led has been key to unlocking platform growth. During the quarter, we rolled out more affordable and high-value offerings across mobility and deliveries to meet the diverse needs of our users. We also focus on providing more tailored solutions to our users. For example, family accounts, advance booking, group orders, and dine-out deals are nascent products today, but have begun to gain strong traction and bring greater convenience for our users. At the same time, Grab Unlimited, our subscriptions program, hit a new all-time high in total subscribers in the quarter. On the banks, we had a public launch of Superbank in June, our digital bank in Indonesia. With all the three digital banks now fully operational together with GrabFin, our fintech platform, we are very excited about our opportunities to continue driving financial inclusion across the region. Our DG Bank deposits, lending dispersals, and total customers across GrabFin and our DG Banks continue to demonstrate robust growth, reflecting the trust our users have placed in us. Deposits in GXS Bank in Singapore and GX Bank in Malaysia grew substantially by over 50% quarter-and-quarter to $730 million. with total loan dispersals across GrabFin and our DG Banks hitting an annualized run rate of $2 billion in the second quarter. The strong growth across our financial services platform is underpinned by the ability to leverage the scale of the Grab ecosystem. For our DG Bank in Malaysia, for instance, approximately one in two GX Bank users transact on Grab with their GX Bank account. And in less than a year since its public launch, GX Bank has over 750,000 deposit customers, which include more than 500,000 GX Bank debit card holders as of July 2024. Su Bank also crossed 1 million deposit customers in August, in less than two months following its public launch in June. As we look towards the second half of 2024 and beyond, we will embrace a three-pronged approach to continue outserving our users and ecosystem partners across the region. First, we will continue dedicating our efforts to scaling our ecosystem. We are bullish on the long-term growth outlook of Southeast Asia, with economists forecasting mid-term GDP growth rates in the region to be faster than the world average, and against a backdrop of stronger inbound tourism flows and strengthening domestic demand. To capture this growth, we'll leverage all of our assets to our advantage, be it improving the selection of affordable or high-value offerings on our on-demand platform and driving cross-sell opportunities across our various services. Second, and as we have actually shared previously, we will continue to be AI-led in driving platform and profitable growth. By doing so, we will solve the most impactful everyday problems in Southeast Asia in the fastest way possible to deliver value creation for our shareholders and generate sustainable free cash flow. At the same time, we are continuing our investment in the generative AI to drive efficiency gains across our business and deliver innovative customer and partner experiences. For example, we have rolled out AI-powered dish descriptions in five out of eight markets at scale. Our experiments have shown a significant improvement in checkout rates from our long-tail merchant partners that used AI-generated descriptions. This is but one of many examples of the way we are leveraging foundational AI capabilities and generative AI to continue to improve our marketplace. And finally, we will continue to drive cost discipline across our business. Regional corporate costs in the second quarter declined 14% year-on-year, So our intention here is clear. By striving to build a lean and agile organization, we will be in pole position to outserve not only our ecosystem and users, but also improve shareholder returns by continuing to generate profitable growth and sustainable free cash flow. Before I pass the time over to Alex, I'm also pleased to announce that we've published our latest ESG report demonstrating our steadfast commitment to delivering a triple bottom line business. We firmly believe the long-term success of our business is intricately linked to the welfare of the communities we serve and the health of our planet. And in this regard, my heart goes out to all those who are affected by typhoon Gemi and other adverse weather events across the region. Grab's commitment during challenging times like this is to respond quickly in any way we can to help governments, our driver and merchant partners, as well as our users. and to play our part in supporting recovery post calamity. For our communities in the Philippines, there were particularly hard hit by typhoon. We activated our assistance program to provide support to our partners affected by the severe weather. Additionally, we utilize grab maps and real-time reports from our fleets to help our partners navigate safely through affected areas. Now as Gemi has moved on, we're partnering organizations like Jollibee Food Group and McDonald's and Red Cross for our users to donate their Grab Rewards points towards recovery efforts. From our hearts, we are grateful for all these partners who came together quickly to serve our community during and post a calamity. I'll now hand over the time over to Alex, who will cover our second quarter operational highlights in more detail.