GoTo inches closer to profitability, shelves international IPO plans

Photo credit: GoTo Group

Posting its seventh consecutive quarter of adjusted EBITDA improvements, GoTo Group said it is continuing “to progress on our path to profitability.”

The group’s adjusted EBITDA loss narrowed to 940 billion rupiah (US$59.3 million) in the third quarter of 2023, marking a 74% improvement. This was underpinned by the company’s lower operating expenses, which it accomplished by “eliminating redundancies” and “leveraging our technology,” said Jacky Lo, GoTo Group’s CFO.

Additionally, the Indonesia-listed tech titan said it shelved its plans for an international IPO – a move already approved by its shareholders.

The company also posted US$228.2 million in net revenue for Q3 2023, shrinking 21% from the same year-ago period. The decrease was on the back of a catch-up adjustment, which was recorded in the same quarter last year. If taken out, net revenue for the most recent quarter would represent a 19% jump year over year.

The firm cut down its net loss by 65% to US$150.6 million, as total incentives and product marketing spend slimmed by 36% year on year.

Meanwhile, group gross transaction value returned to positive on a quarter-on-quarter basis, driven by strong performances from both its ecommerce and on-demand services, the company’s CEO Patrick Walujo noted.

The adjusted EBITDA loss from on-demand services fell to US$3 million, representing a 95% improvement. Lo added that before counting in corporate costs, the segment is profitable.

“Having said that, there is now increasing competition risk in the market, which we expect to continue,” he said.

As for its ecommerce arm, the adjusted EBITDA loss narrowed 84% year on year to US$14 million. The company said it “tactically invested” in the business unit during the quarter, implementing a small increase in incentives and promotions while reducing platform fees.

Although growth was relatively slower for its fintech arm, GoTo launched several new products during the quarter to boost and diversify its user base for the segment.

They include the GoPay App, cash loans on Tokopedia, cash loans on the GoPay App, and GoPay Tabungan (Savings) by Bank Jago.

See also: Mapping public tech companies in Indonesia (updated)

Currency converted from rupiah to US dollar: US$1 = 15,854.59 rupiah.