Heaptalk, Jakarta — Giant digital ecosystem GoTo Gojek Tokopedia posted net revenue of USD273 million, increasing 18% QoQ and 26% YoY. The group also retained positive YoY gross revenue growth of 3% by addressing more significant market segments and improving the consumer lending business.
Furthermore, GoTo also maintains a solid cash position and balance sheet. As a result, the company possessed USD 1.8 billion in cash, cash equivalents, and short-term time deposits as of December 31st. Following the deconsolidation of Tokopedia effective on February 1st, these balances would amount to approximately USD1.5 billion.
As cash flow continues to improve, Gojek Tokopedia will optimize its capital usage and align with a newly developed capital allocation plan, including a share buyback initiative of up to USD200 million, subject to regulatory and shareholder approval at the coming Annual General Meeting of Shareholders (AGMS).
“GoTo has built a solid base, achieving adjusted EBITDA profitability in Q4 2023 and forming a strategic partnership with TikTok in the e-commerce domain. This partnership will expand into financial technology and on-demand services. Looking ahead, we focus on strengthening this base to foster accelerated, profitable growth,” GoTo Group CEO Patrick Walujo said.
On the other hand, Group Adjusted EBITDA turned positive for the first time at USD4.8 million for the fourth quarter, while Group GTV for the quarter grew at 8% QoQ and 1% YoY, with gross revenue increasing 8% QoQ and 3% YoY to USD413 million in 4Q23. Product innovations that address broader market segments and disciplined cost management spurred these improvements.
Regarding the business loss, GoTo booked its net loss of -5.7 billion for the entire year, driven primarily by a USD5 billion goodwill reversal, as required by prevailing accounting standards, brought about by Tokopedia and TikTok transactions last month. The loss due to the reversal of goodwill is non-recurring and non-cash in nature and has no impact on the company’s Adjusted EBITDA and cash flow. Also, GoTo’s operating loss in 4Q2023 was -95.3 million, which was diminished by 80% from the same period in 2022.
How is GoTo’s unit proliferation?
- On-Demand Services
The company continued to reduce the service cost, expanding essential products to more cities to attract mass market users while maintaining driver-partners income in its on-demand services. Adjusted EBITDA for this unit also reached USD15 million in this period.
Further, gross revenue increased by about 7.2%, equal to USD203 million, boosted partly by value-added services and advertising revenue, which increased this business line take rate by 66 bps QoQ. The report noted that this year’s gross revenue elevated by 4% YoY.
- e-commerce
Following Tokopedia’s and TikTok’s cooperation, Adjusted EBITDA for e-commerce turned positive at USD14.1 million, or 34% of e-commerce GTV, bolstered by advertising and cost optimization. Tokopedia reactivated select marketing and promotions to drive growth in the fourth quarter. E-commerce GTV improved by 5% QoQ and declined 8% YoY in 4Q23.
- Fintech
Adjusted EBITDA for this line improved by 77% YoY and 57% QoQ in 4Q23 to -USD10.6 million, or -0.16% of fintech GTV. Gross revenue for fintech boomed around 26% YoY and 34% QoQ in 4Q23 to USD38 million, driven by growth in lending and consumer payments.
- Logistics
GoTo’s logistics continued to drive down delivery costs for consumers and sellers. The company recorded Adjusted EBITDA at -7.2 million, flat QoQ. This business line’s gross revenue decreased 2%, approximately USD518 million, driven by lower volumes from e-commerce due to the rationalization of incentives.
