GoTo: Revenue from Tokopedia Service Fees Drives Performance Growth in 2024

PT GoTo Gojek Tokopedia Tbk (IDX: GOTO) projects revenue from service fees E-commerce Tokopedia can contribute significantly to its financial performance in 2024. While returning to focus on its core business in on-demand and fintech, GoTo will still receive income after no longer being a controlling shareholder Tokopedia.

In its agreement with TikTok, GoTo will earn revenue from service fees E-commerce Tokopedia quarterly. Revenue from service fees E-commerce This will only be recorded as of February 1, 2024.

GoTo Chief Financial Officer Jacky Lo believes in revenue contribution fee from Tokopedia could be one of the factors driving GoTo's business growth this year. He also added that this revenue contribution will strengthen GoTo's quarterly cash flow.

"Then in 2024, the results of [performance] in the segment E-commerce "will soon change to positive from the previous negative position of $134 million (equivalent to IDR 2 trillion) during the first nine months of 2023," said Jacky during the GoTo Public Expose session which was held today (28/2).

Meanwhile, GoTo CEO Patrick Walujo added that currently the company has a strong performance position after achieving positive adjusted EBITDA in the fourth quarter of 2023. This achievement will only be announced in the company's financial report in March 2024.

"This shows its importance e-commerce service fees which GoTo will receive in achieving better company performance this year. "GoTo will continue to improve performance and focus on implementing strategies to invest in long-term sustainable growth and have competitiveness in a dynamic market," he said.

Furthermore, the company targets the integration process between TikTok and Tokopedia to be completed within the next 1,5 months according to the trial period. The shopping experience of TikTok users is the main priority for this integration, where Tokopedia will play a role in managing the electronic system.

"The shopping process, payment, etc check-out transactions, have been separated from the TikTok application, and occur in the system backend Tokopedia. We hope this process will be completed within 1,5 months at the latest. "We continue to consult closely with the relevant ministries and in accordance with applicable regulations," added GoTo Chief Corporate Affairs Nila Marita.

Based on the data obtained from merchant Tokopedia and TikTok are involved in the Buy Local Campaign, they have achieved product sales growth of 125% compared to September 2023. As of 2023, Tokopedia is recorded as having 18 million Monthly Active Users (MAU), while TikTok Shop has an MAU of 125 million.