Business Growth and Profitability in Southeast Asia's Market

The company is experiencing strong growth driven by new products and increasing demand in Southeast Asia's digital economy.

### Strong Growth and Strategic Focus in Southeast Asia's Digital Economy
* 📈 The company reported a **remarkable 17% increase in revenue**, driven by strong momentum and a **record number of users** on its platform.
* 🚀 The on-demand business, particularly in mobility and delivery, has **accelerated growth** thanks to **new product launches** over the last three quarters.
* 💰 In Q3, the company achieved a **record adjusted EBIT of $90 million**, marking the **11th consecutive quarter of EBIT improvement** while also posting net profit and positive free cash flow.
* 🔄 A **$500 million buyback program** is currently in progress, with about **40% completed**, reflecting a balanced approach to **growth and shareholder returns**.
* 📊 Advertising is emerging as a **significant revenue stream**, currently generating **$200 million annually**, and continues to grow as a **percentage of deliveries**.
* 🌍 With a population of 660 million in Southeast Asia, where **50% are under 30**, the market remains **underpenetrated**, particularly in **mobility and delivery services**.
* ✈ The tourism sector is rebounding, providing a boost to the business, and the digital economy in Southeast Asia is projected to **grow at double-digit rates** over the next five years, indicating **strong future prospects**.
* 📅 The company is committed to **expanding its product offerings and services** to capitalize on these **growth opportunities** in the region.

Boy, it's been a long day for you. We appreciate you coming on the show. And just talk to us a little bit about what's driving the growth. We saw, what, 17% increase in revenue and your forecast to where everyone's exuberant. Sure. We saw a very strong result in Q3, Caroline. And what we're seeing here is strong momentum in our business. We have more users on our platform ever before, and we're seeing growth acceleration on our on-demand business. We saw mobility and delivery business. And a lot of this is really driven by all the new product sets that we've been rolling out over the last three quarters. And those are really coming into action now. And also, our financial services business continues to be the fastest-growing segment today. So, we're firing on all cylinders, strong demand as we exit the year to one of our big, most busiest quarter, which is the

holiday season that we have in front of us. How much are you still having to focus in on the cost-cutting side, the focus on net profit over and above perhaps expanding the market share as it was before revenue growth at all costs. Sure. Yes. And one of the things about Q3, which is always a very strong set of results, was also not on the top but also on the bottom line. So what do we see? We saw a high adjusted EBIT. We posted a highest $90 million quarter adjusted EBIT, which is the 11th consecutive quarter EBIT improvement. We also posted net profit for the business and also free cash flow. Now, with balancing both growth and profitability and what we're doing is making sure also that the top of the funnel, the demand is strong. We're continuing to capture those demand, but at the same time also balancing costs and also making sure that our operating leverage as a business continues to continue to grow.

and continue to sustain. So we're balancing both. And you've seen that in the third quarter of our results where you're seeing the growth in the top, but also the profitability on the bottom. You are balancing investors' desires as well for some returns when it comes to buybacks. For example, JP Morgan analyst saying that with these healthy free cash flows, maybe you could raise prospects for an increase in buyback programs. Would you do that better? We have a buyback program in place today, and it's a $500 million buyback program, which we initiated in the first quarter of this year. We're about 40% all the way through there. So we still have some ways to go, and we're continuing to make good momentum in the buyback program. And what I would say is we need to think about our capital allocation framework as three things. One is making sure that we're investing in the organic growth of our business.

and we're seeing that plan coming into play with all the new products that we've been investing in. Organic growth is a higher yield, and we're going to continue to invest when it comes to more M&A opportunities in organic growth. The bar is extremely high for us. Now, when we do have excess liquidity, we do want to return them to our shareholders. And you've seen a first step in doing that earlier this year by these $500 million buyback program. J.P. Morgan Analyst might have to hold on a little bit longer for any articulation of a raise in the next one. But what about the areas of growth? You talk about it, whether it's the financial products, but also advertising as well coming to your platform. That's something we've seen with Uber, which is a big holder of your stock and backer of the company. How are they going? How much will we see that contribute to revenue going forward?

Sure. Yeah. Advertising actually is another big component of our business, which is growing very fast at the moment. Actually, we are at a clip now where it's doing $200 million on an annualized basis. Now, if you look it out, the penetration of advertising, we continue to grow that as a revenue as a percentage of our deliveries, GMV. We finished the quarter at 1.6%, and we continue to grow that. And we are also up on a year-over-year basis. And one of the things that we're seeing also, it's helping our merchants. We are bringing in more merchants onto our platform also for the advertising services. It's a win-win situation. Also, we bring them traffic back to them, and we see actually the advertising to be still a lot of upside in front of us. So we want to continue to double down on advertising as well as also as we continue to also look to expanding of

grocery delivery. Also, there will also bring another layer of advertising business for us where overall it feels as though, as you said, you're firing on all cylinders. The share price up a lot on the day. But I just want to take a longer-term perspective here because if you do put in a five-year chart of your stock, it is down significantly from previous highs and many have been trying to understand also just the extent of the growth in the market, particularly when you have got some macro headwinds for Southeast Asian consumers. Can you tell us about where next for the next five years to get perhaps the share price back at those all-time highs? Sure. Let me if you step back on Southeast Asia. 660 million people, 50% of those population are under the age of 30. It's a smartphone, First Nations. We operate in eight countries, 700 cities, which is pretty much the whole

of Southeast Asia today. And we still believe that we are still underpenetrated. We grab operates today. So if you look at the mobility business today, you're looking at high single-digit penetration. If you look at the delivery business in the mid-teens. So there's still a long way to go. And if you look at the financial services side of the house, also, 60% of Southeast Asians are underbanked or underserved. So there's a big TAM opportunity for us. And what we're seeing is from a macro perspective and from a demand, it's not slowing down. If anything, actually, it's going through a strong momentum. And one of the components that we're seeing actually is the level of tourism in Southeast Asia. Tourism is a very critical component, a very important sector of the Southeast Asian economy. And we're seeing a continual increase of tourism into the all the

different countries in Southeast Asia, especially coming out of the October days to where we are today. And we're capturing those market where but one of the biggest beneficiary actually of tourism in the right handling as well as in the food delivery side. So and if you look at it from a longer term perspective, and I'll just say to the third party report that came out last week that over the next five years, the digital economy of Southeast Asia, where they mobility delivery will be growing at double digit cargo growth. So we're very bullish on Southeast Asia and we're going to continue to double down on Southeast Asia. And we're going to be doing actually more products and services for our customers.

Grab Double-Downs on Advertising

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The company reported a 17% increase in revenue, driven by strong user growth and acceleration in the on-demand business.

New product sets and a fast-growing financial services segment are contributing to the momentum.

The company is also focusing on cost-cutting and balancing growth with profitability, achieving a record $90 million in adjusted EBIT and posting net profit for the business.

The company is experiencing growth in revenue while also focusing on profitability, as seen in their third-quarter results.

They have a $500 million buyback program in place, with 40% completed, and are prioritizing organic growth and M&A opportunities for capital allocation.

The company is also exploring advertising as a growth area, with potential revenue contributions from their partnership with Uber.

Growing Advertising Revenue and Future Expansion

The company's advertising revenue is rapidly increasing, now at an annualized rate of $200 million and accounting for 1.

This growth is also benefiting merchants on the platform, creating a win-win situation.

The company plans to double down on advertising and expand grocery delivery, aiming to drive further growth in the next five years.

Grab's Growth Potential in Southeast Asia

Grab's business in Southeast Asia shows low penetration in mobility and delivery, with a significant opportunity in financial services for the underbanked population.

The demand for Grab's services is strong, driven by a continual increase in tourism in the region.

The digital economy in Southeast Asia is projected to grow at double-digit rates over the next five years, leading Grab to focus on expanding its products and services for customers.