Q1 2024 Grab Holdings Ltd Earnings Call
<unk> earnings results call. After the Speakers' remarks, there will be questions and answer session I will now turn it over to Douglas <unk> to start the call.
Douglas <unk>: Good day, everyone and welcome to <unk> first quarter 2024 earnings call I'm Douglas <unk> Director Investor Relations <unk> Finance I grabbed and joining me today are Anthony <unk>, Chief Executive Officer, Alex <unk>, Chief operating Officer, and Peter <unk>, Chief Financial Officer during the call today Anthony will.
Speaker Change: Because our key strategic and business achievements, followed by Alex who will provide operational highlights and Peter will share details of our first quarter 2024 financial results.
Speaker Change: Following the prepared remarks, we will open the call to questions. During this call we will be making forward looking statements about future events, including our future business and financial performance. These statements are based on our current beliefs and expectations actual results could differ materially due to a number of risks and uncertainties as described on this earnings call India.
Speaker Change: Earnings release, and in our form 20-F, and other filings with the SEC we.
Speaker Change: We do not undertake any duty to update any forward looking statements. We will also be discussing non <unk> financial measures on this call. These measures supplement, but do not replace Ifr's financial measures. Please refer to the earnings materials for a reconciliation of non <unk> to <unk> financial measures for more information. Please refer to our earnings press release.
Speaker Change: And supplemental presentation available on our website and with that I will turn the call over to Anthony to deliver his remarks.
Doug: Doug Thank you.
Speaker Change: You you for joining us today.
Anthony: First quarter of 2024 was a standout quarter for us as we drove both top line growth as well as bottom line adjusted EBITDA profitability recording our ninth.
Doug: Decorative quarter of adjusted EBITDA improvement.
Doug: Consumer activity was strong across southeast Asia in spite of seasonality arising from Chinese and U S. Six in January and the remainder on Boston <unk>, which commenced in March.
Doug: As such we continued to achieve multiple milestones in the quarter.
Doug: Such as expanding the number of users on our platform to a record high of 38 million monthly transacting users while at the same time order frequency for on demand also continues to track up healthily as we improve the affordability.
Doug: Affordability and reliability of our services.
Doug: As a result, we have continued to bolster our competitive position and triple bottom line in South East Asia, and enabling us to further improve usage frequency and engagement and increasing earnings drivers and much and partners at.
Doug: At the same time, while also driving joint initiatives with the governments and regulators in the region.
Doug: We have been partnering with tourism authority of Thailand, who promote high tourism, among local and foreign tourists and boosting the economy to engagement activities and elevating travel experiences with grabs mobility services.
Doug: And in Indonesia true grabs got them upside upon program.
Doug: We worked closely with local governments and several ministries to offer training and support to MSM E business owners and second.
Doug: Cities in the country, which enables them to effectively manage the business and to make the most of the opportunity on the golf platform.
The program was born in 2021 during the Covid pandemic and since then has already benefited 2000 6000 MSM ease in nine cities nationwide.
Doug: As highlighted in our fourth quarter 2023 results. This is the year, where we will build up on our foundations and execute on driving engagement and expanding the top of our funnel by leveraging both product innovation and generated AI capabilities. We're.
Doug: We're making strong progress as on demand <unk> expanded to new record of $4 2 billion in the quarter, increasing by 21% year on year in constant currency terms.
Speaker Change: As Alex will share later.
Speaker Change: Numerous new strategic initiatives that we are incubating, which are already beginning to drive LTV uplifts.
Speaker Change: Products, such as all small language model translation feature for tourists.
Speaker Change: Saver and party deliveries and our flexi loan product from <unk> Bang have sharpened our competitive edge and led to the strong outperformance in the quarter.
Speaker Change: Finally on creating incremental shareholder value, we initiated our $500 million share buyback program during the quarter and repurchased approximately $97 million of class a ordinary shares.
Speaker Change: We are focused on taking the necessary steps to address our shareholders hold the overhang and proactively engage with <unk> shareholders as well as welcoming new institutional investors to bolster our shareholder base.
In closing our first quarter results demonstrates.
Speaker Change: Our relentless focus on driving profitable growth, while staying true to our mission of empowering everyday entrepreneurs in the upcoming weeks, we will be releasing our 2023 ESG report, where we share more about the progress we have made on our mission.
Speaker Change: We're over 1 million new driver partners and over 500000, New MSM E merchant partners for just on the <unk> platform last year and at scale, we continue to execute on our triple bottom line with 90, 999% of all Reits occurring without any safety issue.
Speaker Change: While we reduced our carbon intensity per kilometer and deliveries and mobility and dream phase III.
Speaker Change: We are incredibly excited about what lies ahead in the years to come and remain deeply committed to driving great improvements in our core.
Speaker Change: All businesses to generate sustainable EBITDA and free cash flow.
Speaker Change: I'll hand over to Alex who will cover our first quarter operational highlights in more detail.
Alex: Thank you Anthony our first quarter performance was robust in spite of seasonal festivities demonstrated by on demand <unk> recording sequential growth, even as we improved bottom line.
Alex: Year on year against a major regional competitors, we continue to improve on our category leadership across countries, where both food delivery and mobility.
Alex: Over the next few minutes I will share our operational highlights and the underlying drivers of these results starting with deliveries.
Alex: And deliver as demand was resilient despite seasonal impacts from the Chinese new year festivities and the Ramadan fasting period in the first quarter.
Alex: Delivery is empty use recorded growth on both a sequential and a year on year basis, and we continue to increase total transactions.
Alex: This came as a direct result of the initiatives that we have shared over the past few quarters.
Alex: To improve the affordability and reliability of our services to drive stronger engagement through our loyalty program grab unlimited and roll new use cases out to widen the top of the funnel.
Alex: We will continue to leverage our category leadership network advantages and tech capabilities to create differentiated services that maximize choice convenience and reliability for all users and.
Alex: In the past year, we've been focused on affordable and have built strong traction with products like savour.
Alex: David deliveries now account for slightly over a quarter of deliveries transactions and continued to drive frequency uplifts amongst users.
Speaker Change: Is this who opted for say that havent.
Speaker Change: Average order frequency that was one eight times higher than non <unk> users and.
Speaker Change: An average delivery fees to save a delivery have also reduced to 25% year on year as we translate efficiency gains into greater cost savings for our users.
Speaker Change: It is also been effected in widening the top of funnel with over a quarter of new monthly transacting users joining the platform through save a delivery despite the seasonal softness.
Speaker Change: At the same time, although it's still early days, we continue to grow adoption of priority deliveries with the transactions growing 213% year on year, and 12% quarter on quarter to reach 7% of deliveries transactions.
Speaker Change: And priority deliveries continue to yield higher EBITDA margins relative to standard deliveries.
Speaker Change: Our grocers are mop business is also growing from strength to strength with <unk> growing at a faster rate relative to our core food business and is also profitable.
Speaker Change: We are fortunate to have a wide range of MSM. He's on the platform along with some of the leading supermarket chains in the region, such as Trans Mountain and Indonesia Central Group in Thailand, SM group, and Robinson, and Philippines and of course, our very own Jaya grocer in Malaysia.
Speaker Change: Jive grocer in particular has been performing well in the first quarter <unk> recorded same store sales growth up by 12% year on year.
Speaker Change: And is now the largest merchant on Malaysia with its sales are not increasing over 100% year on year.
Speaker Change: We will continue to innovate on our grocery offering looking to offer the best in class fulfillment, while also improving on our selection and speed to deliver across our various markets.
Speaker Change: For our merchants, we've been able to create even more value for them with the trust that we have established coupled with our growing scale and network advantages.
Speaker Change: We have enhanced our advertising platform by simplifying the process for merchants to run and manage a business using our self serve advertising tools.
Speaker Change: As a result on a year on year basis, we continue to drive strong growth in ad.
Speaker Change: Total active advertisers on our platform grew 46% year on year to 119000.
Speaker Change: While the average spend of these advertisers increased one five times.
Speaker Change: Looking ahead to the rest of the year, we will continue to build on our position as the leading on demand platform in the region powered by innovative technologies and we are well placed to continue creating value for our users and partners.
Speaker Change: As an update with April DNV growing month by month, we anticipate sequential growth in deliveries <unk> in the second quarter underpinned by a rebound in demand as well as our continued focus on the affordability and reliability of our services.
Speaker Change: Now moving onto mobility, our mobility business continued to record strong year on year and quarter on quarter GMB growth.
Speaker Change: Our efforts to capitalize on growing inbound tourism through strategic initiatives of the past few quarters has paid off.
Speaker Change: Such as partnerships with Ctrip Ali pay wechat, and booking dot com to target that traveler segment, and improving brand visibility of major international airports across the region.
Speaker Change: With inbound tourism volumes in the region still below pre COVID-19 levels, we've been able to grow traveller and to use on a platform to above pre COVID-19 levels.
Speaker Change: Year on year mobility traveller and to use and spends grew 69% and 80% respectively. During the quarter.
Speaker Change: As we saw strong inbound tourism tailwind from events held in Singapore.
Speaker Change: As well as the rollout of visa free entry for Chinese tourists across several of our markets.
Speaker Change: We will continue to leverage key technology and product initiatives to improve the quality of our services to tourists.
Speaker Change: In February we rolled out small language model translation feature in Thailand with this feature now available in all six of our core markets. This has resulted in significant cost savings from no longer having to outsource translation service to external vendors.
Speaker Change: And by leveraging these in house models, we reduced translation processing times from 100 days with a vendor to just five days for Onboarding any new language regionally.
Speaker Change: This allows us to expand language support and meet the needs of diverse travelers as this segment continues to grow.
Speaker Change: In tandem with enhancing our products and services for users. We also improve the productivity and earnings of our drivers on our platform, while reducing our cost to serve to improve the affordability of our services.
Speaker Change: Average drive earnings per trends of tower improved 9% year on year.
Speaker Change: In addition, our efforts to optimize driver supply and enhance driver efficiencies to meet growing user demand continued to gain traction.
Speaker Change: During the quarter monthly active driver supply grew 11% year on year.
Speaker Change: Total online hours growing 13% year on year.
Speaker Change: <unk> and the proportion of search mobility rights further reducing by 622 basis points year on year.
Speaker Change: Correspondingly average frequency permeability user grew 10% year on year.
Speaker Change: We are also focused on harnessing our tech stack to enhance the productivity of our driver partners.
Speaker Change: An example of this is grabbed navigation our in house mapping navigation tool.
Speaker Change: By integrating <unk> into our operations.
Speaker Change: We've been able to significantly streamline our processes, resulting improved trips per transit, how and fulfillment rates.
Speaker Change: <unk> has proven to be popular with our driver partners exemplified by its high adoption rate, 86% close to 90% of our drivers now utilized scrap NAV to optimize their routes and deliver a more seamless service to our customers.
Speaker Change: To conclude for the mobility segment.
Speaker Change: We remain confident on the long term trajectory of the business and see headroom for volumes and use the penetration to continue to grow.
Speaker Change: Our strategic initiatives to drive affordability and improve reliability positions us well for longer term growth.
Speaker Change: Lastly on financial services.
Speaker Change: On a year on basis year on year basis revenues grew 53%.
Speaker Change: While adjusted EBITDA losses narrowed to 34% on the back of higher contributions from our ecosystem payments and lending businesses.
Speaker Change: In both scrap Finn and our digital bank in Singapore, our lending business continues to gain traction.
Speaker Change: Total loans disbursed in the first quarter grew 64% year on year to reach $483 million and we ended the quarter with a loan portfolio of $363 million.
Speaker Change: Underpinned by the expansion of ecosystem system lending in Finn and growing flexi loan volumes from <unk> Bank in Singapore.
Speaker Change: And while we grew our loan portfolio, we continue to maintain a prudent stance on credit risk with 90 days nonperforming loans at around 2%.
Speaker Change: Customer deposits across ITT banks grew to $479 million in the first quarter from $374 million in.
Speaker Change: In the prior quarter.
Speaker Change: Driven by an increased number of deposit customers for GE ex Bank <unk> Bank in Malaysia, which grew to 262000 customers as of March from 131000 customers at the end of 2023.
Speaker Change: But gx bank in Singapore, the deposit cap was raised earlier this month, which will enable us to further grow our deposit base in the country.
Our tissue banks ability to leverage the grab ecosystem continues to provide tailwind to their growth.
Speaker Change: Notably around 80% of users with a loan from <unk> bank and over 90% of depositors and Gx Bank.
Speaker Change: <unk> customers.
Speaker Change: Underscoring the cross platform synergies and lower acquisition costs associated with our bank launches.
Speaker Change: As we continue to improve our top line. We also saw improvements in profitability quarter on quarter adjusted EBITA improved by 42%.
Speaker Change: This was supported by lower than expected credit losses in Finn, even as we continued to scale our lending revenues.
Speaker Change: Along with greater cost us optimizations and monetization of our payment services.
Speaker Change: Net cost of funds.
Speaker Change: Because it supports our payments platform and.
Speaker Change: And offset by fees earned from payment services remained stable year on year and quarter on quarter at <unk>, 7% of total payments volume.
Speaker Change: Of course, we also mentioned that we expected did you bank expenses to come down following peak losses associated with the launch of our Malaysia did your bank at the end of <unk>.
Speaker Change: We delivered on that commitment.
Speaker Change: And saw sequential reduction in overall DG bank expenses.
Speaker Change: Going forward, we see significant headroom to further scale, our lending business and optimize expenses within RTG banks as they begin to gain traction.
Speaker Change: In closing, we remain laser focused on scaling our platform and growing our top line, while leveraging our tech led and initiatives to improve operational efficiencies across our organization and drive profitable growth. We are committed to leveraging our scale advantage and market leadership positions in both mobility and food deliveries.
Speaker Change: To deliver value to all of our stakeholders, especially the 38 million users on our platform today.
Speaker Change: With that let me turn the call over to Peter.
Peter: Thanks, Alex.
Peter: Before going over our first quarter results I will first provide an update on our segment reporting changes that we highlighted in our prior earnings call.
In Q1, we made several reporting changes to align with how we manage and evaluate our business performance.
Peter: To facilitate better comparison with our industry peers.
Peter: We're reporting changes are as follows.
Peter: From the first quarter, we will report our segment results as deliveries mobility financial services and others.
Peter: Revenues from others is a combination of multiple operating businesses that are not individually material.
Peter: Advertising contributions previously reported within the enterprise and new initiatives segment are now reported in their respective mobility deliveries and financial services segments.
Peter: This aligns with our view of advertising is growing significance in driving both top and bottom line growth for our on demand and financial services segments.
Peter: As a result, the majority of advertising revenues is also now reported within our deliveries segment.
Second a portion of payment transaction revenues and other relevant support cost previously reported in our financial services segment.
Peter: Facilitate mobility and deliveries transactions are now allocated to their respective on demand segments.
Third a portion of our regional corporate costs.
Support and mobility deliveries and financial services segments have not been allocated to these respective segments.
Peter: And lastly, we discontinued the reporting of financial services <unk>, consistent with our strategic focus on ecosystem transactions and lending.
Peter: As such we will aim to continue improving on the disclosures of our financial services segment, particularly on the performance of our lending and bank businesses.
In our supplemental presentation, we provide us an unaudited historical financial data that is on a comparative basis consistent with our revised segment structure.
Peter: Do note that these updates only affect segment allocation of our financial results and do not revise or restate, our previous reported consolidated financial statements.
Speaker Change: Turning over now to our first quarter results starting with revenues.
First quarter revenues grew 24% year on year, and 29% on a constant currency basis to reach $653 million.
Speaker Change: The strong revenue growth was driven by all segments of our business.
Speaker Change: On a year on year basis mobility revenue was up 27% and 30% on a constant currency basis. As we continued to see strong demand from local commutes and international travelers across the region bolstered by events held across various countries.
Speaker Change: <unk> revenue grew 19% and 24% on a constant currency basis.
Speaker Change: To grow GMB, despite a reduction in incentive spend we also saw higher contributions from Jaya grocer and advertising.
Speaker Change: Financial services revenue was up 53% and 56% on a constant currency basis as lending contributions across graphene and <unk> bank continued to grow while we improve the monetization of our payment services within graph Finn.
Speaker Change: Moving on to on demand GMP.
Speaker Change: This quarter on demand GMB grew 18% year on year, and 21% on a constant currency basis to $4 2 billion.
Speaker Change: On a segment level mobility GMB grew strongly by 27% year on year, and 30% year on year on a constant currency basis to $1 5 billion.
Speaker Change: Deliveries GMB grew 13% year on year, and 16% year on year on a constant currency basis to $2 7 billion.
Speaker Change: On segment adjusted EBITDA total segment adjusted EBITDA expanded over four times year on year to $153 million attributed to all segments of the business deliver.
Speaker Change: Deliveries segment, adjusted EBITDA grew to $42 million in the first quarter, while delivery segment adjusted EBITDA margins expanded by 235 basis points year on year to one 6%.
Speaker Change: Assuming the segment reporting changes had not occurred segment adjusted EBITDA margin for deliveries improved 77 basis points year on year to three 3%.
Speaker Change: Mobility segment, adjusted EBITDA grew 41% year on year to $138 million with margin expanding by 91 basis points to $80 to eight 9% in the first quarter.
Speaker Change: Assuming the segment reporting changes had not a kid segment adjusted EBITDA margin remained stable at 12, 4% for mobility in the first quarter of 2023 and 2024.
Speaker Change: Financial services segment, adjusted EBITDA losses, narrowed 34% year on year negative $28 million.
Speaker Change: The reduction in losses was driven primarily by two main factors first higher revenues, mainly from lending activities in that graph in business and <unk> Bank.
Speaker Change: Secondly, lower operating costs recorded in graphene underpinned by lowest staff costs cost of funds and expected credit losses as a percentage of revenues.
Speaker Change: Assuming the segment reporting changes had not occurred.
Speaker Change: Fuel services segment, adjusted EBITDA would have improved quarter on quarter and year on year to negative $58 million.
Speaker Change: On regional corporate costs, we saw improvements of 11% year on year, and 10% quarter on quarter to $91 million.
Speaker Change: Assuming the segment reporting changes have not occurred regional corporate costs improved 14% year on year and 3% quarter on quarter.
Speaker Change: These improvements in regional corporate costs was driven by reductions across both variable and fixed costs year on year, we continue to drive greater cost efficiencies across the organization.
Speaker Change: Total head count costs declined 20%.
Speaker Change: We continue to streamline our workforce, while variable costs, such as cloud infrastructure declined 15%, even as total transaction volumes continued to grow.
Anthony: And as a result of our commitment towards driving both top and bottom line improvements as Anthony mentioned, we delivered our ninth quarter of sequential group adjusted EBITDA growth.
Anthony: Group adjusted EBITDA stood at $62 million for the quarter, an improvement of $129 million from the same period last year and a quarter on quarter improvement of $26 million.
Anthony: On operating cash flows we recorded negative $11 million for the quarter, an improvement of $147 million year on year.
Anthony: This was primarily driven by a reduction in loss before income tax and an increase in deposits from customers in our banks as our Malaysia banks <unk> was launched in the fourth quarter last year.
Speaker Change: We also reported adjusted free cash flow of negative $98 million in the first quarter on a year on year basis. This.
Speaker Change: This represents an improvement of $115 million, allowing increased profitability and on a quarter on quarter basis, adjusted free cash flow reduced by $99 million, primarily due to seasonality of cash payments, which includes prepayments and annual bonus payments.
Speaker Change: Moving onto our operating loss and <unk> net losses for the period.
Speaker Change: On a year on year basis trading loss in the first quarter improved by $129 million negative $75 million.
Speaker Change: Attributable mainly to improvements in revenue.
<unk> net loss for the quarter improved by $134 million negative $115 million last year, driven by improvements in group profitability reduced share based compensation costs.
Speaker Change: And lower net interest expenses.
Speaker Change: The <unk> loss of $115 million also includes $180 million of non cash expenses below the adjusted EBITDA line.
Speaker Change: This $94 million was from share based compensation expenses and $40 million was from depreciation and amortization expenses.
Speaker Change: Turning now to our balance sheet and liquidity position, we continue to maintain a strong liquidity position ending the quarter with $5 3 billion.
Speaker Change: Gross cash liquidity, which reduced from.
Speaker Change: From $6 billion in the prior quarter.
Speaker Change: The decline in gross cash liquidity was mainly attributable to the repayment of the remainder about term loan b facility of $497 million and the $97 million repurchase of class a ordinary shares in March.
Speaker Change: Net cash liquidity was $5 billion at the end of the first quarter compared to $5 2 billion at the end of the prior quarter.
Speaker Change: As we look to the rest of 2024, we remain committed to growing our business sustainably anchored on generating profitable growth.
And free cash flow.
Speaker Change: In the second quarter in the second half of 2020 full we expect to drive sequential GMB and EBITDA growth as we continue to drive product innovation and expand use cases on our platform.
Speaker Change: While improving frequency and retention amongst our existing users.
Speaker Change: With a strong first quarter under our belt and our outlook for the rest of the year. We are raising our full year 2024, adjusted EBITDA guidance from $180 million to $200 million.
Speaker Change: Now $250 million to $270 million.
Speaker Change: While maintaining our current revenue guidance of two seven to $2 $75 billion, which represents a year on year growth of 14% to 17%.
Now this is primarily driven by several factors.
Speaker Change: First stronger than expected mobility demand from increases in local commutes and tourism throughout the region.
Speaker Change: Second further optimization in net cost of funds.
Speaker Change: And expected credit losses, as a proportion of our financial services revenues.
Speaker Change: And third greater discipline on operating expenses in our regional corporate costs as we continue to leverage tick and generative AI to improve operating efficiency and better serve our partners and customers.
Speaker Change: From a segment margin perspective for the rest of this year, we expect mobility and delivery segment. Adjusted EBITDA margin remained stable as we continue to incubate new product and take rate initiatives to improve affordability and reliability of our services.
Speaker Change: We expect losses in financial services for the full year to improved year on year, driven by continued cost optimization and increased contributions from our lending and bank businesses.
On overhead costs, we will continue to exercise stringent discipline as we drive greater operating leverage in the business.
Speaker Change: We expect regional corporate costs to be a relatively stable year on year as compared to our prior expectations of a slight increase in line with inflation.
Speaker Change: Quarterly stock based compensation, so expect it to track lower over the course of the year.
Speaker Change: Importantly, total stock dilution was around 2% in 2023, and we expect dilution in 2024 to be around or below these levels, depending on the timing of additional stock repurchases.
Speaker Change: For the full year adjusted free cash flow.
Speaker Change: We remain committed to driving substantial improvement year on year as we generate increased operating cash flows.
Speaker Change: On longer term margin expectations for our on demand business we.
Speaker Change: We expect long term mobility margins to be around 9% plus.
Speaker Change: Or just slightly above the first quarter of eight 9%. This long term margin is comparable with our previously communicated margin guidance of 12% plus under our prior reporting structure.
Speaker Change: While deliveries, we expect long term deliveries margin to improve to 4% plus reps.
Speaker Change: Representing over 300 basis points improvement from 2023 margins of 0.8% and over 240 basis points improvement from the first quarter margins of one 6%.
Speaker Change: These long term margin is comparable to 6% plus under our prior reporting structure.
Speaker Change: The additional long term deliveries margin upside is primarily driven by expansion of 100 basis points by high expected advertising revenue contributions in the midterm.
Speaker Change: Expansion of 100 to 200 basis points consistent with what we guided towards our during our fourth quarter of 2023 earnings call, while improving marketplace efficiencies and achieving greater operating leverage as the business continues to scale.
And finally for our financial services segment.
Speaker Change: We expect to achieve breakeven no later in the second half of 2026 on our segment adjusted EBITDA basis.
Speaker Change: We will continue to scale up our lending services across graphene and the banks in a prudent manner and managing credit risk, while continuing to drive operating leverage across the segment.
Speaker Change: In closing our performance in the first quarter gives us confidence in our ability to continue to grow both our top and bottom lines for the rest of 2024 and in the longer term.
Speaker Change: Anthony Alex and I would like to express our deep appreciation to our fellow grabbers Custer.
Speaker Change: Customers.
Speaker Change: To all our partners for their contributions and support.
Speaker Change: Thank you very much for listening and we'll now open up the call to questions operator.
Speaker Change: Thank you, ladies and gentlemen, we will now start our questions and answers portion of the call. Please press star followed by one on your telephone keypad now to ask the question and we'll call on you for your question when asking questions. Please limit to two questions per person.
Your first question comes from the line of Alicia Yapp from Citigroup Alicia Your line is open.
Alicia Yapp: Thank you good morning.
Alicia Yapp: Hi management, Thanks for taking my questions Congrats on the results.
Alicia Yapp: Quick question first on mobility.
Alicia Yapp: You Register a very strong quarter.
Speaker Change: Growing 5%.
Speaker Change: Sequentially and 77% year over year.
Speaker Change: Hi, <unk>.
Speaker Change: Generally weakest quarter would you say that you are gaining market share.
Speaker Change: I'm curious about how the competitive landscape.
Speaker Change: Has change across the region and whether you have changed your level of subsidies in recent months as a result of competitors, leaving.
Speaker Change: Do you think this is this will impact your margins.
Speaker Change: And for delivery business.
Speaker Change: Understand management's previously noted that grab will remain focus on our core business and there'll be less interested to expand into.
Speaker Change: Local services segment, so, but given advertising please let us know.
Speaker Change: Deepak.
Speaker Change: Delivery business would that make sense for the company to consider exploring into complementary service like the restaurant Btu table reservation service too and hence you'll advertising revenue opportunity. Thank you.
Alex: Thanks, Alicia this is Alex let me take both those questions.
Speaker Change: Firstly against our next biggest competitor in the region in both food and mobility, we believe that we increased our competitive position in every single market year on year how.
Speaker Change: How do we do that well, we think that travelers in particular have been one of the big drivers our investments and travelers are paying off and there is still upside left in traveler demand, especially from China.
Speaker Change: You heard earlier, let the mobility travel and to use and spend grew by 69% and 80% year on year and that was definitely a driver.
<unk> for our premium travelers.
No that travelers.
Speaker Change: And about double what domestic users spend on grubhub.
Speaker Change: Per day, when they're traveling.
Speaker Change: We've also managed to capitalize on events in the region that occurred in the first quarter and we think we executed well on supply initiatives during the Chinese lunar new year, and Ramadan festivities. Thanks to improvements from some of our auto adaptive AI tools combined of course with the with the great on the ground efforts from our operations teams.
Speaker Change: In terms of incentives we are focused on product led response right. We had the largest platform in the region. We have the largest investment in technology initiatives as Antony was saying yes.
Speaker Change: So.
Speaker Change: It's not an incentive.
Speaker Change: <unk> driven response to competitive activity.
Antony: Can lean in on incentives when we need to but we believe that we can remain competitive by doubling down more on product and engineering innovation leveraging on that scale that I mentioned.
Antony: And then we can pass those cost efficiencies onto uses in terms of affordability that bring more users into the platform.
Antony: And then as we invest in affordability at the same time as you've heard we're investing in premium services like priority and scheduled rides.
Antony: Which have higher value and correspondingly higher margins.
Antony: Our long term margin guidance already baked in.
Speaker Change: The competition that we know is strong already across the region.
Speaker Change: And that we expect.
Speaker Change: With continuous part of the landscape going forward. So we don't expect this to change in those long term margins.
Speaker Change: <unk>, we remain committed to those.
Speaker Change: Great question on deliveries margins and deliver its growth from Adjacencies second question Youre right were very happy with the traction we're getting from the AD demand generally.
Speaker Change: Demand Gen capabilities that we've been rolling out.
As you heard earlier, 46% year on year increase in the number of active self serve advertisers growing to a total now of 119000, but thats still.
Speaker Change: <unk> of <unk>.
Speaker Change: Our self serve long tail. So we've got many many more to sign up and we will continue to sign them up.
Speaker Change: And the average spend of those advertisers on our platform has also increased so you can tell that the underlying growth in advertising revenues coming into the into the platform is very high we believe that.
Speaker Change: We have a good chance to keep that kind of rate of momentum rate of growth going forward.
Speaker Change: So there is further upside from further penetration of self serve but there's also further upside from things like mobility ads.
Speaker Change: Currently.
Speaker Change: You use the App you very rarely see.
Speaker Change: As you are taking a mobility service.
Speaker Change: But there's lots of interest from advertisers to advertise to customers who are in transit OSA book a book a ride. So that's something that gives us further upside as well.
Speaker Change: In the medium term, we think the groceries ads is opportunities probably ultimately larger even than the food delivery opportunity.
Speaker Change: With lots of interests from FMC G advertisers, who as you know have larger budgets.
Speaker Change: So that's why we're investing in the partnerships that we talked about earlier for example, fair price group in Singapore.
Speaker Change: And some of the others that we mentioned in the other markets.
Speaker Change: We're trying to demonstrate and lead the way with the close the close integration that we've invested in with giant around our own grocer in Malaysia. So we've done lots of integration with loyalty and demand Gen.
Speaker Change: And as you heard Thats really helping China same store sales growth was 12% year on year.
Speaker Change: And is now the largest merchant on grab Mont.
Speaker Change: So sales a month for China grew more than 100% year on year.
So we are we see lots of opportunity for these adjacencies.
Speaker Change: We want to be able to help how much is not just to grow on the online space, but to bring more people into their stores to dine out.
Speaker Change: <unk> talked about that in the past.
Speaker Change: That's where we're finding product market fit with our new services right now and so you should expect us to be ramping that up in the second half.
Speaker Change: Thanks Felicia.
Speaker Change: Thank you.
Your next question comes from the line of.
Speaker Change: Penguin from Goldman Sachs. Your line is open.
Speaker Change: Okay.
Speaker Change: Good morning, Nelson. Thank you Sam first of all Loopy congratulation.
Speaker Change: <unk> final question for me number one on your upgrades.
Speaker Change: Can you provide more color on that.
This meaningful increase of your guidance.
Speaker Change: <unk> in particular can you walk us through what has changed in the last two months things to our previous guidance and how it look like for each of the top and bottom line as well.
Speaker Change: So what does this new guidance for growth beyond this year.
Speaker Change: Second question. It comes from Tech, we saw a sharp.
Speaker Change: A reduction in losses this quarter throughout this whole play with our partner come from low right.
Speaker Change: Credit loss.
Speaker Change: Does this mean that the walk in term of Gabon is already behind us.
Speaker Change: In other words, how sustainable this improvement and if.
Speaker Change: This is the case why don't you bring following throughout breakeven guidance call it different occurring trial.
Speaker Change: Thanks, Patrick let me take the first one around the EBITDA guidance and then I'll ask Alex just to chime in on your second part and take question on the EBITDA guidance.
Speaker Change: What we did say in the first quarter with a very strong mobility demand.
Speaker Change: It was more than we had originally anticipated we saw strong momentum in tourism. There was a lot of demand that we are that was that we saw that.
Speaker Change: That was also helped by a lot of the events that took place in southeast Asia in various countries.
Speaker Change: But also local commute actually surprised us and we saw an uptick in local commute also at the same time, so that momentum that we're seeing in our mobility business and with the margin that that word deliberate around 9% gives us confidence that actually this tailwind of mobility will continue to maintain and we will see.
Speaker Change: Sequential <unk> growth.
Speaker Change: And EBITDA growth for our mobility business. So that's one part the other part I would say, it's a combination of costs in our business. How we are continuing to be optimizing the cost structure.
Speaker Change: We talked about in the prepared remarks, just in how net cost of funds have continued to improve for us.
Speaker Change: <unk> talked a little bit about that we also saw that expected credit losses also continued to improve and we disclose our nonperforming loans over 90 days.
Speaker Change: Ron about the 2% Mark so our credit scoring engine is getting better and we're continuing to exercise Prudence also but also scaling that loan book at the same time, both at graphene side as well as on the bank side now.
Speaker Change: I would say also on the cost the second part of the cost side. These were just seeing greater discipline. When it comes to operating expenses. So we are flexing operating leverage in the business. We saw regional copper cost was down 11% on a year over year basis, and we still have some cost down 20%. We saw other parts in our variable costs are.
Speaker Change: Coming down so we're going to continue to make sure that discipline has been is maintained but also that that's that discipline also that greater operating leverage is flowing through also to our EBITDA and hence the combination of those things, we feel very confident and we feel very good and raising our guidance.
And a $2 $50 million to $270 million for the rest of the year.
Alex.
Alex: Thanks Peter.
Speaker Change: And thanks for the question.
Speaker Change: We're executing on this fintech strategy that we announced during the Investor Day, I guess going all the way back to September 2022, where we said we would focus on ecosystem payments and ecosystem lending, where we really knew our customers deeply and a data science Senate and that is that is paying off you can see that in the results this quarter.
Speaker Change: We're getting a lower cost of payments relative to what we would get from third party providers.
Speaker Change: And our.
Speaker Change: <unk>.
Speaker Change: Credit modeling skills using data science, where we now actually and just something like 185 variables.
Speaker Change: Data models, many of them highly unconventional relative to what a bank could access.
Speaker Change: And that allows us to grow our book at these kind of rate, but maintain an NPL of only 22%.
Speaker Change: The banks have a similar strategy.
Speaker Change: As a regulated as regulated allow us to grow our balance sheet that allows us to extend our lending further using similar credit credit modeling.
Speaker Change: So we do expect the fintech profitability to improve progressively from here.
Speaker Change: With that as Peter said earlier financial services overall as a segment breaking even no later than the second half of 2026.
Speaker Change: Why are we not upgrading our forecast well I think it's still early days the public launch for the bank in Indonesia is coming up is still not fully launched the lending product in Malaysia still not launched.
Speaker Change: Early days for us.
Speaker Change: In the bank terms and also frankly, we want to let those credit models that I referred to we want to give them time to mature.
Speaker Change: Before we really accelerate the growth of lending we want to steadily improve our.
Speaker Change: Our approval rates and then test the models for different user segments with antennas different.
Speaker Change: Different content et cetera. So this is something that I think is prudent for any.
Speaker Change: Lending business that is growing as fast as we are and it's in the interests of our shareholders to give ourselves the space and the scope to do that at the right pace.
Speaker Change: Thank you.
Speaker Change: Your next question comes from the line of Mark Mahaney.
Speaker Change: From Evercore Mark your line is open.
Speaker Change: Thank you. This is Ian Peterson on the line from Mark. Thank you for taking my questions two from us.
Ian Peterson: First is could you provide some more color on.
Ian Peterson: The limited upside to your long term.
Ian Peterson: Mobility.
Ian Peterson: EBITDA margin targets.
Ian Peterson: That are broadly in line with where they are currently.
Speaker Change: How has grabbed thinking about rolling out.
Speaker Change: Higher margin mobility products, such as scheduled rides reserve rides given.
Speaker Change: Their market share.
Speaker Change: And airport trips and secondly.
Speaker Change: If you could just provide an update on how you're thinking about free.
Speaker Change: Free cash flow breakeven and kind of the path there. Thank you.
Thanks, Marc This is Alex let me take the first question and then <unk>.
Speaker Change: Peter will step in for the second part.
Speaker Change: You are right, we see lots of opportunities for premium rides in the region.
We are doing all the work now on building up our access to premium vehicles, well trained drivers etcetera to make sure that the.
Peter: In vehicle experiences is what the passengers passengers what to expect.
Peter: We've built the tech around.
Peter: Around no doubt high reliability type of ride that that business travelers expect when they're trying to get to an important meeting or trying to get to catch a flight et cetera, with the scheduled rides release, it releases going well, we're getting it up to up to scale in all of our key markets now.
Peter: Margin on those rides as you've seen from some of our.
Peter: He is around the world can be very attractive.
Peter: If you look at for example, the ore reserve.
Peter: <unk> business is a very attractive business that they've managed to build up.
Speaker Change: I think youre right, we think that our strong position, we have with travelers gives us an edge going into that opportunity.
Speaker Change: Remember, we also have grabbed for business scrap of business is very important for us.
Speaker Change: We have in the platform, we have all the tools that reporting and administrative tools that large businesses need to manage their transport options for the for their people.
Speaker Change: And now with scheduled rides added to that platform capability. We think we have a really good combination. So the other big penetration outside of travelers that were going to be pushing is the penetration of our grab for business customer base, which will be a big focus for us over the coming quarters and years.
Speaker Change: And your second part of question around free cash flow breakeven.
Speaker Change: You saw in the numbers adjusted free cash flow.
Speaker Change: Big improvement substantially on year on year was up 53 was improved by 53% in the first quarter.
Speaker Change: I do want to highlight that fell for our free cash flow there is some seasonality.
Speaker Change: Tied to just the way payments are made in our business our free cash flow is usually weaker than the first half of the year.
Speaker Change: And we and what we do expect though is a meaningful meaningful improvements in the second half of this year, our free cash flow generation in our business.
Speaker Change: We're committed to getting to a free cash flow profitability and the best way to look at it on a trailing 12 months.
Speaker Change: And we will get there.
Speaker Change: We all investors do also whereas the Keene, So we'll do it all.
Speaker Change: Efforts, whether you've seen a lot of the profitability EBITDA improvement that you're seeing in our business. We've been very disciplined in terms of how managing our costs and as we grow. This EBITDA sustainably. We're also keeping a very close eye on Capex and.
Speaker Change: The combination of those we feel as we maintain and and rain does cost in a very optimized way, we'll get to that free cash flow on a trailing 12 months basis as soon as possible.
Speaker Change: Next question.
Speaker Change: Your next question comes from the line of <unk> Chaudhry from HSBC, Singapore. Your line is open.
Speaker Change: Hi.
Speaker Change: Good morning, Congratulations on excellent results and thanks for the opportunity two questions.
Speaker Change: Firstly.
Speaker Change: Could you give us some color on the split of MTO growth how much is it coming from new city expansion, how much is new product driven and engagement deepening engagement with existing users and how much driven by travel tourism and outlook for <unk>.
Speaker Change: <unk> growth.
Speaker Change: Medium term.
Speaker Change: Secondly on mobility.
Speaker Change: What has been the impact on Singapore mobility degrade margins.
Speaker Change: And the business from moving to variable Commission structure.
Speaker Change: From a fixed commission structure.
Speaker Change: Your thoughts there will be helpful and would you progressively rollout the same structure in other countries.
Speaker Change: Thank you.
Alex: Hi, Paresh its Alex I'll take the first again and then Peter will take the second.
Speaker Change: <unk>.
Speaker Change: So the <unk> growth has been a real highlight this quarter as you know usually the first quarter is seasonally weakened this quarter, we had ramadan occurring earlier in March so we had to him.
Peter: A bigger impact theoretically from from Ramadan.
Peter: And so and so our execution around affordability has been one of the big drivers for I think that outperformance relative to seasonal expectations.
Peter: Mobility is the largest driver of MCU growth more so than deliveries.
Peter: Both of them.
Peter: Healthily.
Peter: Year on year basis.
Peter: On a quarter on quarter basis mobility and to use actually grew pretty well on a quarter on quarter basis delivery empty use were flattish slightly down.
Peter: That's kind of the mix in terms of giving you some color.
I think affordability was the key to that outperformance from a delivery perspective, obviously.
Peter: During these types of festivities, we do expect deliveries to drop anyway, and we've seen that year after year from fourth quarter, which is a big quarter going into the seasonal first quarter lows.
Peter: <unk> deliver is remain roughly similar just dropped very slightly in terms of <unk> growth I think shows that our affordability strategy is bringing new people onto the platform travelers year on year is up so that obviously was a positive as well.
Peter: And then things like the influx of.
Peter: People into the region for the for the special events in the way that we manage supply during those like the big concerts et cetera that that obviously was also beneficial.
Speaker Change: Yeah. So on your second question regarding Singapore mobility takeaway.
Speaker Change: Take rate was was flat.
Speaker Change: Didn't see any major changes in take rate margins were stable also.
Speaker Change: Regarding with your comments about variable commission structure.
Speaker Change: And that's critical because we also have mountain <unk>.
Speaker Change: Monitor very closely how our drivers earnings.
Speaker Change: Throughout all the various countries and it was up on a year over year basis. So we are seeing good signs in terms of the variable commission structure the drivers.
Speaker Change: Yes, they are being more efficient and also on the road, which is important to us.
Speaker Change: We're keeping our commission is very stable.
Speaker Change: And that we are seeing improvements across a lot of the drivers metrics across whether it's not even the Singapore market, but just across all the different countries also from improved online hours at fulfillment rate.
Speaker Change: Keeps on getting better.
And we are seeing lower waiting times, and we're also seeing sewage pricing coming down which is benefiting the consumer also at the same time.
Speaker Change: Thank you would you rule out this progressively in other countries.
Speaker Change: Similar structure, where they will commission structure.
Speaker Change: But I think we're taking a very cautious approach obviously the commission structure is very.
Speaker Change: Sensitive to drivers so where we are rolling it out we are rolling out in a in a very cautious and careful way, we're working with drivers we drove a community where.
Speaker Change: Waking working also with regulators also at the same time so.
Piyush: We will take that approach, but again, we're doing it very cautiously piyush.
Speaker Change #100: Got it thank you.
Speaker Change #101: Thanks next question please.
Speaker Change #102: Your next question comes from the line of John <unk> from Barclays. Your line is open.
John: Thank you very much for taking my questions.
John: Two questions. Please first is about the.
John: Yeah.
The delivery margins.
Speaker Change #104: I think Peter you May have said that.
Speaker Change #105: If you use it all the way to do the calculation. It was three 3% for the quarter I think it's a bit.
Speaker Change #104: Lower.
From then last couple of quarters I was just wondering.
Speaker Change #106: Was there anything you want to call out in Q1.
Speaker Change #107: <unk> might have caused that.
Speaker Change #108: At the time and with respect to the outlook I think you have said for the rest of the year.
Speaker Change #109: The delivery margin stays stable from the Q1 level, but afterwards, our long term target is.
Speaker Change #110: 240 basis points higher so I was wondering why or why not we start to see some improvement. This year, we'll have to wait for next year to see any kind of improvement. So thats. My first long winded question second question is about the Fintech business that was hoping.
Speaker Change #110: Since it's a new business for all of us to understand.
Speaker Change #111: Unpack the revenue what are some of the major revenue stream the components on the revenue line.
Speaker Change #111: What's the associated costs for those individuals.
Speaker Change #111: Individuals streams. Thank you.
John: John Let me take the first one on deliveries margin and then I'll get Alex.
Speaker Change #112: Seems to be tagging Eni today Alex.
Alex: So on deliveries margin the first quarter, yes from a margin perspective.
Speaker Change #113: Was lower on a Q on Q.
Alex: That's also expected because if you look at our especially our advertising business. We are now embedded in our delivery segment is usually a softer quarter overall, so it's not a surprise to us it season seasonality.
Alex: And your other question regarding getting to the 4% plus or is look we are as keen as you are to get there.
Alex: And the way we think about it is for the rest of this year is we have a number of product that we want to rollout as part of deliveries we are continuing to push on affordability.
Alex: And we're seeing good momentum there in terms of our affordability. We've also got the other end of the spectrum, where we have priority delivery Sabre is now about a quarter of our <unk> today.
Alex: And then also on the Sabre on the priority side is still in the high single digits. So we still have a long way on that front. So we also have group orders for example, also.
Alex: Trailing in the business so there's opportunities for us.
Alex: In going to market and getting adoption for those new set of products out there.
Alex: And where we see opportunities to improve margin, we will but also at the same time, we are seeing good momentum deliveries with grocery also in and we want to keep up with we are committed to the 4% plus long term wise, but for the rest of this year, we said deliveries margin fairly stable.
Speaker Change #114: Alex Thanks, Peter.
Alex: Yeah.
Speaker Change #115: The revenue stream picture for financial services is surprisingly simple.
Alex: We've got our payments business, which is more cost effective than going outside so we have a cost advantage. There I think of that more of a utility business. We get good operating leverage as we scale helps us manage our cost of funds down at.
Alex: But eliminating cash off the off the network, which allows us to grow the marketplace.
Alex: We make a small spread on deposits in the banks.
Alex: But the big revenue driver is lending. So you can see already that is working very well for grabs Finn base.
Alex: Based on an advantage we have on data in credit underwriting and frankly, an advantage we have on collections and.
Alex: User acquisition cost that's a business that we are confident that we can scale profitably. In fact, if you look at <unk>. This quarter is already profitable on an adjusted EBITDA basis.
Alex: So a lot of the costs this quarter.
Alex: With that reduced loss.
Alex: Things like the bank launches, which I mentioned earlier.
Alex: As we allow the lending to rollout for <unk> bank in Malaysia.
Alex: Once that flex loan product is launched there.
Alex: And then as the bank in Indonesia starts to starts to grow and starts to lend then you will see that big driver of lending income coming through consistently.
Alex: Both for not just Singapore Bank, but also the Malaysian bank.
Alex: And the Indonesian Bank meantime, grabbed <unk> still has a lot of upside too weak.
Alex: The lending models are getting better and better that allows us to target different segments of users on our on our marketplace.
Alex: I'd say, the Dax penetration to drive the penetration is the highest but still lots of upside on the merchant lending.
Alex: And further upside on consumer lending too for grab fin so very simple business model Big driver is.
Lending income and Thats performing very nicely.
Speaker Change #116: It could have a quick follow up I know youll, probably notice will be appears in our region have call. It a 30% plus minus EBITDA margins for the asset type or is that something you're seeing a longer term target is reasonable for you guys as well.
Speaker Change #117: Because the driver for your Fintech business.
Speaker Change #117: The business is still very early still maturing as I mentioned to one of the earlier questions.
Speaker Change #117: We want to make sure that we mature our lending models and a way in which there'll be robust through any any downturn through the whole cycle.
So we're not going to be giving any guidance on those specific margin level. At this time I think as the business gets larger.
Speaker Change #118: Peter myself, Anthony will start to disclose more.
Details about the different the different.
Speaker Change #119: <unk> the balance sheet, I think thats only right at the moment, because it's such early days.
We're going to defer that.
Speaker Change #120: Thank you okay. Thank you guys.
Speaker Change #121: Your next question comes from the line of Ranjan Sharma from Jpmorgan. Your line is open.
Ranjan Sharma: Hi, good morning.
Ranjan Sharma: Thank you for the opportunity.
Speaker Change #123: Two questions from me one is Michael good question.
Speaker Change #124: Essentially with your question.
Speaker Change #125: Uh huh.
Speaker Change #125: Firstly on the corporate cost side.
Speaker Change #126: I mean, a couple of months back we talked about costs going up now you have seen a decline, but you can expect them to be stable for the full year.
Speaker Change #127: Thanks again.
Speaker Change #128: Walk us through like what are some of the new initiatives that you've got which brings down the cost compared to where we started the year.
Speaker Change #129: The second is on the guidance.
Speaker Change #130: The company historically.
Speaker Change #130: The.
Speaker Change #131: Historically, you guided conservatively.
Speaker Change #132: And then beat and raise guidance.
Speaker Change #133: Do we.
Speaker Change #133: Is grabbing some conservatism on the guidance again.
Speaker Change #134: And what could be the source of that thank you.
Speaker Change #135: I'll give you a break and I'll take both of them.
Speaker Change #134: Yeah.
Speaker Change #136: I think from a from a corporate cost perspective, it's been a lot of initiatives in the business. Throughout this is not just one department to department just permeating throughout the business and I have to crude I have to give kudos to the leaders in our businesses and also all the various teams throughout grab here.
Speaker Change #136: Because he's been a fantastic effort in terms of how they've been managing that cost business. So a few things I would give you. Some examples here, we're starting to use gen II in the business.
Speaker Change #136: Janet is here to stay we're starting to acquire we're starting to use it and we're starting to experiment with it and we're seeing some fruits and those gen AI, we reducing becoming more efficient as a business.
Speaker Change #136: How we do.
Speaker Change #136: <unk> way the way things are being done.
Speaker Change #136: Being changed and we are seeing tremendous efficiencies in those in those areas still have a long way to go but it's hitting in the right direction.
Speaker Change #136: Secondly, also we are seeing improvements in just how managing operating leverage when it comes to variable costs.
Speaker Change #136: As our volume continues to grow we're also managing that in terms of marketing costs in terms of also things like cloud computing, which is a fairly heavy cost for us and those are coming down also cloud cost was down 15% for us on a year on year basis and there is a couple of examples just want to highlight that just the continuing.
Speaker Change #137: Momentum that we're seeing.
Speaker Change #137: In managing the business. So we're not going to stop here, there's still a lot of work to be done in this area. We are going to continue to maintain this.
Speaker Change #138: Your second question about was about my.
Speaker Change #138: My conservatism around guidance.
Look I think we're very confident on the revised guidance that we've given out here. It is a meaningful increase from the last guidance that we put out out there.
Speaker Change #138: And this is a big number out there we feel confident the management team is backing this.
We've got the teams working on these to make sure we achieve this lawsuit.
Speaker Change #138: Love to exceed it but at this stage, we are confident to get to the $2 $50 million to $270 million and we'll continue to update as we make progress and update all the investors how we how are we tracking things.
Speaker Change #139: If I just might jump in very quickly.
Speaker Change #140: Indeed Peter's right.
Speaker Change #139: Jenny.
Jenny: Has been critical in augmenting our ability to solve problems not just.
Jenny: For our users and partners, but also improving and driving efficiencies among all our teammates.
Is one of the key reasons, we see.
Jenny: Why we are confident about how we can continuously optimize cost levels in our regional corporate costs.
Jenny: Give you just some quick examples.
Jenny: One is we talked about ground maps before.
Jenny: And we are seeing for self sufficiency on grab maps and about 90% of our driver partners adopting <unk> NAV and that has led to improved trips, but transit our us improve fulfillment rates improve.
Jenny: Improve incomes for our driver partners all at the same time moving the efficiency frontier that are north East zone.
Jenny: In our example, we talked about just now is a small language.
Jenny: Model translation feature that has reduced transportation processing times from 100 days with a vendor outsource to just five days in house.
Jenny: For Onboarding any new language regionally.
Jenny: The principles will take is we're not just going to chase technology. We're here to solve real problems, what real problem or are we solving for.
Jenny: And how might we use the latest two.
Speaker Change #142: Two very innovative flea solve these problems. So we are laser focused as what Peter said scaled our platform grow topline leverage tech led initiatives, both product engineering and drive operational efficiencies to drive profitable growth.
Speaker Change #143: Thank you there will be no questions over the audio back to your presenters.
Speaker Change #144: Thank you very much everyone for spending the time with us.
Speaker Change #145: Please feel free to reach out to Investor Relations team. If you have questions and I'll talk to you guys. All next quarter. Thanks Bye bye.
Speaker Change #146: This concludes scripts first quarter 2024 earnings conference call. Thank you for your participation you may now disconnect.