Indonesia’s biggest tech company GoTo reported a 53% drop in net losses during the nine months ended Sept 30, 2024, according to its filings with the Indonesia Stock Exchange (IDX). Moreover, its losses in Q3 2024 narrowed 29% to 1.7 trillion rupiah compared with 2.4 trillion rupiah in Q3 2023.
GoTo’s losses for the Jan-Sept 2024 period stood at 4.5 trillion rupiah, compared with 9.6 trillion rupiah in the year-ago period as total costs and expenses dropped significantly by 28% to 13.7 trillion rupiah from 19.3 trillion rupiah during the period. Net revenue, meanwhile, increased nearly 11% to 11.7 trillion rupiah in the nine-month period.
“Our strategy works because each part of our ecosystem adds value to the others — a model that is increasingly bearing fruit as we aggressively pursue new users and enhance profitability across our rapidly expanding business,” Group CEO Patrick Walujo said in a statement on Wednesday.
“Ultimately, we want users to enjoy the benefits of everything our payments and on-demand products can offer, and for this to act as a funnel through which the right users find and benefit from our responsible lending products. Our progress is such that we now expect our financial technology segment to reach positive adjusted EBITDA next quarter, one year ahead of schedule,” he added more.
*All group-related numbers are pro forma unless otherwise stated. Pro forma numbers assume Tokopedia and its related delivery and fulfillment business under GoTo Logistics were deconsolidated as of January 1, 2023.
GoTo’s group gross transaction value (GTV) declined 9% to 137.4 trillion rupiah in Q3 2024 from 151.5 trillion rupiah in Q3 2023. However, its group core GTV — which excludes merchant payment gateway — grew 5% YoY to 72 trillion rupiah.
Gross revenue during the latest quarter dropped by 21% to 4.7 trillion rupiah, while net revenue saw an increase of 8% to 3.9 trillion rupiah.
The group adjusted EBITDA turned positive in Q3 2024 at 137 million rupiah, against a loss of 942 million rupiah in Q3 2023, bringing the company closer to its 2024 full-year adjusted EBITDA breakeven target.
“Our business is progressing swiftly, particularly the financial technology segment, while we continue to be prudent in terms of cost management. This is clearly reflected in our topline growth and bottomline improvements, both by business segment and at the group level, with the third quarter marking our ninth consecutive quarter of year-on-year adjusted EBITDA improvement,” said GoTo Group CFO Simon Ho.
“Looking ahead, we expect to continue on our growth trajectory over the coming months while booking further cost savings and solidifying improvements in our bottom line. We are squarely on track to reach our target of group adjusted EBITDA breakeven for the full year,” he said.
The company credited the overall improvement in its performance to the growth in its lending business (BNPL), product innovation in premium offerings (GoFood Express), and advertising.
GoTo also reported an income of 191 billion rupiah from the e-commerce service fee from Tokopedia during 9M 2024. The company is now optimistic of achieving the targeted 560 billion rupiah ($37 million) for the full year.
In Q3 2024, the company reported a decrease in recurring cash fixed costs by 3% YoY and reported recurring cash corporate costs by 37% YoY. GoTo maintains a solid cash position and balance sheet, with 21 trillion rupiah ($1.39 billion) in cash and cash equivalents and short-term time deposits as of Sept 30, 2024.
