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GOTO Optimistic to Reach Positive EBITDA at the End of 2023

This target is estimated to be realized faster than the previous projection, namely the second quarter of 2025

PT GoTo Gojek Tokopedia Tbk (GOTO) is optimistic that it can score positive results for adjusted EBITDA in the fourth quarter of 2023 in order to accelerate its profitability target. This target is estimated to be realized faster than the previous projection, namely 18 months or the second quarter of 2025.

Main Director of the GoTo Group, Andre Soelistyo, said that this target would bring the company closer to positive operational cash flow. This is the result of GoTo strategic plan, including revenue optimization (revenue optimization), operating expense management (cost management), as well as the development of integrated ecosystem-based products and services (ecosystem product growth).

"The company must take new steps that prioritize sustainable profitability over rapid growth. This is achieved by continuing to innovate products that ensure the creation of long-term value for GoTo and its stakeholders," he said in a press statement, yesterday (16/2).

According to him, according to the adjusted EBITDA structure (adjusted EBITDA) is proxy indicators to show cash flows that can be used to grow the business independently, without external funding.

Adjusted EBITDA is a non-PSAK financial measure that starts with loss before income tax and adjusts for preparation and amortization expenses, finance income, interest costs, to calculating losses on impairment of investments in associated entities.

Andre continued, over the past year the company has implemented a mature plan to accelerate its steps towards profitability, focusing on optimizing revenue, managing operating expenses in a disciplined manner, as well as developing various integrated ecosystem-based products and services.

"The company has the right human resources, supported by sufficient liquidity to carry out our plans, in line with our mission to build the most impactful technology ecosystem in Indonesia, and be able to provide positive value to society."

GoTo Group Finance Director Jacky Lo added, the contribution margin for the fourth quarter of 2022 had exceeded the company's performance guidelines, while the gross transaction value (GTV) and gross income were within the company's performance guidelines.

"This shows that the company can continue to grow in a healthy manner while continuing to accelerate towards profitability. The company conducts regular reviews to ensure optimal implementation of business strategies that focus on its core business," said Lo.

He also said that the company is considering options to do so asset divestment non-core (non-core), along with the focus on achieving the profitability target at the end of this year.

The following are three GoTo strategic steps that have been implemented since 2022:

    • Revenue Optimization

Includes exploring opportunities to optimize the commission structure in the On-Demand Services and E-Commerce business units, including those announced in December 2022 and January 2023. This strategy also includes developing businesses with higher income margins, such as advertising, premium transportation services, and continuously developing loan products.

    • Operating Expense Management

Includes a comprehensive analysis that is carried out routinely for each component of operating expenses, to ensure that each cost incurred provides optimal returns that support the achievement of the company's profitability targets. This includes optimizing costs and incentives marketing more targeted, unification of award points, as well as other cost rationalization initiatives, including infrastructure development engineering together, devices and applications middle layerr, optimizing operational expenses, as well as increasing organizational efficiency and effectiveness

    • Integrated Ecosystem-based Product Development

GoTo's competitive advantage lies in the product ecosystem which includes On-Demand Services, E-Commerce, and Financial Technology services. The company will continue to develop products that take advantage of these advantages, so as to be able to provide more solutions for customers and support quality growth in the long term.

Currently the company has not fully disclosed its financial performance for the fourth quarter and full year. The plan will be submitted in March.

Financial performance

  1. In the fourth quarter of 2022, the GoTo Group's GTV value grew 18% (YoY) to reach IDR 162 trillion. Throughout 2022, annual GTV will increase by 33% to reach IDR 613 trillion.
  2. Gross revenue in the fourth quarter of 2022 and performance full year only delivered is at the upper bound of the performance guideline.
  3. Contribution margin in the fourth quarter of 2022 and performance full year, only delivered is at the upper limit of performance guidelines.
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