Earnings Report /

Grab Holdings: Revenue surge is an opportunity to Grab the stock

  • Grab reported US$228mn revenue in Q1, which was in excess of market expectations and our forecast

  • We raise our FY 22-23 revenue expectations as the ride-hailing business takes off

  • Grab has been unjustly punished in the Tech collapse. We reiterate our Buy recommendation and our US$6.10 target price

Grab Holdings: Revenue surge is an opportunity to Grab the stock
Nirgunan Tiruchelvam
Nirgunan Tiruchelvam

Head of Consumers Equity Research

Tellimer Research
19 May 2022
Published by

Grab Holdings has reported an outstanding set of Q1 22 results, with revenue of US$228mn exceeding market expectations by 61%.

1Q22 results as a % of our forecast and consensus

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:

Grab: FCFF valuation

Our SOTP-based valuation is as follows:

Grab: SOTP

We will revert with detailed insights after the results call.