GoTo cuts losses by 41% in Q1 2023 as profitability nears

Photo credit: GoTo Group

GoTo Group has cut its net loss to 3.9 trillion rupiah (US$265 million) in the first quarter of 2023, down 41% from the previous year.

The company’s adjusted EBITDA also improved 67% to -US$109 million in the same period. Its net revenue increased to US$224 million in Q1 2023 from US$102 million in the same quarter of 2022.

GoTo also reported a 39% year-on-year decrease for its incentives and product marketing costs in Q1 2023, resulting in total savings worth US$177 million.

These are promising results for the Indonesian tech major, which was formed in 2021 after the merger of Gojek and Tokopedia, as it aims to hit profitability in Q4 2023.

Like other global and regional tech firms, GoTo implemented significant cost-saving measures in 2022.

In March, the company slashed 600 more positions, adding to the 1,300 jobs it had shed in November 2022. In February, GoTo unveiled a major restructuring plan across its executive team and commissioner board, which saw former Tokopedia CEO William Tanuwijaya become co-chairman of the group. 

Andre Soelistyo, GoTo Group’s CEO, said in a statement that the company expects slower gross transaction value (GTV) in the near term as it reduces “low-quality transactions” on its ecosystem.

For the first quarter of this year, GoTo’s GTV only increased by 6% year on year, mostly in the ecommerce and on-demand units.

See also: Org Chart: Top brass realignment at GoTo Group