GoTo narrows adjusted losses by 89%, boosts gross revenue by 18% in Q1

Photo credit: GoTo

Indonesia’s GoTo Group showed an 89% year-on-year improvement in adjusted EBITDA, reporting an adjusted loss of 102 billion rupiah (US$6.2 million) for the first quarter of 2024.

The company had logged an adjusted EBITDA of US$4.9 million in Q4 of 2023, its first and only adjusted profitable quarter so far.

“We expect even faster growth for the rest of the year, while also remaining committed to our profitability goals,” Patrick Walujo, CEO of GoTo Group, said in a statement.

The company remains on track to meet its target “to maintain adjusted EBITDA profitability for the full year of 2024,” according to CFO Jacky Lo.

Meanwhile, gross revenues were up 18% at US$256.7 million on a pro-forma basis in Q1 2024, but they were down 11.3% on an actual basis during the quarter.

According to the company’s statement, the pro-forma figures were calculated taking into account that Tokopedia and its associated delivery and fulfillment businesses under GoTo Logistics were deconsolidated as of January 1, 2023.

TikTok had acquired 75% of Tokopedia, GoTo’s ecommerce business, for US$1.8 billion in January as its market share had been diminishing. Tokopedia was classified as an associate company as of February 1, 2024.

GoTo said it recorded US$6.7 million in ecommerce service fee revenues in February and March, “which is expected to increase as the [TikTok-Tokopedia] partnership deepens over future quarters.”

The gross revenue of Gojek, its on-demand services arm, rose 12% in Q1 to US$206 million. Its fintech segment logged a 57% jump in gross revenue at US$41 million as well.

Meanwhile, GoTo’s losses were down 85% year on year at US$25.8 million.

It attributed the overall performance to user growth, the addition of buy now, pay later in ecommerce, and accelerated integration and payments adoption associated with TikTok.

GoTo’s total group transaction value also climbed by 20% to US$7.1 billion in Q1.

Currency converted from Indonesian rupiah to US dollars: US$1 = 16,232 rupiah.