This weekly newsletter highlights top developments and trends across Southeast Asia’s digital economy and ecosystem, without losing sight of the solid links between the online and offline worlds.
Executive Summary
GoTo’s stock has rebounded, and for a good reason
Moladin – Betting on growth after a strategic pivot
Sea Ltd – Expanding digital banking footprint in SE Asia
GoTo’s stock has rebounded, and for a good reason
Shares of the IDX-listed tech giant GoTo are currently trading 14% above their listing price of 338 rupiah per share, after falling by as much as 40% below the listing price at one point.
There is good reason for the rebound, given that the company’s improving fundamentals are starting to get reflected in its results.
To be sure, the headline loss in Q1 2022 widened by 53% year-on-year to 6.47 trillion rupiah. However, last year’s numbers were somewhat distorted as COVID-induced lockdowns in Indonesia meant that there was less spent on promotions.
Fast forward to Q1 2022 and promotional spending was significantly higher, which consequently impacted headline losses. This should be no surprise given that the platform is looking to cash in on the ongoing post-COVID recovery. With a more rational market becoming evident, we should see declines in promotional spending over the next few quarters.
There were also costs related to the IPO process in Q1.
Looking beneath the surface, we are only starting to see the impact of synergies across the GoTo Group, which includes on-demand deliveries to e-commerce, and Goto Financial. GoTo customers who use more than one service spend 8x as much as a single-use customer, according to management. This suggests a huge potential upside.
