Grab loses its grip with $1.1b loss for Q4

Around $3.6b total loss was recorded for FY2021.

Grab recorded a loss of $3.6b for the financial year 2021. This was mainly due to a $1.6b in non-cash interest expenses related to the group’s convertible redeemable preference shares that stopped due to Grab’s public listing.

Also a part of this loss was $353m in one-time public listing related expenses.  

Meanwhile, the fourth quarter (Q4) recorded at $1.1b, which included $311m non-cash interest expenses and $328m related to one-time public listing related expenses. $290m of the recorded value is non-cash. 

Similarly, earnings before interest, taxes, depreciation, and amortization for Q4 2021 saw a similar dip, as the metric was down by $203m year-on-year (YoY). Factors for this performance include the increased investments in the aforementioned incentives, and investments in tech and financial services. 

The decrease was also felt in average monthly transacting users (MTU) as it slipped by 2% YoY due to lockdowns in the third quarter. Despite this, however, Grab ended the year with 27,700,000 MTUs, higher than any month in 2021.

Deliveries and financial services offered by the group also reflected this increase, as both reported a 56% and 37% YoY growth, respectively. These metrics offset the 14% YoY drop in mobility gross merchandise value, which was due to the emergence of new variants. 

Overall, cash liquidity at the end of Q4 was at $9b, while net cash liquidity was at $6.8b. 

“2021 was our strongest year yet, even as we faced tougher conditions with the Delta and Omicron variants. We achieved outsized growth in both GMV and Revenues while continuing to improve our Adjusted EBITDA margins year over year, demonstrating the resilience and growing relevance of the superapp,” explained Anthony Tan, Group CEO, Co-founder, Grab.