GoTo Group logs adjusted profit for Q4, plans to buy back $200m worth of shares

Photo credit: GoTo Group

After facing continuous losses, GoTo Group made a profit on an adjusted EBITDA basis in the last quarter of its 2023 fiscal year.

In Q4 2023, the company’s adjusted EBITDA improved to 77 billion rupiah (US$4.9 million), recovering from US$197 million in adjusted losses in the same period the year before.

This came on the back of the company’s efforts to cater to broader market segments and “disciplined cost management,” GoTo said in a statement. During the quarter, the company shrank its total cost of revenues to US$83.7 million, with sales and marketing expenses decreasing 42% to US$84.4 million.

The company also announced a US$200 million share buyback program, which could signal the company’s confidence that its share prices will go up, at least in the short term.

GoTo also expects to hit group-level adjusted EBITDA breakeven for the full 2024 financial year.

The groups’s net revenue amounted to US$273 million in Q4, showing a notable 26% increase from the same period the year before.

Most of this amount came from its on-demand services arm Gojek, whose gross revenue rose 4% annually to US$769.7 million. Following it was ecommerce business Tokopedia, which reported US$578.9 million in gross revenue but logged a greater year-on-year leap at 11%.

Both segments also generated adjusted EBITDA profit.

Meanwhile, total group transaction value also went up to US$10.36 billion in Q4, an 8% uptick from the previous quarter.

However, the group booked a net loss of US$5.7 billion for the full year – widening by 124% year over year. Of the amount, US$5.15 billion came in the quarter, primarily driven by roughly a US$5 billion goodwill reversal as required by prevailing accounting standards.

This was brought about by the Tokopedia and TikTok deal that resulted in the loss of control of Tokopedia starting February 1, 2024, GoTo said.

Nevertheless, the group registered a 30% year-on-year growth in overall revenue for the full year at US$940.2 million.

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