Grab Holdings Limited — FY2022 Form 20-F
Reporting period: Fiscal year ended December 31, 2022, compared with FY2021 and FY2020. This is an annual report, not a standalone Q4 filing. Financial statements are prepared under IFRS as issued by the IASB. Amounts are in U.S. dollars unless stated otherwise.
Business context
Grab operates deliveries, mobility, financial services, and enterprise offerings across eight Southeast Asian countries. FY2022 included the acquisition of a majority economic interest in Malaysian supermarket operator Jaya Grocer, completed January 31, 2022.
Key financial and operating metrics
| Metric | FY2022 | FY2021 | Change / context |
|---|---|---|---|
| Revenue | $1.433 billion | $675 million | Up 112% |
| Cost of revenue | $1.356 billion | $1.070 billion | Up 27% |
| Gross profit (calculated) | $77 million | $(395) million | Gross margin about 5.4%, versus about (58.5)% |
| Operating loss | $(1.373) billion | $(1.555) billion | Loss narrowed |
| Net loss | $(1.740) billion | $(3.555) billion | Loss narrowed; FY2021 included substantial preference-share interest and listing expense |
| Adjusted EBITDA (non-IFRS) | $(793) million | $(842) million | Improved by $49 million |
| Cash used in operating activities | $(798) million | $(954) million | Cash outflow narrowed |
| Cash and cash equivalents | $1.952 billion | $4.991 billion | Down $3.039 billion |
| Loans and borrowings | $1.179 billion | $2.052 billion | Lower; excludes lease liabilities |
| Total equity | $6.657 billion | $8.019 billion | Down $1.362 billion |
| GMV | $19.937 billion | $16.061 billion | Up 24% |
| Monthly transacting users | 32.7 million | 28.1 million | Up 16%; includes OVO users |
Revenue by segment was $663 million for deliveries, $639 million for mobility, $71 million for financial services, and $60 million for enterprise and new initiatives. Segment Adjusted EBITDA was $(35) million, $494 million, $(415) million, and $21 million, respectively. These are non-IFRS measures and exclude regional corporate costs.
Total partner and consumer incentives were $1.970 billion, up from $1.782 billion in FY2021. Total incentives were 9.9% of GMV, down from 11.1%. The company reported $5.696 billion of deposits with banks and financial institutions plus cash and cash equivalents available at year-end; this is broader than the $1.952 billion cash-and-cash-equivalents line item.
Material changes and unusual items
- Revenue growth reflected higher GMV, reduced incentives as a share of GMV, and $334 million of revenue from Jaya Grocer.
- Mobility revenue rose 40% as travel and commuting recovered; mobility GMV increased 47%. Deliveries GMV grew 15%, with food-delivery demand moderated by the return of dine-in activity.
- FY2022 financial results included a $294 million net fair-value loss on financial assets and liabilities. FY2021 included $1.701 billion of finance costs and $353 million of listing-related expenses, contributing to its larger net loss.
- For certain delivery offerings in one market, Grab changed from agent to principal accounting in Q4 2022. Management says the change increased revenue by $68 million; the audited note identifies $52 million of deliveries revenue under the modified arrangements and $68 million of payments to delivery providers recorded in cost of revenue. The differing revenue figures warrant verification.
- Cash used in investing activities was $1.062 billion, including $683 million for other investments and $266 million for acquisitions of subsidiaries with non-controlling interests and loan receivables. Financing activities used $1.122 billion, including $1.019 billion of bank-loan repayments.
Outlook, risks and contingencies
The filing provides no specific numerical revenue, profitability, or cash-flow guidance. Management said available cash, cash equivalents, and credit facilities were expected to fund ordinary-course working capital and capital expenditures for at least 12 months from the filing date. Its stated priorities include improving efficiency and monetization, managing incentives and costs, investing in technology, and expanding financial and enterprise services. In February 2023, Grab prepaid $600 million of its term loan; the term loan had $1.061 billion outstanding at December 31, 2022.
- Grab has incurred annual net losses since inception and expects continued investment. Achieving profitability depends in part on growing revenue while managing incentives and operating expenses.
- Risks include intense competition, evolving Southeast Asian regulation, driver classification and worker protections, foreign-ownership structures, cybersecurity and service disruptions, credit losses, and currency and interest-rate movements.
- The company disclosed an internal investigation into potential anti-corruption violations in one country and a voluntary self-report to the U.S. Department of Justice. The filing says the outcome is uncertain.
- Legal matters include a proposed Malaysian competition penalty of MYR 86.8 million, a disputed Philippines tax assessment of approximately PHP 1.4 billion, and a putative U.S. securities class action for which a motion to dismiss was pending. Grab says it contests the claims; outcomes and potential impacts are uncertain.
- Grab believed it was a PFIC for U.S. federal tax purposes in 2022, which may have adverse tax consequences for U.S. holders. No dividends were declared, and the company does not expect to pay dividends in the foreseeable future.
- Prior material weaknesses in internal controls were reported as remediated at December 31, 2022, and the auditor expressed an unqualified opinion on control effectiveness. However, Jaya Grocer—23% of FY2022 revenue—was excluded from management’s and the auditor’s internal-control assessment.
Important facts for investors to verify
- Reconcile the $68 million revenue increase cited for the Q4 agent-to-principal accounting change with the audited note’s $52 million revenue figure and $68 million provider cost.
- Review cash, short-term deposits and other investments separately, including liquidity, restrictions, maturity, and valuation; distinguish reported cash of $1.952 billion from the broader $5.696 billion liquidity figure.
- Track operating cash burn, incentive levels, and progress toward reducing the substantial financial-services segment loss.
- Assess the contribution and integration of Jaya Grocer, including its share of revenue and exclusion from the FY2022 internal-control assessment.
- Monitor term-loan repayments, interest-rate exposure, potential share dilution, and the status and possible financial impact of significant legal and regulatory matters.