Grab’s third quarter net loss widens to $ 988 million, revenue down 9%
Singapore-based rideshare and delivery company Grab said Thursday it reported a net loss of $ 988 million in the third quarter of this year, up 59% from a net loss of $ 621 million in the during the same period last year, according to its third quarter earnings report.
The company said its third-quarter losses widened due to non-cash spending.
Grab said $ 748 million of the third-quarter loss was due to non-cash items, mainly comprised of accrued interest on Grab’s redeemable convertible preferred shares, stock-based compensation and changes in the fair value of the investments.
“A significant proportion of this non-cash spending is expected to cease after the business combination,” he said in his statement.
The company posted adjusted EBITDA losses to $ 212 million, up 66% year-on-year, while gross cargo volume increased 32% to just over $ 4 billion.
Grab CFO Peter Oey said in the statement: “As previously reported, mobility and food delivery services have been on hold in Vietnam for most of the third quarter and six of our major countries where we are operons have undergone more stringent movement controls. At the dawn of the fourth quarter, we are already seeing a significant return in demand for mobility in some countries. Group Mobility GMV for the first four weeks of the fourth quarter was 26% higher than the first four weeks of the third quarter.
Grab’s third-quarter revenue fell 9% year-on-year to $ 157 million as mobility restrictions impacted carpools in Vietnam. Carpool revenue fell 26% year-on-year to $ 88 million, while delivery revenue climbed 58% to $ 49 million.
Financial services revenue was well below $ 14 million, but increased 11% year over year, while businesses and new initiatives only made $ 7 million this quarter, down by 37%.
Grab’s cash increased to $ 5.2 billion at the end of September of this year, up $ 1.5 billion from the end of 2020.
Its user count also fell 8%, from 23.9 million in 2020 to 22.1 million this year due to lockdowns, although average spend per user rose 43% to $ 183.
“With the recovery in sight and the gradual reopening of the economies that support our business, we are doubling down on investments that will help us seize more of the opportunities available to us and open up new addressable markets for Grab, such as grocery store, ”said Anthony Tan, co-founder and CEO of the group, in the statement.
Grab, which operates in eight countries and more than 400 cities, has confirmed that its $ 40 billion merger with US special-purpose acquisition company (SPAC) Altimeter Growth Corp is on track to be completed by end of the year.