Checking Grab's financial pulse

Opening Bell 🔔 is Tech in Asia’s free newsletter that brings you the biggest news and latest trends around Asia’s publicly listed tech companies. [Read from your browser]( Opening Bell 🔔 Welcome to the Opening Bell! Delivered every Monday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and latest trends on Asia’s publicly listed tech companies. If you’re not a subscriber, get access by [registering here](. --------------------------------------------------------------- Written by Shravanth Vijayakumar Journalist Hello {NAME} We’re in the thick of earnings season - a time when quarterly financial reports begin to stream in and investors re-evaluate company valuations based on the latest financials. Whiplash patterns in a firm’s stock price charts are common during this period, given the host of variables that are often factored into valuations. So, at first glance, it appears that the market was far from satisfied with Grab’s (GRAB, NDAQ) [fourth-quarter earnings](. Shares of Southeast Asia's biggest ride-hailing and food delivery firm fell over 8% as fears of a slower recovery were amplified after it projected a return to pre-pandemic levels in its ride-sharing business only by the end of the year. However, a [closer look]( at the numbers will reveal a number of positives for Singapore’s tech darling. For starters, Grab more than quadrupled its Q4 revenue year on year and forecasts up to a 60% rise in annual revenue this year. Perhaps more importantly, the tech titan pulled its profitability timeline forward, now expecting to hit [adjusted EBITDA]( breakeven by Q4 2023 instead of the second half of next year, as previously predicted. Rival GoTo Group (GOTO, IDX) [set]( a similar target earlier this month. This week’s featured piece offers a visual take on Grab’s financial health, following its latest results. The charts provide a unique insight into not only the firm’s current state of affairs but also lay out how it rose to become the Southeast Asian powerhouse it is today. You can also view [this comprehensive visual comparison]( between each of the six major publicly listed Southeast Asian tech firms that will no doubt come in handy for folks looking to park their investments in the region. -- Shravanth  ---------------------------------------------------------------  THE BIG STORY [Grab’s financial health in 9 charts]( We analyze the financial figures reported by the Southeast Asian tech titan. See also: [Grab’s latest lineup of top executives]( ---------------------------------------------------------------  3 TRENDS TO KEEP EYE ON Hot stocks, earnings reports, restructuring, pressure from activist investors, and more. 1️⃣ Where will China's tech giants turn for growth?: The slowdown in the world’s second largest economy has weighed heavily on the country’s big tech firms. Recent quarterly earnings reports suggest that perhaps the worst is over, with both Alibaba (BABA, NDAQ) and Baidu (BIDU, NDAQ) posting massive profits. However there’s a lot left to be desired in terms of growth. Alibaba [posted]( a mammoth US$6.6 billion in net income in the December quarter, but the ecommerce giant's revenue only grew modestly at 2%. Similarly, Baidu [nearly tripled]( its Q4 net income, but the search engine’s net revenue stayed roughly flat. Making matters worse for rival ecommerce players, JD.com (JD, NDAQ) and Pinduoduo (PDD, NDAQ), is an [impending price war](. To help drive down listed prices, JD.com has reportedly earmarked US$1.5 billion in subsidies for its self-operated shops and those set up by third parties. Unsurprisingly, some firms are starting to look offshore to reignite growth. Take China’s Meituan (3690, HKG), which has [started hiring]( in Hong Kong as growth begins to plateau in domestic food delivery. 2️⃣ IPOs in the works: Shein, the ultra-fast fashion behemoth, is leaving [no stone unturned]( ahead of a possible IPO this year. The Chinese firm is not only targeting US$60 billion revenue but also US$7.5 billion in profit by 2025 as part of its efforts to reassure investors in the public market. But it isn’t all smooth sailing for Shein. The company, which reached a US$100 billion valuation last year, is now having to mark itself down to around US$65 billion to US$70 billion [to finalize]( a new funding round. Over in Indonesia, local logistics unicorn J&T Express is reportedly [eyeing a public listing]( in Hong Kong in the second half of this year. In what would be its second stab at an IPO, the firm is looking to raise at least US$1 billion at a valuation of US$20 billion. Read more: [What makes a perfect IPO?]( 3️⃣ Digital payments race heats up in India: Several friends of mine who live outside India are awestruck at the financial infrastructure now available in the country. One friend from Qatar was fascinated by the rather simple QR code payment I had made at a local mom and pop shop, while the others from Germany were dumbfounded by the ease and convenience of the digital payment systems. Perhaps I take this kind of digital payment infrastructure for granted, though it has effectively eliminated the need to carry a wallet. However, investors aren’t. For starters, Walmart-owned (WMT, NYSE) PhonePe has bagged US$450 million within six weeks after the fintech unicorn [secured]( US$100 million in funding at a pre-money valuation of US$12 billion this month. The retail giant is not the only US-based company looking to grab a slice of India’s payment sector, with both Google (GOOGL, NDAQ) and Amazon (AMZN, NDAQ) making significant forays after [receiving]( approval from India’s central bank to operate as online payment aggregators in the country. Lastly, despite a difficult start to life as a public firm for India’s payment pioneer, Paytm (PAYT, NSE) appears to have turned the page after [posting]( better-than-expected results and hitting the milestone of operational profitability three quarters ahead of its forecasts. 2 EYE-POPPING NUMBERS Tech in Asia scours the internet to bring you head-turning numbers from the world of business. - [25,000]( That is the number of electric vehicles ride-hailing giant Uber (UBER, NYSE) will onboard in India after signing a deal with manufacturer Tata Motors (TAMO, NSE). Starting this month, the India-based carmaker will deliver Xpres-T models to Uber’s fleet partners. The US firm has committed to become a fully zero-emission platform by 2040. - [2]( That is the number of offices Twitter (TWTR, NYSE) has closed in India this month. The firm shut its New Delhi and Mumbai offices in India and asked staff to work from home, leaving the microblogging platform with only one office in Bengaluru. CNBC reported that only three employees remain in the company’s India team. THE ONE YOU DIDN'T SEE COMING We spotlight the story that had everyone talking and social media buzzing during the past week. Facebook does a Twitter Facebook parent firm Meta (META, NDAQ) copying features from its social media rivals is nothing new. So you probably saw this one coming. In 2013, the platform attempted to buy Snapchat (SNAP, NYSE) for US$3 billion, but the deal didn’t materialize. Instead, the Mark Zuckerberg-led company introduced Snapchat’s supremely popular “story” feature on Instagram, and the rest is history. Now, Facebook appears to have ripped a page off Twitter Blue, the microblogging site’s subscription service. The social media titan will be [rolling out]( Meta Verified, a paid service that offers users increased security and authenticity features as well as a – ahem – blue checkmark. That’s it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter by going to our preference center at the bottom of this email. Happy investing and see you next week! Disclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice. [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? 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