Results & Outlook

FY2023 :-

Revenue : $2.36B (65% growth over FY2022)

Adjusted EBITDA : -$0.02B (versus - $0.8B in FY2022)

FY2024 Outlook:

Revenue : $2.7B to $2.75B (14%-17% YOY growth over FY2023)

Adjusted EBITDA : $0.18B to $0.2B

At current market capitalization of $12.4B, it is trading at 62 times FY2024 adjusted EBITDA. Pretty high multiple.

Based on the guided outlook, it appears that GRAB is no longer seeing high growth rate of 30% or more for all its business segment. That means the market segment it operates in is probably seeing a saturation point or maturity. If that is the case, its future income or free cashflow improvement will have to come from operational efficiency rather than from high revenue growth.

For those who buy this stock for its growth story, it is no longer the case and therefore a sell. Grab now has to deliver real profits and free cashflow to justify its valuation failing which it will be punished by the market. The use of $0.5B to do share buyback affirmed to the market that it doesn't have any ideas to use its excess cash to put into its existing growth assets to grow its business but rather use it to buy its own stock!