This weekly newsletter chronicles top digital themes and trends playing out in SE Asia, especially Indonesia. We will decode policy and regulatory changes affecting digital economy sectors, crunch earnings data of top players, track developments related to gig economy workers and attempt to piece together ecosystem buildouts in some of the fastest-growing, venture-backed plays. You can access the previous editions of the Vantage Point weekly posts here.
Executive Summary
- GoTo makes a bold shift from EBITDA to GTV
- May’s malware attack continues to weigh on BFI Finance
- Saratoga swings into the red due to commodity skew
GoTo makes a bold shift from EBITDA to GTV
GoTo’s Q3 2023 results were probably the most interesting to date, with a pivot from EBITDA breakeven at all costs to headline GTV growth and increasing its total addressable market.
That is not to say that the company sacrificed its quest for profitability completely, given its adjusted EBITDA in Q3 2023 improved to 0.94 trillion rupiah, or -0.62% of GTV, a growth of 74% YoY and 22% QoQ.
GoTo’s Q3 2023 earnings signalled an end to sequential declines in its GTV over the past two quarters and a return to selectively investing in growth, especially in e-commerce. The company achieved a GTV growth of 5% QoQ, with improvements coming from both online delivery services (ODS) and e-commerce.
Group GTV declined 6% YoY as a result of reduced incentives and product marketing over the past year. The total number of profitable users and their contribution to GTV remained stable QoQ, although annual transacting users (ATUs) declined slightly to 52 million in Q3 2023 from 53 million in the previous quarter.
Although the company does not release monthly transacting user (MTU) numbers, the management confirmed that it has started to see positive growth in Q3 2023. This will eventually show up in ATUs over the next few quarters.
