GoTo Group said that its June quarter gross revenue surged 45% to 5.5 trillion rupiah (approximately US$370 million) compared to the same period in 2021, propelled by recovery in the mobility sector and the growing take rate in ecommerce and food delivery businesses.
Photo credit: GoTo Group
The quarterly gross revenue of GoTo Group’s on-demand and ecommerce services jumped 41% and 59%, respectively, outpacing the gross transaction value (GTV) in these segments. During the quarter, these two services also increased their take rate to 21.6% and 3.1%, respectively.
“Our strategic move away from subsidy-driven incentives towards product-led differentiation is working. It has increased user engagement among cross-platform customers and allowed us to heighten our focus on cultivating high-quality users,” GoTo Group CEO Andre Soelistyo said in a statement.
The group’s operating loss for Q2 widened by around 12% quarter on quarter.
However, the company said its EBITDA losses narrowed 13% during the period to US$280 million. A contributing factor was the decrease in expenses for promotions as well as sales and marketing in the June quarter compared to March quarter.
GoTo Group expects to achieve positive contribution margin for on-demand by Q1 2023 and for ecommerce by Q4 2023. Total group contribution margin is also anticipated to turn positive by Q1 2024.
See also: GoTo Group’s financial health in 4 charts
After securing around US$923 million via IPO, the company’s cash position sat at around US$2.4 billion at the end-June quarter. Citing sources, Reuters reported that GoTo Group wants to raise US$1 billion through a convertible bond issue in the December quarter.
Currency converted from Indonesian rupiah to US dollar: US$1 = 14,870 rupiah.
Editing by Samreen Ahmad and Eileen C. Ang
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