GoTo Q2 loss narrows to 3.3 trillion rupiah, raises adjusted Ebitda guidance for FY2023

INDONESIAN tech giant GoTo Group posted a net loss of 3.3 trillion rupiah (S$292 million) for its second half ended Jun 30, narrowing by 56 per cent from the net loss of 7.6 trillion rupiah in the same period a year earlier.

This was driven by healthy revenues and reduced incentives and product marketing spend, said GoTo – which comprises ride-hailing service Gojek and e-commerce platform Tokopedia – on Tuesday (Aug 15).

Gross revenue for the quarter rose 6 per cent year on year to 5.8 trillion rupiah, amid continued incentive and product marketing cost reductions, as well as growing monetisation across GoTo’s ecosystem.

On an adjusted Ebitda (earnings before interest, taxes, depreciation and amortisation) basis, GoTo’s loss for the quarter narrowed 72 per cent to 1.2 trillion rupiah.

Due to its better-than-expected progress, the company is revising the guidance for its full-year adjusted Ebitda loss to be between 3.8 trillion rupiah and 4.5 trillion rupiah, from between 4.6 trillion rupiah and 5.3 trillion rupiah.

The company maintains its goal to achieve positive adjusted Ebitda within the fourth quarter of 2023.

Meanwhile, overall gross transaction value (GTV) for the quarter fell 5 per cent to 143.7 trillion rupiah, due to reduced incentives and product marketing, but also driven by seasonal factors such as the higher number of public holidays in Indonesia in April and June, GoTo noted.

GTV for the group’s on-demand services and e-commerce segment also declined as the group focuses on profitable users.

For its on-demand services segment, adjusted Ebitda loss improved by 89 per cent year on year to 164 billion rupiah.

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Gross revenue for the segment also rose 3.5 per cent to 2.9 trillion rupiah, amid a focus on profitability and monetisation.

GoTo said the market potential of the segment can double if it expands its reach to fully accommodate budget consumers. Thus, it will focus on addressing the segment through products with additional appeal, flexibility and quality.

For the e-commerce segment, adjusted Ebitda loss narrowed 86 per cent to 229 billion rupiah, due to the rationalisation of incentives and product marketing spend.

Gross revenue rose 8.5 per cent to 2.2 trillion rupiah. The company noted that strong progress has been made in monetisation as commission adjustments implemented earlier in the year have taken effect.

The group’s fintech segment saw adjusted Ebitda loss narrow by 45 per cent to 508 billion rupiah, while gross revenue rose 2 per cent to 339 billion rupiah.

The company expects the recent launch of the GoPay app to help it amass a broader and more inclusive user base beyond the Gojek and Tokopedia platforms. This will ultimately also serve as an effective tool for rolling out financial services to new users.

As for its logistics segment, adjusted Ebitda loss improved 62 per cent to 94 billion rupiah, while gross revenue rose 10 per cent to 562 billion rupiah.

The group plans to further reduce consumers’ logistics costs by scaling up its in-house delivery service and fulfilment capacity and leveraging its in-house allocation engine to direct orders to the most efficient third parties, where applicable.