GoTo on track to profitability, loss narrows 56% in Q2

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GoTo Group posted a net revenue of 3.6 trillion rupiah (US$232 million) in the second quarter of 2023, an 87% increase from the same period last year. Meanwhile, its net losses amounted to US$216 million, a 56% drop from Q2 2022.

The Indonesian tech giant’s adjusted EBITDA improved 72% to -US$79 million for the quarter.

With the results, GoTo – formed after the merger of Gojek and Tokopedia in 2021 – is inching closer to its profitability target this year. The group aims to achieve positive quarterly adjusted EBITDA in Q4 2023.

Still, newly appointed CEO Patrick Walujo pointed out that the end goal is not just to break even, but also to achieve “sustainable and profitable growth.” This involves expanding the consumer base without relying on unsustainable incentives, he said in a statement.

To that end, Tokopedia has collaborated with GoTo Logistics (GTL) – the group’s in-house logistics arm – to decrease shipping costs while enhancing the efficiency of shipping subsidies. GoTo said GTL has reduced Tokopedia’s logistics costs by 15%.

Overall, the group’s incentives and product marketing expenses fell 43% year on year.

Walujo, a veteran of Gojek’s early backer Northstar Group, was appointed to the CEO seat in June, but he is said to be serving temporarily until GoTo turns a profit.

Earlier this year, GoTo carried out a major restructuring across its executive team and commissioner board, which saw former Tokopedia CEO William Tanuwijaya become co-chairman of the group.

In March, the company slashed 600 positions, adding to the 1,300 jobs it had cut in November 2022.

See also: What GoPay’s new standalone app says about GoTo’s ‘super-app’ strategy

Currency converted from Indonesian rupiah to US dollar: US$1 = 15,337 rupiah.