GoTo’s new CEO inherits a tough balancing act

INDONESIA’S biggest technology company, GoTo, appears on track to hit profitability targets. Since GoTo announced a narrowed first-quarter net loss and positive contribution margin in April, shares in the company have climbed about 18 per cent on the Indonesia Stock Exchange.

Market observers seem optimistic that the company can keep up its momentum. GoTo is aiming to bring adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) into the black by the fourth quarter of 2023. But the key challenge for the group, and its new CEO Patrick Walujo, is in ensuring that the pursuit of profits does not come at the expense of healthy growth.

GoTo’s on-demand services and e-commerce segments are already experiencing declines in gross transaction value (GTV) ever since cost cuts set in.