Grab Holdings has reported an outstanding set of Q1 22 results, with revenue of US$228mn exceeding market expectations by 61%.
We are very positive about Grab as a marquee EM tech play and it is well positioned to emerge as ASEAN’s premier super app. The take rate (the fee charged by the platform on a transaction) has improved yoy in all three segments – delivery, mobility and financial services.
Management has stressed the following:
It expects FY gross merchandise value (GMV) to be 30-35% higher yoy; and
It expects FY revenue to rise from US$1.2bn to US$1.3bn.
We value Grab using the DCF methodology, as follows:
Our SOTP-based valuation is as follows:
We will revert with detailed insights after the results call.