GoTo nears turnaround after $2.2b selloff

GoTo, Southeast Asia’s worst-performing tech stock this year, is showing signs of a potential rebound as it moves toward sustained profitability.

Analysts highlight the company’s growing fintech arm, which now has over 20 million monthly transacting users, as a key driver of future growth.

Despite a 14% share decline and a US$2.2 billion drop in market capitalization, GoTo has delivered three consecutive quarters of adjusted profits.

In its latest results, GoTo reported an adjusted EBITDA of 393 billion rupiah (US$24.2 million), recovering from a loss last year.

JPMorgan’s Henry Wibowo noted that the current share price reflects a no-merger scenario and overlooks the company’s improving fundamentals, calling the stock “attractive” at current levels.

While merger speculation with Grab lingers, both firms have denied such plans.

Investors await Q2 results for further insight into fintech momentum and cost-cutting progress.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Fintech pivot represents Southeast Asia’s profitability roadmap

GoTo’s strategic shift toward financial services mirrors a broader regional trend as tech giants seek sustainable profits beyond their core businesses.

Financial services revenue nearly doubled to 3.7 trillion IDR ($230 million) in GoTo’s last fiscal year, while its consumer loan book grew 108% year-over-year to reach 5.72 trillion IDR ($344.83 million) in Q1 2025 1.

This pivot addresses a massive market opportunity with 438 million underbanked customers across Southeast Asia and a projected fintech market growth from $38 billion today to $180 billion by 2030 2.

The shift reflects a fundamental change in investor expectations from growth-at-all-costs to profitability, with regional fundraising dropping by one-third year-on-year in the first half of 2024 3.

GoTo’s 22% stake in Bank Jago provides crucial banking infrastructure while its standalone GoPay app enhances accessibility for users with lower-end smartphones, building a comprehensive financial ecosystem beyond its original transport and e-commerce foundations 1.