PT GoTo Gojek Tokopedia Tbk (GOTO), one of Indonesia’s major technology firms, has reported significant reduction in losses by 55 percent for the period of January to September 2024.
The company’s net loss dropped to Rp4.31 trillion (US$275 million), down from Rp9.54 trillion during the same period last year. This improvement has bolstered GOTO’s confidence in reaching its adjusted Earnings before interest, taxes, depreciation, and amortization (EBITDA) breakeven target by the end of the year.
Adjusted EBITDA is a key measure of the company’s operating performance. The Gross Transaction Value (GTV) for GOTO’s core businesses surged by 74 percent year-on-year, reaching Rp72 trillion.
Overall, GTV for the group increased by 37 percent year-on-year to Rp137.4 trillion. Gross revenue grew by 34 percent to Rp4.7 trillion.
GOTO’s adjusted EBITDA turned positive, reaching a new high of Rp137 billion, a sharp turnaround from a loss of Rp559 billion recorded in the same period last year.
This performance was bolstered by a 21 percent year-on-year increase in monthly transacting users across GOTO’s ecosystem.
GOTO CEO Patrick Walujo attributed the strong quarterly results to the optimal performance of its business segments, which align with the company’s accelerated growth strategy.
“With this positive development, we anticipate the fintech segment will achieve positive adjusted EBITDA in the next quarter, one year ahead of previous projections,” Patrick said on Wednesday, October 30, 2024.
GoTo Group CFO Simon Ho also highlighted the company’s rapid growth, particularly in the fintech sector.
“We continue to carefully manage costs, which is evident in our revenue growth and improved bottom line, both at the business unit and group levels,” Simon said.
He pointed out that the third-quarter results represent nine consecutive quarters of adjusted EBITDA improvement on a year-over-year basis.
Simon expressed optimism about GOTO’s future, emphasizing plans to sustain growth in the coming months, continue cost-saving initiatives, and strengthen profitability efforts.
“We are on track to reach the full-year adjusted EBITDA breakeven target for the Group,” Simon said.
As of market close on Wednesday, October 30, 2024, GOTO’s stock price increased by 1.43 percent to Rp71 per share, with a trading volume of 1.91 billion shares, totaling Rp134.14 billion in value. GOTO’s market capitalization currently stands at Rp85.3 trillion.
