Heaptalk, Jakarta — PT GoTo Gojek Tokopedia Tbk noted an improvement in adjusted Group EBITDA of 74% YoY, which attains -Rp0.94 trillion in Q3 2023. This output is driven by increased monetization and disciplined management of operating expenses.
Simultaneously, GoTo’s Gross Transaction Value (GTV) also enhanced by 5%, attaining Rp151.3 trillion in Q3. The greater use of products and services of GoTo’s consumer groups who prioritize price is claimed to influence this enhancement.
“GTV3 Group has recorded positive growth after recording two consecutive quarters of decline, driven by growth in the e-commerce and on-demand services business units. The company’s strategic effort to expand the potential market through product development and service to respond to customers’ necessities towards price-conscious customers,”
The company’s gross revenue grew 1% YoY, reaching Rp6.0 trillion. This result is supported by savings in incentives and product marketing costs of 36% YoY, equivalent to Rp2.1 trillion for Q3 2023. Meanwhile, The company’s net income in this period decreased by 21% or around Rp.6 trillion due to adjustment measures in the first half of 2022, reaching Rp1.5 trillion.
On the other hand, GoTo Group has solid cash and balance sheets with cash, cash equivalents, and short-term deposits worth Rp25.2 trillion as of September 30, 2023. The net cash burn rate was also reduced by 76% compared to the previous year, impacting the tremendous capital of the company to carry out its business activities and execute current plans.
The company’s net loss for the current period also improved to 28% in Q3 2023, compared to the previous 65%, reaching -Rp2.4 trillion last year. This quarter’s improvement is supported by monetization and reduced incentives and marketing expenses by 36% or around Rp2.1 trillion in savings compared to the previous year.
The Company recorded a 19% decrease in fixed operating expenses and a more than 25% decrease in cloud and IT infrastructure costs, constituting the most significant part of the costs of GoTo’s income. The overall savings amount attained Rp2.5 trillion through annualized savings in fixed operational, cloud, and IT expenses. As a result, GoTo has also identified several annual savings from the two operating expense groups worth around Rp450 billion, which will be recorded in stages.
The strategic effort of GoTo Group to strengthen its growth
To amplify its robust business growth, particularly in the fintech industry, GoTo has launched four new products and features throughout the third quarter of 2023, including the GoPay application, a cash loans feature on the Tokopedia application, cash loans service on the Gojek application, and GoPay Savings by Jago.
The accelerated launch of various products and features proves GoTo’s ability to reach a more inclusive consumer base outside the Gojek and Tokopedia platforms, targeting users who are still unbanked and underbanked.
In the E-Commerce business unit, GoTo invests in its core consumer group to drive long-term growth while ensuring momentum entering 2024 by utilizing a program co-financed with merchant partners, a Merchant Co-Funding Program, and reactivating several marketing strategies.
For this reason, GoTo Group has increased its Incentives and product marketing costs by 2% compared to the previous quarter. This plan was carried out cautiously amidst increasingly tight competition during this period. As the company reported, this move aims to reflect the impact of changes to the estimation process used to determine incentive allocation on revenue.
