Q3 2023 Grab Holdings Limited Earnings Call
Speaker 1: Ladies and gentlemen, thank you for joining us today. My name is Adam and I will be your conference operator for this session. Welcome to Grab's third quarter 2023 earnings results call. After the speaker's remarks, there will be a question and answer session. I will now turn it over to Dr Hugh to start the conversation.
Ladies and gentlemen, thank you for joining US today My name is Adam and I will be your conference all parts shipped for this session welcome to crops third quarter 'twenty two 'twenty three earnings resolves co. After the Speakers' remarks, there will be a question and answer session.
I'll now turn it over to Douglas to South Dakota.
Good day, everyone and welcome to grabs third quarter 2023 earnings call I'm Douglas you head of Asia Investor Relations I grabbed and joining me today are Anthony <unk>, Chief Executive Officer, Alex <unk>, Chief operating Officer, and Peter <unk>, Chief Financial Officer during.
Speaker 2: Good day, everyone, and welcome to Grab's third quarter 2023 earnings call. I'm Douglas Yu, head of Asian investor relations at Grab. And joining me today are Anthony Tan, chief executive officer, Alex Congate, chief operating officer, and Peter Oe, chief financial officer.
Speaker 2: During the call today, Alex will discuss our operational highlights, followed by Peter, who will share details of our third quarter 2023 financial results, and Anthony will then discuss our strategic outlook.
During the call today, Alex will discuss our operational highlights followed by Peter who will share details of our third quarter 2000, <unk> financial results and Anthony will then discuss our strategic outlook. Following the prepared remarks, we will open the call to questions. As a reminder, today's discussion contains forward looking statements about the companys future business and financial performance. These statements.
Speaker 2: Following the prepared remarks, we will open the call to questions. As a reminder, today's discussion contains four looking statements about the company's future 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 20F for the year ended December 31, 2022, and other violence at the SEC.
Or 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 20-F for the year ended December 31, 2022, and other filings with the SEC.
Speaker 2: 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.
We do not undertake any obligation to update any forward looking statements. The discussion today also contains non <unk> financial measures, which should be considered together with Ryder Dennis substitute for <unk> financial measures. A reconciliation of non <unk> financial measures is included in this quarter's earnings materials for more information and additional disclosures on recent bid.
Speaker 2: 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 2023 financial review, which can be found on our website. And with that, I will turn the call over to Alex to deliver his remarks.
Performance. Please refer to our earnings press release and supplemental presentation for detailed third quarter 2023 financial review, which can be found on our IR website and with that I will turn the call over to Alex to deliver his remarks.
Thanks, Doug and thanks for joining us today everybody.
Speaker 3: I'm pleased to share that we reported a strong set of results this quarter. Grab has reported positive, group adjusted, EBITDA for the first time. And while this is an important milestone, it represents just one step in our journey as a public company.
I'm pleased to share that we reported a strong set of results this quarter grab as reported positive group adjusted EBIT for the first time.
And while this is an important milestone it represents just one step in our journey as a public company.
At the same time, our top line continues to grow from strength to strength.
Speaker 3: At the same time, our top line continues to grow from strength to strength.
Speaker 3: Revenues are up 61% year on year and 8% quarter on quarter, while group MTUs hit another all-time high.
Revenues are up 61% year on year, and 8% quarter on quarter, while group empty use hit another all time high.
Speaker 3: Over the next few minutes, I will share the operational highlights across each of our segments and the underlying drivers of these results.
Over the next few minutes I will share the operational highlights across each of our segments and the underlying drivers of these results.
Speaker 3: So starting with deliveries, last quarter we reached an all time high for Deliver as GMV and mentioned that we expected to achieve sequential growth is called..
So starting with deliveries.
Last quarter, we reached an all time high for deliveries GMB and mentioned that we expected to achieve sequential growth this quarter.
Speaker 3: In the third quarter, we not only continue to drive sequential GMV growth to another all-time quarterly high,
In the third quarter, we not only continue to drive sequential GMB growth to another all time quarterly high.
Speaker 3: But at the same time, we continue to improve profitability, with deliveries adjusted even though our margins improving to 3.4%, all the while maintaining our leading category position across the region.
But at the same time, we continue to improve profitability with deliveries adjusted EBITDA margins improving to three 4%.
All the while maintaining a leading category position across the region.
Our ability to drive both topline and bottom line improvements while deepening our market penetration is a result of the following key initiatives first we've made progress on reducing our cost to serve to improve the affordable products and services for users while enhancing partner earnings.
Speaker 3: Our ability to drive both top line and bottom line improvements, while deepening the market penetration is a result of the following key initiatives.
Speaker 3: First, we've made progress on reducing our cost to serve to improve the affordability of our products and services for users while enhancing partner earnings.
Speaker 3: We built a strong competitive mode by leveraging our scale, category leadership position, and tech advantage to create the best in-class experiences for our users and partners. For example, batched orders, which now account for over a third of delivery orders, provided average delivery fees for users that were 8% lower than unbatched orders, and resulted in 5% higher driver earnings per transit hour compared to unbatched orders.
We built a strong competitive moat by leveraging our scale category leadership position and take advantage to create the best in class experiences for our users and partners for.
For example, batched orders, which now account for over a third of deliveries orders provided average delivery fees for users that were 8% lower than unmatched orders and resulted in 5% higher drive the earnings per transit tower compared to unmatched orders.
Speaker 3: Improved allocation and navigation efficiencies among other factors also resulted in a corresponding reduction in driver wait times by 72% year on year and 47% quarter on quarter.
Improved allocation in navigation efficiencies. Among other factors also resulted in a corresponding reduction in drive a wait times by 72% year on year and 47% quarter on quarter.
Second we continue to deepen user engagement through grab unlimited subscription program.
Speaker 3: Second, we continue to deepen user engagement through Grab Unlimited, our subscription program.
Speaker 3: Grab unlimited subscribers continue to account for a third of Deliverers GNV during the quarter and spend 4.2 times more on food deliveries than non-subscribers.
Grab unlimited subscribers continued to account for a third of deliveries GNC during the quarter and spent $4 two times more on food deliveries than non subscribers.
We also saw frequency and retention uplifts among subscribers with.
Speaker 3: We also saw frequency and retention uplifts among subscribers.
Speaker 3: with six months retention of subscribers on the program continuing to be around two times higher than non-subscribers.
With six month retention of subscribers on the program continuing to be around two times higher than non subscribers.
Speaker 3: We will continue to expand our suite of affordability features at different price points to appeal to more consumer segments, all without compromising on our service quality and reliability.
We will continue to expand our suite of affordability features at different price points to appeal to more consumer segments, all without compromising on our service quality and reliability.
Speaker 3: Save a delivery is now available in all six of our core markets and in over 130 cities.
Save a delivery is now available in all six of our core markets and then over 130 cities.
Speaker 3: In Malaysia and Singapore, where the services were first launched, the penetration of SAVA has now reached over one third of deliveries MTUs.
In Malaysia, and Singapore, where the services were first launched the penetration of Saba has now reached over one third of deliveries and to use.
We've shown that more affordable features not only benefit consumers, but also expand revenue streams for our merchant and drive our partners who benefit from an increased demand for our services.
Speaker 3: We've shown that more affordable features, not only benefit consumers, but also expand revenue streams for our merchant and driver partners who benefit from the increased demand for our service.
Looking ahead to the fourth quarter, we expect to drive another quarter of sequential deliveries GMB growth to achieve another quarterly record high.
Speaker 3: Looking ahead to the fourth quarter, we expect to drive another quarter of sequential deliveries GMV growth to achieve another quarterly record high.
As we continue to strike a balance between growth and profitability. We expect segment margins in the fourth quarter to be consistent with those in the third quarter.
Speaker 3: As we continue to strike a balance between growth and profitability, we expect segment margins in the fourth quarter to be consistent with those in the third quarter.
Okay.
Speaker 3: Now moving on to mobility. Mobility, GMV, and revenue in the third quarter grew strongly year on year, while we maintained margins at 12% plus.
Now moving onto mobility mobility, <unk> and revenue in the third quarter grew strongly year on year, while we maintained margins at 12% plus.
Speaker 3: Demand continues to be robust as we see quarter on quarter and year on year growth in mobility has nearly assimilated into youth.
Demand continues to be robust as we see quarter on quarter and year on year growth in mobility and to use.
We are also encouraged by mobility transactions growing 37% year on year, and 12% quarter on quarter, which gives us the confidence that our affordability led strategies are paying off.
Speaker 3: We are also encouraged by mobility transactions growing 37% year on year and 12% quarter on quarter, which gives us the confidence that our affordability led strategies are paying off.
Domestic demand continues to pick up across our markets. While international travel demand also continues to recover airport rides grew 9% year on year to reach 84% of pre COVID-19 levels.
Speaker 3: Domestic demand continues to pick up across our markets, while international travel demand also continues to recover. Airport rides grew 9% year on year to reach 84% of pre-COVID level.
Our efforts to capture the rebound in tourism through travel of features that we launched earlier. This year has started to bear fruit with a number of rides booked through early pay wechat, cacao tripped up com and booking dot com growing 61% quarter on quarter.
Speaker 3: Our efforts to capture the rebound in tourism through traveller features that we launched earlier this year had started to bear fruit. With a number of rides booked through Alipay, WeChat, Cacao, Tript.com and Booking.com, growing 61% quarter on quarter.
Overall mobility GNP is now at 91% of pre Covid levels.
Speaker 3: Overall, mobility GMV is now at 91% of pre-COVID level.
When we compare mobility empty use between third quarter of 2023 in the same period in 2019, the majority of our core markets have surpassed those levels already.
Speaker 3: When we compare mobility MTUs between 3rd quarter 2023 and the same period in 2019, the majority of our core markets have surpassed those levels already.
Speaker 3: Our efforts to improve driver supply to meet the growing demand continues to gain traction. During the third quarter monthly active driver supply grew 9% year on year, with supply levels now at 87% of pre-COVID.
Our efforts to improve driver supply to meet the growing demand continues to gain traction during the third quarter monthly active driver supply grew 9% year on year with supply levels now at 87% of pre Covid.
Speaker 3: Following our agreement to acquire 100% of the shares in Trans-Syria in July , the acquisition remains under review in Singapore.
Following our agreement to acquire 100% of the shares in China have in July the acquisition remains under review in Singapore.
Speaker 3: We believe that proposed acquisition is a win-win situation for consumers and drivers in Singapore.
We believe that the proposed acquisition is a win win situation for consumers and drivers in Singapore.
Speaker 3: For TransCab taxi drivers, Grab will continue to preserve their flexibility to earn through Grab or other ride-hailing platforms, as well as to conduct street-hail while investing in tech solutions to serve them better.
For Transcatheter taxi drivers grab will continue to preserve their flexibility to earn through grab or other ride hailing platforms as well as to conduct street tail, while investing in tech solutions to serve them better.
Speaker 3: And for our passengers by boosting the number of drivers on our platform and helping them to operate more efficiently, we can also improve how quickly and reliably we find a ride for our passengers whenever they need one.
And for our passengers by boosting the number of drivers on our platform and helping them to operate more efficiently. We can also improve how quickly and reliably we find a right for our passengers whenever they need one.
Speaker 3: Additionally, we continue to enhance the affordability of our services through greater efficiencies while improving driver earnings on our platform. The relaunch of Move It, our two-wheel mobility offering in the Philippines, has gained meaningful traction.
Additionally, we continued to enhance the affordability of our services through greater efficiencies, while improving driver earnings on our platform.
The relaunch of move at our two wheel mobility offering in the Philippines has gained meaningful traction.
Speaker 3: Driving mobility M.T.U.s and transactions growth in that market by 18% and 28% quarter on quarter respectively.
Driving mobility and to use and transactions growth in that market by 18% and 28% quarter on quarter respectively.
Speaker 3: Our efforts to enhance driver efficiency by leveraging our technology continue to bear fruit.
Our efforts to enhance driver efficiency by leveraging our technology continue to bear fruit.
Speaker 3: Search mobility rides further reduced by 243 basis points year on year and 111 basis points quarter on quarter
Serge mobility rides further reduced by 243 basis points year on year, and 111 basis points quarter on quarter.
Speaker 3: Driver earnings per transit hour continue to increase by 8% year on year and quarterly retention rates of our active driver partners remained healthy at 90%.
Driving earnings per trends at our continue to increase by 8% year on year and quarterly retention rates of our active driver partners remained healthy at 90%.
We expect sequential growth for mobility heading into the year and as we drive demand from travelers and local communities.
Speaker 3: We expect sequential growth for mobility heading into the year end as we drive demand from travellers and local commuters.
We maintain our expectations for mobility to exit 2023.
Speaker 3: We maintain our expectations for mobility to exit 2023 around pre-COVID-GMV level.
Around pre Covid <unk> levels.
Speaker 3: while we maintain segment adjusted EBITDA margins at a similar level as the third quarter.
While we maintain segment adjusted EBITDA margins at a similar level as the third quarter.
Next onto financial services.
Speaker 3: Revenues more than doubled year on year and grew 24% quarter on quarter as we scaled up our ecosystem payments and lending this
Revenues more than doubled year on year and grew 24% quarter on quarter, as we scaled up our ecosystem payments and lending business.
Speaker 3: Total loan disbursements year to date grew 52% year on year to around $1 billion. And we ended the quarter with 275 million of loans outstanding. Supported by a continued pickup in ecosystem lending from Grab Fin and new Flexi loan volumes from GXS Bank in Singapore.
Loan disbursements year to date grew 52% year on year to around $1 billion and.
And we ended the quarter with $275 million of loans outstanding supported by a continued pickup in ecosystem lending from grabbed Finn and new flexi loan volumes from <unk> Bank in Singapore.
Speaker 3: while NPL ratios continue to be stable at low single digits.
While NPL ratio has continued to be stable at low single digits.
Speaker 3: Customer deposits in GXS, our Singapore Digibank, continue to track upwards quarter on quarter, reaching $362 million, following the increase of the maximum deposit amount per account, from $5,000 to $75,000 Singapore dollars in July .
Customer deposits and GSS, our Singapore did you.
Okay.
The strong quarter reached $366 million.
Following the increase of the maximum deposited amounts per account from 5000 to 75000, Singapore dollars in July.
Segment, adjusted EBITA losses narrowed year on year and quarter on the back of cost savings and grabbed Finn.
Speaker 3: Segment Adjusted EBITDA losses narrowed year on year and quarter on the back of cost savings in Grap Finn.
Speaker 3: We continue to see strong ecosystem uplifts from our payments and lending business, with users from GrabPay spending four times more and having 1.5 times higher retention rates than cash users.
We continue to see strong ecosystem uplift from our payments and lending business with users from grab pay spending four times more than having one five times higher retention rates than cash uses.
Speaker 3: Our driver partners who take on alone with us also recorded 1.5 times higher retention compared to drivers without a loan.
Our driver partners who've taken a loan with US also recorded $1 five times higher retention compared to drivers without alone.
I also want to provide some operational updates on our upcoming Digi bank launches, which remain on track for this year in.
Speaker 3: I also want to provide some operational updates on our upcoming Digibank launches, which remain on track for this year. In September , our Malaysian Digibank GX Bank received approvals by the regulators in Malaysia to commence operations.
In September our Malaysia, <unk> Bank <unk> Bank received approvals by the regulators in Malaysia to commence operations and last month Cacao Bank, South Korea's leading digital bank also announced that invested in a 10% stake in Super Bank, Our Indonesian Bank affiliate.
Speaker 3: And last month, Kakao Bank, South Korea's leading digital bank also announced that invested in a 10% stake in super bank, our Indonesian bank affiliates.
Speaker 3: We're excited about this strategic partnership. Kakao Bank ranks first in terms of loans and deposit amongst the Korean digital banks and has 21.7 million customers and 17.4 million monthly active users higher than any other bank in South Korea.
We're excited about this strategic partnership cacao bank ranks first in terms of loans and deposits amongst the Korean digital banks and has $21 7 million customers and $17 4 million monthly active users higher than any other bank in South Korea.
Speaker 3: We look forward to leveraging Cacao banks, the methodically proven competitiveness and digital finance and platform expertise to boost super banks' proposition and drive digital banking innovation in Indonesia.
We look forward to leveraging <unk> banks domestically proven competitiveness in digital finance and platform expertise to boost superbanks proposition and drive digital banking innovation in Indonesia.
Speaker 3: Finally, on our enterprise and new initiative segments, year on year, revenues nearly doubled, while segmented just a little bit are almost tripled, as we continue to drive adoption of our advertising self-service platform amongst our merchant partners, while improving monetization.
Finally on our enterprise or new initiatives segment year on year revenues nearly doubled.
Our segment adjusted EBITDA almost tripled as we continue to drive adoption of advertising self service platform amongst our merchant partners, while improving monetization.
Speaker 3: During the quarter, we saw the total number of active advertisers joining our service platform, grow by 83% year on year, which highlights the value that our ads platform brings to our merchant partners. We also saw average advertising spend from merchants on our service platform increase 44% here, while return on ad spend has also stabilized at healthy levels.
During the quarter, we saw the total number of active advertisers joining our self service platform grew by 83% year on year, which highlights the value that our ads platform brings to our merchant partners.
We also saw average advertising spend from merchants on our self service platform increased 44%.
While return on AD spend has also stabilized at healthy levels.
Speaker 3: Looking ahead, we remain focused on deepening merchant engagement with our advertising services and driving value uplift for our merchant partners and other top brands. We are also confident that we will be able to push advertising revenues above 1% of Deliris GMV in the medium term.
Looking ahead, we remain focused on deepening merchant engagement with our advertising services and driving value uplift for our merchant partners and other top brands. We are also confident that we will be able to push advertising revenues above 1% of delivery <unk> in the medium term.
Now as we look to the remainder of 2023 and into 2024, we remain optimistic that we can sustain the growth trajectory of our mobility and delivery businesses as we drive affordability by leveraging the scale of a leading category position.
Speaker 3: Now as we look to the remainder of 2023 and into 2024, we remain optimistic that we can sustain the growth trajectory of our mobility and delivery businesses as we drive affordability by leveraging the scale of our leading category position. We also see ample opportunities to drive ecosystem upless through our advertising and financial services offerings to better serve our users and partners. And with that, let me turn the call of
We also see ample opportunities to drive ecosystem uplift through our advertising and financial services offerings to better serve our users and partners.
And with that let me turn the call over to Peter.
Thanks, Alex.
Speaker 4: We delivered on our commitment to achieve just a bit of break even this quarter.
We delivered on our commitment to achieve adjusted EBITDA breakeven this quarter.
Speaker 4: driven by improved profitability across all our segments, even as we continue to grow our top line. Let me start by providing some color.
Driven by improved profitability across all of our segments, even as we continued to grow our top line.
Let me start by providing some color on our revenue growth.
Group revenues in the third quarter grew 61% year on year, and 8% quarter on quarter to reach $615 million.
Speaker 4: Group revenues in the third quarter grew 61% year on year, and 8% quarter on quarter to reach $615 million.
Speaker 4: On a constant currency basis, Revenue's grew 62% year on year, and 10% quarter on quarter.
On a constant currency basis revenues grew 62% year on year and 10% quarter on quarter.
Speaker 4: The strong revenue growth was driven by all segments of abs.
The strong revenue growth was driven by all segments of our business mobility revenues were up 31% year on year, and 11% quarter on quarter to hit $231 million.
Speaker 4: Mobility revenues were up 31% year on year, and 11% quarter on quarter, to hit $231 million.
Speaker 4: Our efforts to deepen user penetration via more economical service offerings have enabled us to capture the growth in demand.
Our efforts to deepen user penetration by more economical service offerings have enabled us to capture the growth in demand.
Deliveries revenues grew 79% year on year, and 5% quarter on quarter to reach $306 million as we continued to grow <unk> and reduce incentives.
Speaker 4: Deliveries, revenues, grew 79% year on year, and 5% quarter on quarter to reach $306 million as we continue to grow GMV and reduce incentives.
Speaker 4: Financial services revenue grew by 156% year on year and 24% quarter on quarter to $50 million. Underpin by improved monetization of our payments business, increased contributions from lending and lowered incentives.
Financial services revenue grew by 156% year on year, and 24% quarter on quarter to $50 million underpinned by improved monetization of our payments business.
Increased contribution from lending and lower incentive spend.
Speaker 4: And enterprise and new initiatives revenues grew 83% year on year and 4% quarter on quarter to reach $28 million.
And enterprise or new initiatives revenues grew 83% year on year, and 4% quarter on quarter to reach $28 million.
Speaker 4: This was supported by increased monetization of our advertising business.
This was supported by increased monetization of our advertising business.
Turning now to group GMB, we recorded year on year growth of 5% to reach five 3 billion in the third quarter.
Speaker 4: Turning now to Group GMV, we recorded year-on-year growth of 5% to reach $5.3 billion in the third quarter.
Speaker 4: This was supported by 7% year on your increase in group M.T.U.s and 5% increase in average order frequency of our service.
This was supported by 7% year on year increase in group empty use and 5% increase in average order frequency of our services.
Speaker 4: Our on-demand segments of mobility and deliveries recorded GMV growth of 14% year on year and 3% quarter on quarter.
Our on demand segments of mobility, and deliveries recorded GMB growth of 14% year on year and 3% quarter on quarter.
Mobility GMB grew strongly by 30% year on year, and 7% quarter on quarter and we remain on track to exit 2023 around pre COVID-19 GMB levels deliver.
Speaker 4: Mobility GMV grew strongly by 30% year on year and 7% quarter on quarter. And we remain on track to exit 2023 around pre-COVID GMV level.
Speaker 4: Delivered GMV continued to expand further as we rolled out more affordable offerings, increasing 7% year on year, and 1% quarter on quarter to $2.6 billion.
Deliveries <unk> continued to expand further as we rolled out more affordable offerings, increasing 7% year on year, and 1% quarter on quarter to $2 6 billion.
Moving onto segment adjusted EBITDA, Our total segment adjusted EBITDA was $221 million in the third quarter, improving by $47 million in the same period last year.
Speaker 4: Moving on to Segment Adjusted EBITDA, a total Segment Adjusted EBITDA was $221 million in the third quarter, improving by $47 million in the same period last year.
Segment margins expanded 320 basis points year on year, and 86 basis points quarter on quarter.
Speaker 4: We continue to optimize total incentives as a percentage of GMV, which improved to 7.1% in the third quarter from 9.4% in the same period last-
We continue to optimize total incentives as a percentage of GMB, which improved to seven 1% in the third quarter from nine 4% in the same period last year.
Speaker 4: Delivery segment adjusted EBDA grew to $88 million, achieving 3.4% EBDA margin.
Deliveries segment, adjusted EBITDA grew to $88 million, achieving three 4% EBITDA margin. This.
Speaker 4: This is an expansion of 302 basis points here on year and 71 basis points, quarter on quarter.
This is an expansion of 302 basis points year on year, and 71 basis points quarter on quarter.
In mobility segment, adjusted EBITDA grew 33% year on year to $180 million.
Speaker 4: In mobility, segment adjusted EBDA grew 33% year-on-year to $180 million.
Speaker 4: If you imagine some ability with 12.8% for the quarter, up from 12.4% in the prior quarter.
EBITDA margins for mobility with 12, 8% for the quarter up from 12, 4% in the prior quarter.
Speaker 4: For financial services, SIGMEN adjusted EBITDA improved to negative $68 million, representing a 35% year on year and a 10% quarter on quarter improvement.
For our financial services segment, adjusted EBITDA improved to negative $68 million.
Representing a 35% year on year, and a 10% quarter on quarter improvement.
Speaker 4: The reduction in losses was primarily driven by lower overhead expenses in our graph-fin business as we improve operational efficiencies that more than offset higher cost of funds to support the increased transaction volumes on our payment platform and increases in our Digibank related costs.
The reduction in losses was primarily driven by lower overhead expenses in our graphics business as we improve operational efficiencies that more than offset higher cost of funds to support the increased transaction volumes on our payment platform and increases in our DG bank related costs.
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Speaker 4: Now, Costa Funds, which is a variable expense within graph thin, that supports our payments platform, comprises roughly about 30% of our financial services cost structure.
Yeah on cost of funds, which is a variable expense within graphene that supports our payments platform comprises roughly about 30% of our financial services cost structure.
Speaker 4: DigiBang Relator Cost, GRU, but 11% quarter on quarter, as we prepare to launch in our remaining market.
DG bank related costs grew by 11% quarter on quarter as we prepare to launch in our remaining markets.
Speaker 4: Finally, for Enterprise and new initiatives, segment adjusted EBITDA more than double year on year with margins increasing to 41% in the third quarter from 16.5% in the same period last year.
Finally for enterprise and new initiatives segment, adjusted EBITDA more than doubled year on year with margins increasing to 41% in the third quarter from 16, 5% in the same period last year.
Speaker 4: profitability expansion is mainly attributed to improve advertising monetization and to deepen advertising penetration within our active merchant base.
The profitability expansion is mainly attributed fits to improve advertising monetization and to deepen advertising penetration within our active merchant base.
Speaker 4: On regional copper costs, this was lower by $16 million at $192 million. As compared to the private period of $208 million and was flat from prior quarter.
On regional corporate costs, this was lower by $16 million at $192 million.
As compared to the prior year period of $208 million and was flat from prior quarter.
The current regional corporate cost run rate reflects cost savings from the restructuring exercise we conducted in June.
Speaker 4: The current regional copper-coast run rate reflects cost savings from the restructuring exercise we conducted in June .
Speaker 4: Centralized support regional costs, such as direct marketing and cloud costs, comprising approximately half of our regional corporate costs. And it continues to improve as a percentage of group revenues on a year-on-year basis.
Centralized support regional costs, such as direct marketing and cloud costs comprising.
Approximately half of our regional corporate costs and it continues to improve as a percentage of group revenues on a year on year basis.
Speaker 4: We also drove further costs optimizations across our regional fixed cost space in the third quarter. Our staff costs continued to decline 6% year on year. And this was attributed to low-key hit count levels across various functions.
We also drove further cost optimization across our regional fixed cost base in the third quarter. Our staff costs continued to decline 6% year on year and this was attributed to lower head count levels across various functions.
Speaker 4: Other overhead expenses of the decline, 14% year on year, as we continue to drive greater operating lip.
Other overhead expenses also declined 14% year on year as we continue to drive greater operating leverage.
Speaker 4: As a result of the strong top-line growth and greater focus on profitability, we recorded our first quarter of positive adjusted EBITDA at $29 million.
As a result of the strong topline growth and greater focus on profitability. We recorded a first quarter of positive adjusted EBITDA at $29 million.
Speaker 4: representing a year-on-year improvement of $190 million and $48 million improvement quarter on quarter.
Representing a year on year improvement of $190 million and $48 million improvement quarter on quarter.
<unk> losses, we reported a third quarter loss of $99 million representing.
Speaker 4: On IFRS losses, we reported a third quarter loss of $99 million, representing a 71% improvement from a loss of $342 million in the same period last-
Representing a 71% improvement from a loss of $342 million in the same period last year.
Speaker 4: due to improving profitability on the group at just an EBDA basis, lowered shared-based compensation expenses, and lowered fair value loss of an investment.
Due to improving profitability on our group adjusted EBITDA basis lowered share based compensation expenses and lowered fair value losses on investments.
Turning now to our balance sheet and liquidity position, we continue to maintain a strong liquidity position ending the quarter with $5 9 billion.
Speaker 4: Turning that to our balance sheet and liquidity position, we continue to maintain a strong liquidity position, ending the quarter with $5.9 billion of gross cash liquidity, an increase from $5.6 billion in the prior quarter, which was driven by an increase in GXS bank customer deposit.
Of gross cash liquidity, an increase from $5 6 billion in the prior quarter, which was driven by an increase in <unk> bank customer deposits.
Speaker 4: Notably, customer deposits from GXS bank in the third quarter was $362 million while a total loan book of spending stood at $275 million.
Notably customer deposits from <unk> bank in the third quarter was $362 million, while our total loan book outstanding stood at $275 million.
Speaker 4: Our net cash liquidity was $5.2 billion at the end of the third quarter, compared to $4.9 billion in the prior quarter.
Our net cash liquidity was $5 2 billion at the end of the third quarter compared to $4 9 billion in the prior quarter.
Speaker 4: Now as we look to the remainder of 2023, we remain committed to growing our business in a sustainable and profitable manner. In deliveries, we are confident of sequential GMOs into the fourth quarter.
Now as we look to the remainder of 2023.
We remain committed to growing our business in a sustainable and profitable manner in deliveries, we are confident of sequential gms both into the fourth quarter.
Speaker 4: demand continues to display positive momentum with GMV growth carrying into October .
Demand continues to display positive momentum with <unk> growth carrying into October.
Speaker 4: We expect the leveries segment as just the EBITDA margins in the fourth quarter to be consistent with that of the third quarter.
We expect deliveries segment adjusted EBITDA margins in the fourth quarter to be consistent with that of the third quarter.
Speaker 4: Similarly, with mobility GMV recording another strong quarter, we aim to capitalize on these growth tailwinds and our confident of sequential growth heading into the fourth quarter. We continue to see robust demand trends in October .
Similarly, with mobility <unk> recording another strong quarter, we aim to capitalize on this growth tailwind and are confident of sequential growth heading into the fourth quarter. We continued to see robust demand trends in October and.
Speaker 4: And we remain on track from Ability GMV to exit 2023 around pre-COVID levels, while maintaining segment adjusted EBITDA margins of between 12% to 13%.
And we remain on track for mobility <unk> to exit 2023 around pre COVID-19 levels, while maintaining segment adjusted EBITDA margins of between 12% to 13%.
Speaker 4: With all segments performing strongly in the third quarter, we are raising our full year group revenue target to between $2.31 billion to $2.33 billion.
With all segments performing strongly in the third quarter, we are raising our full year group revenue target to between 231 billion.
To 233 billion.
This is above the top end of our previous guidance of $2 2 billion to $2 3 billion.
Speaker 4: This is above the top end of our previous guidance of $2.2 billion to $2.3 billion.
Speaker 4: At the same time, we are also revising up our group adjusted EBITDA target to a loss of $20 million to $25 million.
At the same time, we are also revising up our group adjusted EBITDA target to a loss of $20 million to $25 million.
Speaker 4: This is an improvement from our previous guidance of negative $30 million to negative $40 million.
This is an improvement from our previous guidance of negative $30 million to negative $40 million.
With grab now achieving positive adjusted EBITDA, we will manage the business with three key financial guard rails first by continuing to generate sustainable adjusted EBITDA.
Speaker 4: With Grab now achieving positive adjusted EBITDA, we will manage the business with three key financial Godrails.
Speaker 4: First, by continuing to generate sustainable adjusted EBDOT.
Speaker 4: Second, achieving our next milestone of positive free cash flow. And third, continue to drive operating leverage in the business.
Second achieving our next milestone of positive free cash flow and third continue to drive operating leverage in the business.
Speaker 4: I will now pass the time to Anthony to share more on this as well as to provide his thoughts on our long term outlook to close our earnings call.
I will now pass the time to Anthony to share more on this as well as provide his thoughts on our longer term outlook to close our earnings call.
Speaker 5: Thank you very much, Peter. We are proud to have achieved a just a DBW break even this quarter. That said, we are clear that it represents just one milestone of many in our journey as a company.
Thank you very much Peter we are proud to have achieved adjusted EBITDA breakeven. This quarter that said we are clear that it represents just one milestone of many in our journey as a company.
Speaker 5: As such, even as we adapt our business to the evolving market environment, we will remain laser focus in driving both growth and profitability.
As such even as we adapt our business to the evolving market environment, We will remain laser focused in driving both growth and profitability.
And.
Speaker 5: They choose our mission and that mission is to drive Southeast Asia forward by creating economy and power for everyone.
Stay true to our mission and that mission is to drive southeast Asia forward by creating economy empowerment for everyone.
Speaker 5: Despite operating in this region for over a decade, we still see abundant opportunities to untangle complex societal problems in the region.
Despite operating in this region for over a decade.
We still see abundant opportunities to untangle complex societal problems in the region.
We still have a long way to go in achieving our mission.
Speaker 5: We still have a long way to go in achieving our mission.
Speaker 5: There is so much more we can do to serve beyond one in 20 civilizations that use our platform every month and empower the millions of everyday entrepreneurs currently on our platform.
There is so much more we can do to serve beyond no one in <unk>.
That use our platform every month and empower millions of everyday entrepreneurs currently on our platform.
Speaker 5: In order to achieve this, we have to provide our consumers with more affordable services, while enabling our driver and merchant partners to earn more.
Now in order to achieve this we have to provide our consumers with more affordable services, while enabling our drive and merchant partners to earn more.
<unk>.
Speaker 5: We need relentless innovation. And that's something we will continue to strive for. To build a sustainable and thriving marketplace that balances the interests of our users and partners for the long term.
We need relentless innovation and that's something we will continue to strive for to build a sustainable and thriving marketplace that balances the interests of all users and partners for the long term.
We will continue to focus on investing to develop hyper local innovations and leveraging our scale advantage to solve problems for southeast Asia.
Speaker 5: We will continue to focus on investing the develop, hyper-local innovations and leveraging our scale advantage to solve problems for salvation.
Speaker 5: Free main factors, warguide us, on how we decide where to focus on best benefits.
Three main factors will guide us on how we decide where to focus our investment efforts.
Firstly <unk>.
Speaker 5: These investments have to improve the health of the marketplace and solve an actual problem.
These investments have to improve the health of the marketplace and solve an actual problem.
Speaker 5: This one sure that we never compromise on being the number one choice for our users.
This will ensure that we never compromise on being the number one choice for our users and partners.
Speaker 5: An example of these would be the rollout of saver deliveries and improvements to batching rate, which reflect how we are offering more affordable delivery fees to users, while at the same time increasing earnings potential for our driver part.
And examples of these would be the rollout of sabre deliveries and improvements to batching rate.
Which reflect how we are offering more affordable delivery fees to users.
While at the same time, increasing earnings potential for our driver partners.
Speaker 5: Additionally, ecosystem lending is an another example of how we deepen partner engagement and loyalty while driving financial inclusion, which is very close to our hearts, as many of our partners are underserved by traditional banking institutions.
Additionally, ecosystem lending is another example of how we deepen partner engagement and loyalty, while driving financial inclusion, which is very close to our hearts as many of our partners are underserved by traditional banking institutions.
Speaker 5: Secondly, we need to have confidence that we can execute and scale these investments.
Secondly, we need to have confidence that we can execute and scale. These investments.
Speaker 5: We continue to be very selective in a key investments room, or constantly raising the bar of fire with people and technology to maximize success.
We continue to be very selective in our key investments.
While constantly raising the bar higher with people and technology to maximize success.
Speaker 5: We have a strong and robust balance sheet today and while this provides us with financial flexibility, we must maintain discipline and a high hurdle rate when deploying our capital across both organic and inorganic opportunities.
We have a strong and robust balance sheet today and while this provides us with financial flexibility.
We must maintain discipline and a high hurdle rate when deploying our capital across both organic and inorganic opportunities.
Alright.
Speaker 5: These initiatives must be able to generate sustainable unit economics for us in the long term.
These initiatives must be able to generate sustainable unit economy for us in the long term.
Speaker 5: And we have demonstrated this with mobility and deliveries improving profitability on a segment adjusted EBWC's for seven consecutive quarters.
And we have demonstrated this with mobility and deliveries improving profitability on a segment adjusted EBITDA basis for seven consecutive quarters.
Speaker 5: and we remain committed to continue improving on our profitability levels as we strive to provide the best selection to users while maintaining a healthy and thriving marketplace.
And we remain committed to continue improving on our profitability levels as we strive to provide the best selection to users, while maintaining a healthy and thriving marketplace.
Speaker 5: For financial services, we are confident that it remains on track to replicate the successful transition to profitability that both our mobility and delivery segments have achieved.
For financial services.
We are confident that it remains on track to replicate the successful transition to profitability that both on mobility and delivery segments have achieved.
Speaker 5: While our new initiatives and innovations to serve the region, such as affordability, such as reliability push, or our efforts to scale up our DG banks, they may not result in immediate returns. We will continue to operate the business with discipline and with a long-term view in mind to achieve three outcomes.
While our new initiatives and innovations to serve the region, such as affordability, such as reliability push or our efforts to scale up our DG banks. They may not result in immediate returns we will continue to operate our business with discipline and with a long term view in mind to achieve three.
Outcomes.
Firstly.
Speaker 5: drive towards a steady pace of adjustity be the growth and generate free cash flow.
Driving towards a steady pace of adjusted EBITDA growth and generate free cash flows.
Speaker 5: Secondly, establish strong competitive advantages. They can reinforce our reliability and service quality to our users and...
Secondly, established strong competitive advantages that can reinforce our reliability and service quality to our users and partners and finally stay true to our commitment to deliver a triple bottom line, which is to simultaneously deliver financial performance.
Speaker 5: Finally, stay true to our commitment to deliver a triple bottom line, which is to simultaneously deliver financial performance for our shareholders and create a positive, social, and environmental impact for our home transportation.
For our shareholders and create a positive social and environmental impact for our home Southeast Asia.
Speaker 5: only by building a financially profitable business will be able to deliver impact, not just for this current generation, but for the generations to come.
Only by building a financially profitable business or.
Be able to deliver impact not just for this current generation, but for the generations to come.
In closing grabbed delivered a strong set of results, where we grew on our topline and achieved positive adjusted EBITDA for the first time.
Speaker 5: In closing, grab delivered a strong set of results where we grew on our top line and achieved positive adjusted EBDA for the first time.
Speaker 5: Alex, Peter and I would like to thank fellow grabbers, our users and partners for all their contributions and support. Without it, these results will not have been possible.
Alex Peter and I would like to thank fellow grabbers, all users and partners for all their contributions and support without it. These results would not have been possible as.
Speaker 5: As Grap continues to take steps towards its mission.
As grab continues to take steps towards its mission.
Speaker 5: I am very excited about what lies ahead. I look forward to sharing many more milestones and successes with all of you in the future. Thank you very much for your time and we all now open up the call for questions.
I am very excited about what lies ahead I look forward to sharing many more milestones and successes with all of you in the future. Thank you very much for your time and we will now open up the call for questions.
As a reminder, if you would like to ask a question today. Please press star followed by one telephone keypad to enter the queue from the parent to ask a question. Please ensure you were on mute locally staff slipped by one to ask a question today and when asking questions. Please limit yourselves to two questions per person.
Speaker 1: As a reminder, if you would like to ask a question today, please press star followed by one, and on your telephone, keep had to enter.
Speaker 1: And, with the parent-stable question, please ensure you are unmuted locally. But, staff will avoid one to ask a question today. And, when asking questions, please limit yourself to two questions per person.
Speaker 1: I asked question today comes with Navinkiller from UBS. Navinial line is open, please go ahead.
The first question today comes from <unk> <unk> from UBS Devine. Your line is open. Please go ahead.
Hi, Thank you for the opportunity.
Speaker 6: Hi, thank you for the opportunity. I guess two questions from me. First of all, I guess I wanted to touch on the elephant in the room, which is a food panda, proposed sale in Southeast Asia.
I guess two questions from me.
First of all I guess I wanted to touch on benefit that the room, which is the food.
<unk> proposed seen in southeast Asia.
Speaker 6: What can you comment on this? And I guess in particular, how do you think about it between acquiring it versus not acquiring it and competing potentially, I guess, with a more aggressive competitor? Can you, I guess, also help us understand how you're thinking about this?
What can you comment on this and I guess in particular, how do you think about it between acquiring it.
What's the thought acquiring it and competing potentially against with a more aggressive competitor.
Can you help us understand how you're thinking about this.
With regards to your overall capital allocation principles.
Speaker 6: in regards to your overall capital allocation.
Speaker 6: And I give a second question. I know you briefly touched upon this a little bit, but with the business now achieving positive EBITDA.
And I guess the second question.
I know you briefly touched upon this a little bit.
With the business now achieving positive EBITDA.
Speaker 6: How are you thinking about balancing growth and profitability going forward? And how should we think about it adjusted a bit the margin going forward?
How are you thinking about balancing growth and profitability going forward.
And how should we think about your adjusted EBITDA margin.
Going forward. Thank you.
Speaker 3: Thanks, Navin. Alex here, I'll start on the question about food pandas Southeast Asia.
Thanks, Devin Alexey I'll start on the question about food Panda Southeast Asia.
As you know we won't comment on rumors, but I will say that we don't operate for M&A, we operate to provide the best experience and the best.
Speaker 3: As you know, we won't comment on rumors, but I will say that we don't operate for M&A. We operate to provide the best experience and the best.
The best services for our customers mentioned, some drivers while I'm trying to be profitable as a platform as you can see from our strategy.
Speaker 3: the best services for our customers merchants and drivers while trying to be profitable as a platform as you can see from our strategy. So I think some of the outstanding numbers this quarter, if you ask me where the operational numbers, at storters now, accounting for over a third of delivery's orders, reduction in driver wait times, improving by 72% year and year and 47% quarter on quarter with the proprietary mapping that we have.
I think some of the outstanding numbers. This quarter, if you ask me where the operational numbers.
The orders now accounting for over a third of deliveries orders reduction and drive a wait times, improving by 72% year on year and 47% quarter on quarter with the proprietary mapping that we have.
Speaker 3: And then that's all translating to higher earnings per hour for our drivers, which means that we get much better loyalty and much better supply than smaller compared it.
And then that's all translating to higher earnings per hour for our drivers which means that we.
We get much better loyalty and much better supply than than smaller competitors.
Speaker 3: So that translates into affordability, quality of selection, so we just keep increasing while it's sharing engagement as well with the financial services that we add on. So that multi-segment approach is also super important.
So that translates into affordability quality and selection. So we just keep increasing wallet share and engagement as well with the financial services that we add on to that multi segment approach is also super important.
Speaker 3: So I would say that our main focus is on continuing to double down on that scale advantage so that we increase value for consumers, drivers and merchants on our platform.
So I would say that our main focus is on continuing to double down on that scale advantage to that.
We increased value for consumers drivers and merchants on our platform.
And on your question around just capital allocation.
Speaker 4: and I've been on your question around just a capital allocation. I think Anthony summed it up well during his remarks where he said, well, we have a very strong balance sheet today. We're going to consider the maintain very dis-
Well I think Anthony summed it up well during his remarks, where you sit.
We have a very strong.
Balance sheet today.
<unk> continued to maintain very disciplined way.
Speaker 4: We have a high hurdle rate when deploying a capital, both organic and inorganic opportunities.
Have a high hurdle rate when deploying our capital both organic and inorganic opportunities.
Speaker 4: So no change in terms of how we view our capital deployment principles will continue to be prudent, will continue to have high, very high hurdle rate when it comes to deploying those capital. And we're very focused in making sure that we have a healthy cash balance and adopt that discipline that we've been executing, taking our balance approach towards that capital allocation.
So no no change in terms of how we view our capital deployment principles.
We continue to be prudent.
We will continue to have high very high hurdle rate when it comes to deploying that capital.
And where we're very focused in making sure that we have a healthy cash balance and adopt that discipline that we've been doing.
Executing taking a balanced approach towards that capital allocation.
On growth and profitability are balancing them, we'll constantly be pushing for both growth and profitability, while staying on track with our mission of driving economy and palm and for everyone.
Speaker 5: on growth and profitability or balancing them will constantly be pushing for both growth and profitability whilst staying on track with our mission of driving economy and power meant for everyone.
Speaker 5: As you now see, we have achieved positive group of justity-beet there for the first time this quarter. Well, this is just one achievement. There are many, many more that we are shooting for. So looking ahead, we're focused on driving a steady pace of adjusted EBDA growth and generating resilient free cash flows. And
As you now see we have achieved positive group adjusted EBITDA for the first time this quarter. While this is just one achievement. There are many many more that we are shooting for so looking ahead, we will focus on driving.
This steady pace of adjusted EBITDA growth and generating resilient free cash flows.
We have.
Speaker 5: And we will continue to focus on investing and developing hyperlocal solutions that solves real problems in this region. But how we think about investments, we will do.
And we will continue to focus on investing and developing hyper local solutions that solve real problems in this region, but how we think about investments we will do.
Speaker 5: One criteria does improve the health of our marketplace.
One criteria does it improve the health of our marketplace too.
Speaker 5: two, are we able to successfully scale up in a very capital-official manner? And three, it must be able to generate sustainable unit economics for the long run. So in short, we are actually very excited of this journey, and especially what lies ahead. We still see plenty of headroom to grow in the region.
<unk> are we able to successfully scale up in a very capital efficient manner.
And three it must be able to generate sustainable unit economy for the long run. So in short we are actually very excited of this journey and especially what lies ahead, we still see plenty of headroom to grow in the region.
Speaker 5: So we will do this in a sustainable and profitable manner. And we will do so generating a steady pace of a just a debilagro.
So we will do this in a sustainable and profitable manner, and we will do so generating a steady pace of adjusted EBITDA growth.
Speaker 4: I mean, just that you had a question around adjusted EBDA margin also as part of that.
And I mean, just you had a question around.
Adjusted EBITDA margin also as part of that.
Speaker 4: So we're not guiding long-term EBDA margins yet, group EBDA margins.
Look we're not guiding long term EBITDA margins as yet group EBITA margins.
Speaker 4: What I can say is the way we approach it is really continue to drive operating leverage in the business and also making sure that we can continue to grow also our top line. So we'll be balancing that and we'll be managing our business to long-term EPDA growth and also free cash flow generation. So that's how we're going to balance the growth and profitability.
Here's what I can say is the way we approach it is really continuing to drive operating leverage in the business and also making sure that we can continue to grow also our top line. So we will be balancing that.
And we'll be managing our business to long term EBITDA growth and also free cash flow generation. So that's.
That's how we're going to balance that growth and profitability.
Thank you. The next question comes next question. Please Alicia.
Speaker 1: The next question comes from Alicia Yupp from City Group. Alicia, your line is open. Please go ahead.
The next question comes from Alicia Yap from Citigroup. Please <unk>. Your line is open. Please go ahead.
Hi, Thank you good evening, Anthony Alex and Peter Thanks for taking my questions. Congratulations.
Speaker 7: Hi, thank you. Good evening, Anthony, Alex and Peter. Thanks for taking my questions. Congratulations on these strengths. There's a result. Two questions. First.
That's a ways out too.
Two questions first.
Speaker 7: Can management share your view how you see the overall competitive landscape for the delivery business?
Hi management.
Sure.
The overall competitive landscape.
Dave.
Speaker 7: Do you think there is still room for new players to enter by building their presses gradually and then taking share from some of the players that who might skill back their focus in the region?
Do you think there is still room for more players to entre by boarding passengers gradually ticking.
<unk> scaled back their forecast in the region.
Speaker 7: And then second question is, you know, given your new initiative enterprise business is doing very well. So if you can share your aspirations for the online app business, what is your specific KPI or milestone that you've have set for yourself in the New York Tom and Medium Tom, how far, how big you hope to achieve in the app revenue. Thank you.
Cell phone questions.
Given law.
New initiatives enterprise space.
Doing very well so eagle can share your aspiration for the online Apple.
What is <unk>.
Pulp y or milestones that we have.
Perhaps for yourself in the near to medium term.
How you hope to achieve.
Thank you.
Speaker 3: Thanks Alicia, for both those questions. Let me take those. Firstly, the delivery market has always been competitive, as you know. We think our multi-segment approach to on demand is gives us an advantage. And the focus on the ecosystem scale I was speaking about earlier to an event question.
Thanks, Alicia for both of those questions. Let me, let me take those firstly the deliveries market has always been competitive as you know.
We think our multi segment approach to on demand as it gives us an advantage and focus on the ecosystem scale I was speaking about earlier to <unk> question.
Speaker 3: If you look at the way we've been able to reduce our delivery's total incentives, down 444 basis points to 9.8% now, down a year and year by 44 basis points.
If you look at the way, we've been able to reduce our deliveries total incentives down 444 basis points to nine 8% now.
Year on year by 444 basis points, and then the deliveries consumer incentives within that down 249 basis points year on year to five 6%. So we I think that's a proof point that we're not dependent on incentives to grow we can actually fundamentally drive the cost of serve down cost to serve down to create a four.
Speaker 3: and then the delivery of consumer incentives within that down to 149 basis points year on year to 5.6%.
Speaker 3: So I think that the proof point that we're not dependent on incentives to grow, or we can actually fundamentally drive a cost of serve down, cost of serve down to create affordable services. And that in itself can drive growth.
Biddable services and that in itself can drive growth.
Speaker 3: If you look at the back to the financials for this quarter, we've now got deliveries margins reaching 3.4%, and with revenue growing 79% year and 5% quarter on quarter, then I think you can see that we're getting both.
If you look at the back to the financials for this quarter, we've now got deliveries margins, reaching three 4% and.
And with revenue growing 79% year on year, and 5% quarter on quarter.
Then.
I think you can see that we're getting both.
Speaker 3: Growth, margin improvement, but with reducing incentives, EBITDA, margin expanded, 302 basis points year on year over the same period. So this is about driving affordability. And I reckon therefore, if people do drop out of the market, I think we're optimistic that it will be grab and not the new entrance, it will take their share.
Growth margin improvement, but with reducing incentives EBITA margin expanded 302 basis points year on year.
Over the same period. So this is about driving affordability.
And I reckon, therefore, if people do drop out of the market I think we're optimistic that it will be grab and not the new entrants who will take that sure.
Speaker 3: So going back to your second question, which was on the ads business.
So going back to your second question, which was on the ads business.
Yes.
Speaker 3: Yeah, you know, the year-and-year improvement in ads is one of the big stories, I think, this quarter and last quarter. We're confident in our endemic ads proposition, you know, because although there are other platforms out there, platforms that have larger audiences than we do.
Year on year improvement in ads is one of the big stories, I think this quarter and last quarter.
We are confident in our endemic adds proposition because although there are other our other platforms out there so platforms that have larger audiences than we do.
Speaker 3: We uniquely can offer that closed loop on performance marketing that endemic advertisers want. We're dealing with first party data in our case as well, with the transaction associated with it.
We uniquely can offer that closed loop.
Performance marketing that endemic advertisers want and we're dealing with first party data in our case as well with the transactions associated with it.
Speaker 3: So this is a kind of a recession proof because performance marketing which tends to outperform in difficult times. So we think it's the right thing to focus on. In the quarter, you can see that our self-serve advertisers, merchant advertisers, was up 83% year on year. So that's a reflection of the strategy we've shared with you over the last couple of courses to focus on self-serve. But it's still in early days.
So this is a kind of a recession proof because performance marketing, which tends to outperform in difficult times. So we think it's the right thing to focus on.
In the quarter, you can see that our self serve.
Advertisers mentioned advertisers was up 83% year on year. So that's a reflection of the strategy. We shared with you over the last couple of quarters to focus on self serve but it's still in early days.
Speaker 3: We can see that we've still got lots of headroom to penetrate the long tail advertisers further. We've got great return and advertising sales for them. We're at about seven to nine times row-ass, even for the long tail mix that we're serving.
We do we can see that we've still got lots of headroom to penetrate the long tail advertisers further and.
And we've got great return on advertising sales for them, we're at about 7% to nine times Rojas, even for the long tail of mix that we're serving.
In terms of where that could end, we're not giving guidance at this point, but I will say that we are watching carefully some of the external benchmarks, which as you probably know in excess of 2%.
Speaker 3: In terms of where that could end, we're not giving guidance at this point, but I will say that we're watching carefully some of the external benchmarks, which as you probably know are in excess of 2% as a revenue as a percentage of delivery's GMV. So that's more than double where we are at this point.
<unk> revenue as a percent of deliveries GMB.
That's more than double where we are at this point.
Thanks Alicia.
Thank you.
The next question comes from Peng from Goldman Sachs. Your line is open. Please go ahead.
Speaker 1: The next question comes from Pangvich from GovanSax. Pang your line is open, please go ahead.
Speaker 8: Hi, thank you very much for the opportunities and congratulations for a good type of yourself.
Hi, Thank you for most of our opportunities on congratulation for tougher behalf too.
Speaker 8: Two questions for me please. Number one on the on demand market chain trends, we noticed it's very strong, this quarter especially in Indonesia.
Question for me. Please one on the on demand market saw trumps noughties.
Very strong this quarter, especially in Indonesia.
Speaker 8: With you continue to deliver in mid-teens in term of your own year trend, well, as you appear that seem to contract on mid-teens, as well, what have you done differently there that led to this strong growth trend, and more importantly, can you also comment on how management see the current competitive landscape into four quarters over there, with your competitors signaling that they are moving to protect their market share now. That's question number one.
<unk> continues to deliver mid teens income up year on year train license key.
It does seem to control and maintain as well what have you done differently.
This strong growth trend in mind.
Tammy can you also comment on how management see the current competitive landscape into fourth quarters overtime. Thank you welcome Pat Atactic narrowing that down moving to protect that market share. Now. That's question number one question number two related to the financial services sector growth materially pick up in the quarter can you.
Speaker 8: Question number two related to the financial services segment. Growth materially pick up in the quarters. Can you share with us more on the train going forward? How much of this growth come from payment and how much of this now coming in from lending with your loans outstanding amounted to around 175 million in the quarters? How should we see this train going forward?
Sure with asthma on the train going forward how much of this growth come from panel and how much update now coming in from London, which our loans outstanding amount that to around $275 million in the corners, how should we see this trend going forward.
Okay. Thanks, so much for both questions. Let me take the question on Indonesia first.
Speaker 3: Okay, punk, thanks so much for both questions. Let me take the question on Indonesia first.
Youre right, we've grown strongly in Indonesia, both in both mobility and deliveries I guess.
There are no secret ingredients, but I think our strategy that's working for US is to have a ladder pricing.
We've got a whole amount or economy save a service that helps us drive the base of the pyramid and bring new people into the platform and layered with ads. So it helps to drive out.
We get we get adds margin enhancement from that.
Speaker 3: And then we got premium services to cater for business community, which obviously come with high margins. And then the price laddering between the economy, the standard and the premium is optimized all the time using machine learning city by city, time slot by time slot. So this is working for us. It's allowing us to grow healthily at the same time, maintain our margins at or above the long-term targets that we shared with you.
And then we've got premium services to cater for our business community, which obviously come with higher margins and then the price ladder in between.
The economy, the standard and the premium is optimized all the time using machine learning.
City by city Timeslot by time slot.
No.
This is working for us, it's allowing us to grow healthily and at the same time same time maintain our margins at or above the long term targets that we shared with you.
Speaker 3: In addition, I think we have an advantage in Indonesia because of our geographical diversification. We get scaled by being consumer choice, number one choice in multiple markets. So the tech that we can roll out, like our mapping tech, our payments, and a lot of our...
In addition, I think we have an advantage in Indonesia because of our geographical diversification, we get scale by being consumer choice number one choice in multiple markets and so the tech that we can rollout like mapping tech pay.
Payments.
And a lot of Ah.
Speaker 3: Other optimisation tech that's driven the great operational performance in this quarter.
Although optimization, Texas, driven the great operational performance in this in this quarter.
Speaker 3: is built for multiple markets and so we can amortize the cost for the Indonesian market.
Is built from multiple markets and so we can amortize the cost for the Indonesian market.
Speaker 3: We've been able to lower the consumer incentives. So, as I talked about earlier, to a leachist question.
We've been able to lower the consumer incentives so as I talked about earlier to Alicia's question. You can see that we demonstrated that we can use cost to serve initiatives to provide affordable services without using incentives.
That will be our strategy to continue to do that in Indonesia, you asked about how do we see the fourth quarter I think more of the same we will continue to double down on extracting cost to serve benefits, which we can then use to benefit our drivers to improve supply and benefit our merchants because we'll be consumer number one choice.
Speaker 3: to benefit our drivers to improve supply and benefit our merchants because we'll be consuming number one choice, which makes us a source of strong income growth.
It makes us a source of strong income growth for them.
Speaker 3: And your second question of financial services growth. Yeah, we're really happy with the traction we're getting from lending both through G-FIN and through the FlexiLone Product GXS and Singapore.
And your second question on financial services growth, Yes, we're really happy with the traction we're getting from Len.
Lending both through <unk> and through the flex loan product at <unk> in Singapore.
Speaker 3: The success we're having is based on basically data science because we're using a huge amounts of data, both conventional lending data and unconventional lending data to do the underwriting. And we're getting able to provide loans to a wide segment of users, some of whom have not borrowed before.
The success, we're having is based on basically data science, because we are using a huge amounts of data both conventional lending data unconventional lending data to do the underwriting and we're getting we're getting able to provide loans to a wide segment of users.
Some of whom have not borrowed before.
Speaker 3: and yet be able to maintain our MPL losses at stable low level.
And yet be able to maintain our NPL losses at stable low levels.
Speaker 3: So our data science advantage in lending is going to be the driver for financial services, both for the bank and non-bank lending. The majority of our revenue growth came from lending. So the payment strategy is to focus on our own ecosystem. You'll remember going all the way back to September 2022 when we had the investor day.
Our data science advantage in lending is going to be the driver for financial services, both for the bank and nonbank lending as the majority of our revenue growth came from lending. So the payments the payment strategy is to focus on on our own ecosystem Youll remember going all the way back to September 2022, when we.
At the Investor day.
Speaker 3: We talked about moving away from the off-platform payments business, where the transaction margins were not contributing to our path to profitability. That's been ongoing. Off-platform transactions continue to fall, and that means that the margin mix improves for our payments business. But the payments business therefore tends to grow at the rate at which our GMV grows, because it's all about payments on the ecosystem.
We talked about moving away from the off platform payments business, where the transaction margins were not contributing to the positive.
<unk> profitability that's been ongoing.
Off platform transactions continued to fall and that means that the margin mix improves for our payments business, but the payments business. Therefore, it tends to grow at the rate at which our GMB growth because it's all about payments on the ecosystem.
Speaker 3: And that means that the very outstanding growth numbers that we shared earlier are primarily driven by lending.
And that means that the.
The very outstanding growth numbers that we shared earlier are primarily driven by by lending.
Speaker 1: The next question comes from Vivian Kithiel from Morgan Stanley . If you and your line is open, please go ahead.
The next question comes from Vivien <unk> from Morgan Stanley. Your line is open. Please go ahead.
Yeah.
Speaker 9: Thank you. I had two questions. The first one was continuing with the financial service assignment. Just wondering the narrowing of losses that we've seen in this quarter, despite higher-digibank-related costs. Can we just explain the drivers of this and what would your outlook for the fourth quarter and beyond be? Do we expect these losses to continue tapering now or should we expect it to be bumpy as you launch into new markets?
Thank you I had two questions. The first one was continuing with the financial services segment.
Just.
Wondering the narrowing of losses that we've seen in this quarter.
Higher did you bank related costs can we just explained the drivers of this and what would your outlook for the fourth quarter and beyond do.
Do we expect these losses to continue tapering now or should we expect it to be bumpy as you launch into new markets and my second question is around corporate costs. We noticed it was flat quarter on quarter. Once again would be keen to know your comments on how you see this trending whether we are depending more on operating metrics now.
Speaker 9: And my second question is around corporate cost. We noticed this was flat quarter on quarter. Once again, would be keen to know your comments on how you see this trending, whether we are depending more on operating leverage now, or do we have more leverage to pull to reduce this? Thanks.
Do we have more levers to pull to reduce this.
Hey, Dave yet Peter let me take both those questions.
Speaker 4: So on financial services that you did, we did see a now-ream the losses on a Q on Q bases.
So in financial services that you did we did see a narrowing of the losses on a Q on Q basis.
Speaker 4: So let me get a bit of color on that.
So let me provide a bit of color on that.
Speaker 4: If you look at G-FIN business, and that's where we continue to optimize the cost structure of our G-FIN business.
If you look at our <unk> business, and that's where we're continuing to optimize the cost structure of our <unk> business.
Speaker 4: And we're gonna, and then we've seen some really good traction and we also fit very similar previous quarter
And are we going to and then we've seen some really good traction and we're also very similar.
<unk> quarter.
Speaker 4: And if you look at also the variable cost, which is a better third of the G3 of our FinTech business today, that's a variable piece which is actually supporting out.
And if you look at also the variable cost, which is a better third of the <unk> of all about Fintech business today.
The variable piece, which is actually supporting out.
Speaker 4: play payments platform. So as the volume transactions grow, you're going to see an uptick of the payment costs on the cost of funds to support our growing mobility and deliveries business. But setting that aside, the cost structure of jeeping continues to be, can you to come down? It continues to be optimized in the business.
<unk> payments platform, so as the volume transactions grow youre going to see an uptick of the payment costs on the cost of funds to support our growing mobility and deliberate business a setting that aside the cost structure of <unk> continues to be to continue to come down and continues to be optimizing the business.
On the DG Bank side, we're getting ready for a couple of big launches.
Speaker 4: Dickey Bank side, we're getting ready for a couple of big launches in a couple of remaining countries.
Couple of remaining countries.
Speaker 4: in this quarter. So we're very excited about that. And some of the cost truck showed 11% increase that we talked about.
In this quarter. So we're very excited about that and some of the cost structure, 11% increase that we talked about.
Speaker 4: is leading up to those launches that we have.
He is leading up to those launches that we have and as we think about this quarter overall I would say probably in terms of our cost structure for all for our overall fin Tech business is is.
Speaker 4: And if you think about this quarter of the roll, we say probably in terms of our cost structure for our overall fintech business is fairly higher just given that we are going in with those kiloenches in those couple of markets that we have.
Maybe higher just given that we are going in with those key launches in those couple of markets that we have.
Speaker 3: Go ahead, go ahead, yeah. I'll just add some numbers to illustrate Peter's comments. So cost of funds represents about 30% of our financial services costs.
Yeah go ahead go ahead, yes, I'll just I'll just add some numbers to illustrate Peters comments, so cost of funds represents about 30% of our financial services costs.
Speaker 3: And that obviously increases in line with the GMV growth. So that's what Peter referred to as variable. So that's the 30%. The other segment costs, if you do the sums from the numbers we shared with Quirter, the other segment costs actually reduced by about 5% year and year. And that's despite the increase.
And that obviously increases in line with the GMB growth. So that's what Peter referred to as variable.
30% the other segment costs, if you do the sums from the number three share this quarter. The other segment costs actually reduced by about 5% year on year and that's despite the increase in the build cost for the DG banks, which is up 11% quarter on quarter. So we've managed to absorb that build cost for the tissue banks and at the <unk>.
Speaker 3: in the build cost for the DT banks, which is up 11% quarter on quarter.
Speaker 3: So we managed to absorb that bill cost for the Digi banks and at the same time reduced the total cost by 5%. Thanks Peter. Yep.
Same time reduce the total cost by 5% Thanks Peter.
Yes.
And then our regional corporate costs.
Speaker 4: We're going to continue to look for operating leverage in the business. And as you saw in the third quarter, it was flat on a quarter quarter basis, but it was down on an 8% year of a year basis.
You're going to continue to look for operating leverage in the business.
And as you saw in in the third quarter. It was flat on a quarter to quarter basis, but it was down.
On an 8% year over year basis.
Speaker 4: If you unpeel that, what we did see is head count costs was down 6% year-over-year and also on queue on queue bases. And our fixed overhead, non-head count fixed overhead was down 14% year-over-year or 9% quarter-on-quarter. So we're going to continue to look for opportunities to optimize costs, but also at the same time that we're also going to balance the need for us to also grow the business and to run the business at the same time.
And Peel.
That's what we did see as head count costs was down 6% year over year and also on Q on Q basis.
<unk> fixed overhead.
Non head count fixed overhead was down 14% year over year or 9% quarter on quarter. So we that.
That continues to we're going to continue to look for opportunities to optimize costs, but also at the same time that we also in our balance.
The need for us to also grow the business and to run the business at the same time.
Speaker 4: So we're going to be very disciplined in terms of how we hire. We're going to be very disciplined in terms of what costs we take on as a business. But it is important that we do have operating leverage in business and we've seen that also. And we're going to continue to make sure that operating leverage continues to drive both growth in the business but also margin improvements overall.
So we're going to be very disciplined in terms of how we hire we are going to be very disciplined in terms of our cost we take on as a business, but it is important that we do have operating leverage in the business and we're seeing that also and we're going to continue to make sure that that operating leverage continues to drive.
Both growth in the business, but also margin improvement overall.
Speaker 1: next question comes from P use childry from HTSBC. P use your line as open please go ahead.
The next question comes from Piyush Choudhary from HSBC your.
Your line is open. Please go ahead.
Speaker 10: Yeah, thanks a lot, Omar Santini and Dai team on good side of the results and turning it just a little bit up all in.
Yes, Thanks a lot.
A lot of sampling and enticing.
Presented.
Timing adjusted EBITDA positive.
Speaker 10: Two questions. Firstly, you've talked a lot about, you know, affordable solution in both mobility and delivery. Can you give some color? What percentage of incremental users are coming because of such
Two questions.
Firstly, you've talked a lot about.
Affordable solution in both morbidity and delivery.
Can you give some color what percentage of incremental users are coming because of that solution.
Speaker 10: what percentage of incremental GMV growth is driven by that? And is the margin profile of these new product solution similar?
What kind of Incrementals GMB growth.
It's driven by that and is the margin profile of these new product solutions similar.
Speaker 10: That's the first one. Secondly, in the delivery segment, you have already reached 3.4% segment, mark.
That's the first one secondly.
And on the delivery segment, you have already received one 4% segment margin.
Speaker 10: So any divisions to your midterm margin expectation, can the segment reach 5% segment margin by 2025?
The reasons for your model.
And expectation.
Segment reached by segment.
Segment margin by 2025.
Thank you.
Speaker 3: So, Piers, thanks for your questions. Yeah, the safest solution now is...
So pearce thanks for your questions.
Yes.
Save a solution now is.
Responsible for about one third of the GMT, So imagine that's equates to about.
Speaker 3: responsible for about one third of the GMV. So imagine that's quite about one third of the M.T.U.
About one third of the <unk>.
Speaker 3: On the margin impact, what we are able to do, because of the ladder pricing approach that I described earlier, is because we're optimizing the pricing between the saver offering, the standard offering and the premium offering. We're able to manage the margin to the same stable and result that you saw. So over 12% for mobility is in the 3.4% for
On the margin impact, what we're able to do because of the ladder pricing approach that I described earlier.
Is because we're optimizing the pricing between the savour offering the standard offering and the premium offering we're able to manage the margin to the same stable and result that you saw so over 12% for mobility and the three 4% for.
Speaker 3: for deliveries. It's the same optimization that we used as I mentioned using machine learning.
Four delivers the same optimization that we use as I mentioned using machine learning the products are distinctly differentiated. So for example on the safer product.
Speaker 3: The products are distinctly differentiated. So for example, on the Save a Product, you'll see more ads.
Youll see more ads led in the.
Speaker 3: as an example. And then on the premium product, you'll get better vehicles. So the physical product is different. And then also you get a more reliable, fast pickup for airport rides, for example, which is something we've been growing very, very rapidly. So NetNet that the margin is stable across that, despite the fact we're now able to target the affordable segment.
As an example, and then on the premium product you'll get.
Better vehicles, so the physical product is different and then also you get.
More reliable faster pick up for airport rides for example, which is something we've been growing very very rapidly. So net net that the margin is.
Table across that despite the fact, we're now able to target the affordable segment.
Speaker 4: If you're showing you a delivery margin of 3.4, we've always said that we're from a steady state perspective at the delivery margin with 3% plus.
If you are showing your deliveries margin of three four.
We've always said that we're from a steady state perspective of our deliveries margin would be 3% plus.
Speaker 4: and we've achieved that. And if you look at our ads business also, last Q3 from a margin perspective, it's roughly about 40%, 41%. So we're gonna continue to...
And we've achieved that.
And if you look at our ads business also.
Q3, yes.
From a margin perspective, it's roughly about 40% 41%.
So we're going to continue to balance.
Speaker 4: in terms of growing their deliveries business. We still see a lot of opportunities and our deliveries business as Alex mentioned.
In terms of growing the delivery business, we still see a lot of opportunities in our delivery business as Alex mentioned.
Speaker 4: A third of our deliveries uses tapping into our affordable options, which is great. A third of our deliveries, GMV comes from subscribers, which is critical also. So we're going to drive frequency. We're going to drive growth also at the same time. But also we're going to be very disciplined also and making sure that the margin for deliveries continues to be at that 3% plus that we've said in prior quarters.
A third of our deliveries users tapping into our affordable options, which is which is great. A third of our deliveries GMB comes from subscribers, which is critical also so we're going to drive frequency, we're going to drive growth also at the same time, but also we're going to be very disciplined also in making sure that the margin.
For deliveries continues to be at that 3% plus that we've said in prior quarters before.
Speaker 1: The next question comes from Vinnie Everthing from Deutsche Bank. Vinnie, your line is open, please go ahead. Hello.
The next question comes from <unk> <unk> from Deutsche Bank.
Your line is open. Please go ahead.
Hello can you hear me.
Please go ahead and here you go ahead.
Speaker 11: Yeah, thank you for the call and also thank you for the improved disclosure on your financial services business. I have a few questions. Firstly, on the DG bank side.
Yes. Thank you for the call and want to thank you for the improved disclosure on your convention services.
I have a few questions firstly on the BG bank side.
Speaker 11: Can you please help us understand what metrics we should use to evaluate the effectiveness of your DigiBank strategy? I know you've given numbers on the Singapore deposit base that you've completed a year. But could we know how much of the loan book is coming from the DigiBank or at least in terms of origination transactions?
Can you please help us understand what metrics, we should use to evaluate.
The effectiveness of <unk> Bank strategy.
Given numbers on the Singapore deposit.
T J.
But.
Could we know how much your loan book is coming from the piggyback or at least in terms of OTT Nishu connection.
Speaker 11: If you could share some color on that front please.
If you could shed some color on that please.
Speaker 11: My second question is actually with regard to Anthony's comments about the aspects that look that are key to long-term growth. I found it kind of...
My second question is actually.
Glen can you comment about.
The aspect that look.
That are key to long term growth.
I found it kind of.
Got it.
Speaker 11: easy to accept that any M&A will more or less improve the health of marketplace and help to scale up the business in an efficient way and with the treasury which is earning some 5% income. I think the hurdle rate to deploying more money into business doesn't seem that high. I'm just trying to think why would you ever say no to any M&A?
Easy to Nick Mindy will more or less into the health of the marketplace.
Scale up the business in an efficient way.
And with the tragedy, which is learning.
<unk> income.
Thank the hurdle rate to deploying more money into business it doesn't seem that high.
I'm just trying to think you Mcguire.
Let's say no to any M&A.
Speaker 11: Could you just please share some clarity on what kind of metrics you are using besides improving health of the marketplace?
Could you just shed some clarity on what kind of.
<unk> using the site improving health of the marketplace.
Speaker 11: I guess my third question is just if you could share any light on what kind of commitment could you make to the regulator and Singapore to kind of ensure that the France cab.
I guess my question is.
Just if you could shed any light.
On what kind of commitment.
Could you make to the regulator in Singapore.
To kind of ensure that the crunch cab.
Speaker 11: Conraction does go through smoothly. If that's something you're considering making commitments to the regulator. Thank you.
Transaction. It does go through smoothly is that something you're considering making commitments to the regulator.
Okay.
Speaker 3: Thanks for your name. Yes, let me take your first and third question. So the first one on the Digibank's, as you probably saw the loan outstanding in total between Gfin and Digibank, is at 275 million. And the loan dispersal year to date has reached one.
Thanks, Irina, Yes, let me take your first and third question. So the first one on the Digi banks as you probably saw the loans outstanding in total between <unk> and <unk> Bank.
Is that $275 million and the loan Disbursal.
Year to date has reached $1 billion.
Speaker 3: Now, we don't break out within that, what is the Digibank? The main reason is because the Digibank has just started lending, as you know, with the FlexiLone product. But as that portfolio gets larger, it is likely that sometime next year we'll start to break this out. So you'll be able to see Gfin on the one hand and then the Digibank FlexiLone portfolio size on the other hand.
Now we don't break out within that what is the did you bank. The main reason is because the did you bank has just started lending as you know with the flex loan product, but as that portfolio gets larger it is likely that sometime next year, we'll start to break this out for you, but it would be able to see chief in on the one hand and.
Then.
Did you bank flexi loan portfolio.
On the other hand.
Speaker 3: You know, the main method for judging the success of the DigiBank is at this stage is the consumer take up. We're very pleased that the take up of deposits has been strong and the take up the Flexi loan product also strong.
The main reason the main method for judging the success of the tissue Bank is at this stage is the consumer take up.
We're very pleased that the take up of deposits has been strong.
And to take up the flexi loan product also strong.
Speaker 3: We are monitoring the credit models to make sure that the Flexi Loan is performing. It seems to be performing well.
We obviously monitoring the credit models to make sure that the flexi loan is performing seemed to performing well.
Speaker 3: And then we'll work with the regulators to understand how to move out of the progressive phase that we're in to ultimately end up as a full digital bank where we can grow both sides of the balance sheet faster.
And then we'll work with the regulators to understand how to move out of the progressive phase that we're in to ultimately end up as a full digital bank, where we can grow both sides of the balance sheet faster.
Speaker 3: I'll just jump to your third question as well.
I'll just jump to your third question as well.
We are working closely with Ccs to answer all their questions.
Speaker 3: We are working closely with CCS to answer all their questions. We provide a lot of information to them. We'll continue to be very open with them. We are committed to making sure that drivers can openly drive on any platform that they want to drive on. There will be no lock-in to the grab platform. And I think beyond that there shouldn't be any need for commitments to the regulators.
We provided a lot of information to them. We will continue to be very open with them. We are committed to making sure that drivers can openly drive on any platform that you want to drive on there will be no lock into the grab platform.
And I think beyond that there shouldn't be any need for four commitments to the regulators.
Speaker 3: Because in our view, this transaction is good for the drivers. It helps them to improve their earnings and efficiency and productivity. And it's good for consumers because it increases the availability of supply in Singapore by making those drivers more available using better technology.
Because because in our view this transaction is good for the drivers it helps them to improve their earnings and efficiency and productivity.
And it's good for consumers because it increases the availability of supply in Singapore by making those drivers more available using better technology.
Yeah.
Speaker 4: And you're questioned around M&A and how we think about it. So there's a few things when we look at inorganic opportunities.
And your question around <unk>.
M&A and how we think about it.
So theres a few things when we look at inorganic opportunities.
You mentioned that Theres hurdle rates that we use while theres financial guardrails that we use but also we look at others.
Speaker 4: You mentioned that there's hoodl rates that we use, while there's financial guard rails that we use, but also we look at others.
Speaker 4: And a couple of those which are very important to us is how does it impact the ecosystem?
And a couple of those which are very important to us is how does it impact the ecosystem or the marketplace that we have today. So it's really important that whichever.
Speaker 4: or the marketplace that we have today. So it's really important that whichever, whatever we look at, any opportunities, that it has to benefit the marketplace. Great example of that is gyro grosses that we did. So if you look at the gyro grosser today, we managed to increase their online delivery, which was hardly any when we took up the business. And that's benefited our consumers in Malaysia.
If we look at any opportunities that he has to benefit the marketplace. Great example of that is Jai a grocer that we did so if you look at the J a grocer today, we managed to increase their online delivery, which was hardly any when we took up the business and thats benefited our consumers in Malaysia and its.
Speaker 4: And it's benefited also our driver partners also at the same time. We look at also what opportunities will those targets also can add into our whether it's our merchant base or how we can drive more demand for our driver partners.
It also.
Our driver partners also at the same time.
We look at also what what what opportunities will those targets also can add.
Whether it's a merchant base or how we can drive more demand for our driver partners. So those are really important while financial accretion is also as critical as important to US we will look at all those dynamics when we evaluate an M&A opportunity.
Speaker 4: So those are really important. While financial accretion is also as critical as important to us, we look at all those dynamics when we evaluate an M&A opportunity overall as a package. So I hope that helps to give a bit of a color how we think about it.
Overall as a package so hope that helps to give a bit of a color of how we think about it.
Speaker 11: Yeah, thank you. May I just quickly follow up on your last point, you know, about the financial creation part. You know, the can you please comment on the treasury strategy as you as you kind of surface in the news more often than before with regard to potential large out go towards them and they, you know, how is the treasury strategy changing? And is 4% to kind of
Yes. Thank you May I just quickly follow up on your last point Youll know about it.
Actual accretion, but you.
No.
Can you please comment on the <unk> strategy as you as you kind of.
Surface newer more often than before with regard to potential large out go towards their mandate.
How is the <unk> strategy changing and at four 5% kind of well.
Speaker 11: going to just kind of vanish from the balance sheet if you were to indulge in Vitticke Temundi.
Income.
I'm going to just kind of vanished from the balance sheet. If you were to indulge in big ticket day Monday.
Speaker 4: We're in the cash in the balance sheet that we have. We're going to be very good stewards about capital and whatever the treasury yields today, we'll make sure we'll maximize it. But also at the same time, we're going to make sure that every dollar that stays and that balance sheet also is off the good use.
And the cash on the balance sheet that we have we are going to be very good stewards of our capital.
And whatever the treasury yields it here today.
We'll make sure we maximize it but also at the same time, we're going to make sure that every dollar that stays on our balance sheet also is off to good use.
Speaker 4: where there is investing in whatever we can in groceries or whatever other investment products. But I think what's really important is we're being very prudent into how we deploy our capital at the end of the day. And that's really what's critical to the shareholders, so that we are being very careful into how we deploy it.
Whether it's investment investing in and whatever we can in treasuries or what about the other investment products, but I think what's really important is we're being very prudent interest how we deploy our capital at the end of the day and that's really what's critical to the to the shareholders. So that we are being very careful in terms of how we deploy it.
Speaker 1: This concludes grabs the last course of 2023 earnings conference call. Thank you for your participation. You may now.
This concludes <unk> third quarter 2023 earnings conference call. Thank you for your participation you may now disconnect.
Speaker 1: So, thank you for your participation.
Yeah.
So thank you for your participation you may now disconnect.
Okay.