Bullish option flow was detected in AGC stock over the last week.
AGC Stock Bullish Option Flow
Make sure to review this lesson on option flow so that you understand the image above.
Grab Reports Third Quarter 2021 Results
On November 11, 2021, Grab Holdings Inc., Southeast Asia’s leading superapp, today announced financial results for the third quarter ended September 30, 2021.
- Gross Merchandise Value (“GMV”) reached a new quarterly record of $4.0 billion, up 32% year-over-year (“YoY”) in spite of a challenging operating environment
- Deliveries GMV grew 63% YoY; Grab expects a strong recovery in mobility heading into Q4 2021
- Average spend per user1 on Grab’s platform grew 43% YoY to hit a record high
- Revenue was $157 million, down 9% YoY, as a result of a decline in mobility due to the severe lockdowns in Vietnam
“Despite severe lockdowns in Vietnam and heightened restrictions across the region in the third quarter due to COVID-19, we executed well on our superapp strategy and delivered strong growth,” said Anthony Tan, Group CEO and co-founder of Grab. “We achieved this even as we remained steadfast in our double bottom line commitment, including the launch of a new partnership with Mastercard to bring digital upskilling to millions of informal workers and small businesses in Southeast Asia. With recovery in sight, and the gradual reopening of economies providing tailwinds to our business, we are doubling down on investments that will help us capture a greater share of the opportunities in front of us and open up new addressable markets for Grab, such as groceries.”
Peter Oey, Chief Financial Officer of Grab, commented, “We achieved another record quarter in GMV & TPV, and saw the average spend per user on our platform increase by 43% year-over-year. This is testament to the resilience of the superapp business model, even in the face of what has been the most challenging quarter for us this year due to COVID-19. As previously guided, mobility and food delivery services were suspended in Vietnam for most of Q3, and six of our core countries in which we operate experienced tighter movement controls. As we head into the fourth quarter we are already seeing mobility demand returning strongly in certain countries. Group Mobility GMV for the first four weeks of the fourth quarter2 was 26% higher compared to the first four weeks of the third quarter3. As we experience continued growth across our businesses we will remain disciplined in our operational execution and find ways to reduce our cost to serve, while accelerating the expansion of our ecosystem.”
Third Quarter 2021 Financial and Operational Highlights
- GMV grew 32% YoY to reach $4.0 billion, a new record for Grab. Deliveries GMV grew 63% YoY to reach $2.3 billion, which offset a 30% YoY decline in mobility GMV due to lockdowns and movement restrictions in many of our markets caused by COVID-19 and the Delta variant.
- Gross Billings grew 41% YoY to $616 million, also a new all-time high.
- Revenue was $157 million, down 9% YoY, as a result of the expected decline in mobility due to the severe lockdowns in Vietnam. Grab’s reported revenue is net of consumer, merchant and driver-partner incentives.
- Adjusted EBITDA of $(212) million was down by $85 million YoY and up by $2 million QoQ. Adjusted EBITDA margins at (5.3%) of GMV remained consistent with the previous quarter at (5.5%). Adjusted EBITDA in Q3 2021 was negatively impacted by a drop in mobility, which has been segment Adjusted EBITDA positive since Q4 2019, as well as an increase in regional corporate costs as Grab continues to invest in product development and technology investments for the future.
- Loss for the period grew by $366 million to $(988) million. The YoY increase in losses during the third quarter was driven primarily by non-cash expenses. Grab’s Q3 2021 loss includes $748 million in non-cash items. This primarily consists of interest accrued on Grab’s convertible redeemable preference shares, stock based compensation and fair value changes on investments. A significant proportion of such non-cash expenses is expected to cease after the business combination.
- Monthly Transacting Users (“MTUs”) declined by 8% YoY, as a result of total lockdowns across Vietnam between July and September 2021 which saw both food delivery and ride-hailing services suspended. Normalized for Vietnam4, Grab estimates that MTUs would have grown to 24.8 million.
- Average spend per user, defined as GMV per MTU, increased by 43% YoY.
- As of September 30, 2021, Grab had cash liquidity of $5.2 billion, an increase of $1.5 billion from $3.7 billion as of December 31, 2020.
- GMV for deliveries grew 63% YoY to hit an all-time high of $2.3 billion.
- Gross Billings for deliveries grew 74% YoY to $422 million.
- Revenue for deliveries grew 58% YoY to $49 million.
- Deliveries Segment Adjusted EBITDA of $(22) million improved by $1 million YoY. Deliveries Segment Adjusted EBITDA margin was at (0.9)% as a percentage of deliveries GMV, an improvement compared to (1.6)% in Q3 2020.
- GrabMart continues to show strong traction, with GMV growing approximately 380% YoY and 78% compared to Q2 2021.
- Grab continues to expand its role as an e-commerce enabler, particularly in deliveries. In November, Grab announced a partnership with Lazada to enable Lazada sellers to provide same-day delivery services for their consumers in Singapore via GrabExpress. Grab has a similar partnership with Lazada in Indonesia and Malaysia.
- Grab also announced in November the addition of new major retail chains to GrabMart as it continues to scale up grocery delivery across Southeast Asia. New partners joining GrabMart include convenience store chain Indomaret in Indonesia; hypermarket chain Big C in Thailand; hypermarket chain Lotus’s Malaysia (formerly known as Tesco Malaysia); S&R supermarket in the Philippines best known for their attractive members-only discounts; and Mega Market in Vietnam, a leading wholesaler and distributor of grocery products.
- GMV for mobility declined 30% YoY to $529 million, primarily due to increased movement restrictions across the region as a result of COVID-19.
- Gross Billings for mobility declined 22% YoY to $126 million.
- Mobility Revenue was $88 million, down 26% YoY.
- Mobility Segment Adjusted EBITDA was $64 million, a 26% decrease compared to Q3 2020. Segment Adjusted EBITDA margin for mobility reached 12.0% of GMV, up from 11.4% in Q3 2020.
With vaccination rates improving and countries shifting to a new long-term strategy to treat COVID-19 as endemic, Grab is seeing rapid recovery in ride-hailing demand in early Q4. Mobility GMV for the first four weeks of the fourth quarter6, compared to the first four weeks of the third quarter7, was 26% higher at the group level, 109% higher in Indonesia, and 106% higher in Malaysia.
When Vietnam started to ease restrictions, Grab was the first platform to resume offering mobility services within government restrictions in Ho Chi Minh City and Hanoi.
- Grab’s financial services segment achieved another record quarter for Total Payments Volume (Pre-InterCo)8 of $3.1 billion, a 44% increase from Q3 2020.
- Gross Billings for financial services grew 17% YoY to $28 million.
- Financial services Revenue grew by 11% YoY to $14 million.
- Financial services Segment Adjusted EBITDA for Q3 2021 was $(76) million, compared to $(58) million in Q3 2020. Financial services Segment Adjusted EBITDA margin was at (2.4)% of TPV, an improvement from (2.7)% in Q3 2020.
- Compared to the year prior, the percentage of mobility and deliveries GMV that were transacted via Grab Financial Group products such as GrabPay increased from 58.5% to 69.9%.
- Grab has increased its ownership stake in OVO9. OVO is a leading digital wallet in Indonesia10 and the most used for both online and offline payments11. It operates on an open ecosystem platform, with a wide range of acceptance points. Grab believes closer collaboration with OVO will create a stronger financial services platform with an open ecosystem, allowing both companies to expand the suite of financial services they can offer to ecosystem partners as well as increase speed to market.
Enterprise and New Initiatives
- GMV for enterprise and new initiatives grew 351% YoY to $41 million.
- Gross Billings for enterprise and new initiatives grew 414% YoY to $39 million.
- Revenue for the segment declined by 37% YoY to $7 million.
- Enterprise and new initiatives Segment Adjusted EBITDA was $1 million, down $4 million year on year due to continued reinvestments into growing the merchant base.
- Segment Adjusted EBITDA margin for enterprise and new initiatives was 2.1% of GMV, down from 60.3% in Q3 2020.
- As of September 30, 2021, Grab had cash liquidity (including time deposits, marketable securities and restricted cash) of $5.2 billion, an increase of $1.5 billion from $3.7 billion as of December 31, 2020. Total outstanding debt as of September 30, 2021 was $2.2 billion, a $2.0 billion increase from $212 million as of December 31, 2020, primarily due to the closing of the $2.0 billion Term Loan B Facility in January 2021.
Public listing process update
Grab’s planned business combination with Altimeter Growth Corp. (Nasdaq: AGC), a special purpose acquisition company, continues to progress and is expected to close in the fourth quarter of 2021.
Grab filed an initial registration statement on Form F-4 with the U.S. SEC on 2nd August, and amended registration statements on 13th September and 18th October. Grab remains in active communication with the SEC and expects to file another amended F-4 in the near future. A further update will be provided to the market when the Form F-4 is declared effective.
Crypto payments provider TripleA partners with Grab, Tech In Asia reports
On November 2, 2021, Crypto payments provider TripleA has partnered with Grab to allow TransCrypt users in Singapore to invest in digital tokens through GrabPay wallet, reported Tech In Asia’s Samreen Ahmad. Grab Holdings CEO Anthony Tan previously said in June that he was confident the merger of the ride-hailing and food-delivery giant and U.S. blank-check company Altimeter Growth Corporation will be completed by year-end, Bloomberg has reported. Source: https://www.techinasia.com/triplea-partners-grab-enable-crypto-trading
VIDEO AGC Grab Altimeter Stock Earnings Run!
Chris Norlund says that a squeeze could happen in AGC stock at any time.
AGC Stock Technical Analysis
Large players volume surged higher and we also have a recent Pocket Pivot signal. The long and short term trends are both positive. This is looking good! Although AGC has an excellent technical rating, it does not offer a high quality setup at the moment. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when AGC stock is a good entry.