Grab suffers $1.34b net loss in Q3
This is a 59% decrease in net profit, YoY.
Grab posted an approximately $1.34b (US$988m) net loss, the company revealed in its recently released Third Quarter 2021 Results.
The group attributed this loss to non-cash expenses, which amount to around $1b (US$748m). Included in this is interest accrued on Grab’s convertible redeemable preference shares, stock-based compensation, and fair value changes on investments.
A portion of these non-cash expenses, however, is expected to cease after the business combination.
Other losses for the company include revenue, which was down 9% year-on-year (YoY) to $213m (US$157m), due to the lockdowns in Vietnam. The revenue reported consists of a net of consumer, merchant, and driver-partner incentives.
Earnings before interest, taxes, depreciation, and amortisation, at $287.4m (US$212m), followed the YoY downward trend due to movement restrictions. This observed value was down $115m (US$85m); but was up $2.7m (US$2m) on a quarter-on-quarter basis.
Monthly transacting users also experienced a decline by 8% YoY mostly due to lockdowns across Vietnam between July and September 2021.
Deliveries gross merchandise value (GMV) also echoed this growth with an increase of 63% YoY to $3.1b (US$2.3b). This offset a 30% YoY decline in mobility GMV due to movement restrictions in place due to COVID-19.
Anthony Tan, Group CEO and co-founder, however, expressed optimism for the coming quarter. “With the recovery in sight, and the gradual reopening of economies providing tailwinds to our business, we are doubling down on investments that will help us capture a greater share of the opportunities in front of us and open up new addressable markets for Grab, such as groceries."