GoTo’s Q3 losses narrow to 1.7 trillion rupiah as user figures rise

GOTO Group narrowed its losses by 29 per cent to 1.7 trillion rupiah (S$143.1 million) for the third quarter ended Sep 30, 2024, from 2.4 trillion rupiah a year ago. This came as revenue climbed 8 per cent to 3.9 trillion rupiah, from 3.6 trillion rupiah over the same period a year earlier.

GoTo’s group adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) turned positive, reaching a high of 137 billion rupiah, compared to a loss of 942 billion rupiah the year before. The company attributed the improved performance to a 21 per cent year-on-year increase in monthly transacting users across its ecosystem.

GoTo’s year-ago figures included contributions from Tokopedia, as well as the delivery and fulfilment businesses under GoTo Logistics that support Tokopedia. These businesses were divested in the first and second quarter of this year, respectively. GoTo’s recurring cash fixed costs fell 3 per cent year on year to 1.4 trillion rupiah.

The company said in its earnings release on Wednesday (Oct 30): “The company expects to recognise additional savings following the implementation of its recently-signed cloud service contracts with Alibaba and Tencent.”

As for the company’s operating segments, GoTo’s financial technology segment revenue grew 128 per cent year on year to one trillion rupiah, as its adjusted loss before interest, tax, depreciation and amortisation narrowed by 83 per cent to 65 billion rupiah 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”. He added: “Our progress is such that we now expect our financial technology segment to reach positive adjusted Ebitda next quarter, a year ahead of schedule.”

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Its on-demand services segment gross revenue grew 22 per cent to 3.7 trillion rupiah, while it posted an adjusted Ebitda of 156 billion rupiah, as compared to a loss of 48 billion rupiah 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. Shares of the counter closed up 1.4 per cent at 71 rupiah on Wednesday, before the results were released.