15-8-2023 (JAKARTA) Indonesia’s prominent technology company, GoTo, announced on Tuesday a substantial reduction in underlying losses for the second quarter, with figures dropping from 4.3 trillion rupiah to 1.2 trillion rupiah ($78.25 million) compared to the same period a year earlier. This impressive turnaround in its financial performance has been attributed to rigorous cost-cutting measures the company has taken.
GoTo, which is backed by major investors including Japan’s SoftBank Group and Singapore’s sovereign wealth fund GIC, has proactively adopted a series of cost-cutting initiatives, including workforce restructuring and layoffs. The company’s market valuation had suffered a significant decline of three-quarters since its initial public offering in April of the previous year.
Patrick Walujo, the Group CEO of GoTo, affirmed that the firm remains committed to its “cost discipline” strategy while simultaneously focusing on expanding its customer base. Walujo, who assumed the role of CEO in June, emphasized the company’s dedication to devising a comprehensive long-term strategy for growth while maintaining stringent financial discipline.
“We are developing a long-term strategy for achieving this, and in the meantime we will continue to operate with absolute cost discipline as we pivot our product mix towards the mass market,” stated Walujo.
GoTo is resolute in its objective to achieve profitability by the conclusion of the current year. Buoyed by positive results for the first half of the year, the company has revised its adjusted EBITDA outlook for 2023. The previous forecast, which projected a loss of between 5.3 trillion rupiah and 4.6 trillion rupiah, has been updated to a revised range of loss between 4.5 trillion rupiah and 3.8 trillion rupiah.
In the second quarter of 2023, net revenues experienced a remarkable upswing, reaching 3.6 trillion rupiah, an 86.7 percent increase compared to the same period in 2022. The company reported an overall gross transaction value of 143.7 trillion rupiah for the quarter, showcasing its robust performance in various business segments.
For the first half of the year, GoTo achieved a noteworthy 48 percent reduction in losses compared to the same period in the previous year. The company’s e-commerce arm, Tokopedia, emerged as Indonesia’s second-largest online marketplace in the preceding year. However, it now faces intensifying competition as smaller rivals, led by TikTok, intensify their efforts in the thriving economy of Southeast Asia.
Following the earnings announcement, shares of GoTo, recognized by the amalgamation of Gojek and Tokopedia under its brand, demonstrated an upward trajectory, closing with a 6.59 percent increase at 97 rupiah per share.
