GoTo’s Q3 losses narrow to $109m as user figures rise

Photo credit: GoTo Group

GoTo Group narrowed its losses by 29% to 1.7 trillion rupiah (US$108.6 million) for the third quarter ended Sep 30, 2024, from 2.4 trillion rupiah (US$153) a year ago.

This came as revenue climbed 8% to US$249.2 million, from US$230.1 million over the same period a year earlier.

GoTo’s group adjusted EBITDA turned positive, reaching a high of US$8.8 million, as compared to a loss of US$60.2 million a year earlier.

The company attributed the improved performance to a 21% year-on-year increase in monthly transacting users across its ecosystem.

GoTo’s recurring cash fixed costs also fell 3% year on year to US$89.5 million.

“The company expects to recognize additional savings following the implementation of its recently signed cloud service contracts with Alibaba and Tencent,” GoTo said in its most recent earnings release.

As for the company’s operating segments, GoTo’s financial technology segment revenue grew 128% year on year to US$63.9 million, as its adjusted EBITDA loss narrowed by 83% to US$4.2 million over the same period.

GoTo group chief executive Patrick Walujo said that the company’s strategy is to funnel the right users to benefit from the company’s “responsible lending products.”

“Our progress is such that we now expect our financial technology segment to reach positive adjusted EBITDA next quarter, one year ahead of schedule,” he said.

Its on-demand services segment gross revenue grew 22% to 3.7 trillion rupiah, while it posted an adjusted EBITDA of US$10 million, as compared to a loss of US$3.1 million a year ago.

Group chief financial officer Simon Ho also noted that the company is “squarely on track” to reach the company’s target of group adjusted EBITDA breakeven for the full year.

GoTo shares closed up 1.4% at 71 rupiah on Wednesday, before the results were released.

Currency converted from rupiah to US dollar: US$1 = 15,648.35 rupiah.