Sign up for the Daily Newsletter, sent exclusively to our Premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a Premium subscription.
Hello reader,
Firsts are always special, even if you’re not the sentimental type. These moments – like first words, first steps, first love, first paychecks – often form cherished memories and hold an important place in our lives. But as GoTo Group found out, firsts are not always happy and sweet.
In its inaugural quarterly earnings report since going public in April, Indonesia’s biggest tech company posted a massive jump in revenue. However, an increase in spending and a 3x rise in net loss fueled investor skepticism about GoTo’s earnings potential, sending its shares down a little over 3% on Tuesday.
Nonetheless, the ride-hailing and ecommerce giant remains bullish on its profitability prospects. With growth momentum in GoTo’s favor despite macroeconomic headwinds, we chart the firm’s financial performance as it continues its bid to record a profit.
Today we look at:
- GoTo Group’s financial health in four charts
- The global ambitions of an India-based greentech firm
- Other newsy highlights such as MAS exploring the economic potential of DeFi and a short-seller betting against Byju’s and its backer
Talking about all things money, if you are fundraising or know someone who is, fill out this form, and we’ll help you spread the word.
Premium summary
Looking for green in a red abyss
Image credit: Timmy Loen
Valuing loss-making companies in a booming industry is always a tricky business for investors and VCs. And yet, as long as these firms continue to display sustained growth, they are often rewarded with rich premiums. GoTo is a great example of this.
The group recorded a net loss of close to US$1.5 billion in 2021*, but it still enjoys a valuation of over US$24 billion. While this is somewhat puzzling, a quick view of GoTo’s financial health, coupled with an understanding of Indonesia’s growing legion of tech-savvy consumers, will perhaps put things into perspective.
- Show me the cash: GoTo’s cash liquidity position slightly fell in the first quarter of 2022 to US$1.9 billion from US$2.1 billion at the end of last year. However, investors can expect to see a significant boost to the firm’s coffers, as it raised US$1.1 billion in April in one of the world’s largest IPOs this year.
-
Benefits of sustained growth: The firm has been rapidly growing across verticals, and that impact can be seen in its gross revenue in different categories. For instance, GoTo’s Q1 2022 gross revenue from ecommerce is US$131.5 million, which is more than what the segment brought in during the entire year of 2019.
Greentech goes global
TIA School
Quick bytes
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
