PT GoTo Gojek Tokopedia Tbk (GOTO), Indonesia’s largest digital ecosystem company, reported a significant reduction in its losses for the third quarter of 2024. The company’s net loss attributable to the owners of the parent entity shrank by 55% year-on-year, dropping to IDR 4.31 trillion from IDR 9.54 trillion in the same period last year.
This improvement is attributed to higher revenue and substantial cost reductions. According to its financial statement, GOTO’s net revenue for the first nine months of 2024 reached IDR 11.66 trillion, reflecting an 11% increase from IDR 10.51 trillion in the same period in 2023. Operational costs and expenses also saw a dramatic decline, falling 29% year-on-year to IDR 13.71 trillion from IDR 19.31 trillion.
As a result, GOTO’s operating losses significantly narrowed to IDR 2.05 trillion from IDR 8.79 trillion a year earlier. Pre-tax losses also dropped to IDR 4.6 trillion from IDR 9.8 trillion, and after factoring in income tax benefits, the company’s total losses for the period amounted to IDR 4.53 trillion, compared to IDR 9.59 trillion in the third quarter of 2023.
Revenue Growth and EBITDA Improvement
GoTo’s gross revenue surged by 34% year-on-year to IDR 4.7 trillion during the third quarter of 2024. The company also achieved a significant milestone by turning its adjusted EBITDA positive for the first time, reaching IDR 137 billion, a sharp turnaround from a loss of IDR 559 billion in the same period last year.
The achievement was supported by increased revenue streams and reduced spending on incentives and marketing. Notably, the company secured an e-commerce service fee from Tokopedia amounting to IDR 191 billion during the third quarter, translating to a net contribution of IDR 172 billion after deducting value-added tax (VAT).
Strategic Initiatives Driving Growth
Patrick Walujo, CEO of GoTo Group, expressed optimism about the company’s trajectory. “Our strategy is working as every part of our ecosystem adds value to our business units—a model that is yielding results as we aggressively acquire new users and improve profitability across our rapidly growing operations,” he said in a statement on Wednesday.
Walujo highlighted the company’s success in leveraging its unique ecosystem to drive growth and sustainability. “Our technology is enhancing accessibility and emission-free transportation, benefiting over 55 million users daily,” he added.
The company anticipates additional cost savings in the coming months, thanks to newly signed cloud service agreements with Alibaba and Tencent. These partnerships are expected to optimize operational efficiencies further and support long-term growth.
Focus on Core Business Segments
GOTO plans to expand its demographic base and grow its On-Demand Services and Financial Technology units. The company aims to maximize the potential of its comprehensive ecosystem to meet diverse consumer needs across Indonesia.
In the Financial Technology segment, GOTO is prioritizing efficient growth to reach a broader market. The company expects this strategy to align with its goal of achieving breakeven adjusted EBITDA for the entire fiscal year 2024.
Despite its positive outlook, GOTO remains cautious about external factors that could impact its operations. The company acknowledged that uncertainties such as rising competition, inflation rates, and other external variables could influence its performance in the quarters ahead.
“The guidance is based on current market conditions and reflects our initial projections. However, various uncertainties and risks, including escalating market competition and inflation, will need to be carefully managed,” the company stated.
Company Overview and Ecosystem
Founded on December 15, 2015, as PT Aplikasi Karya Anak Bangsa, GoTo evolved into Indonesia’s leading digital services ecosystem after acquiring Tokopedia in 2021. The combined entity offers a diverse range of services, including on-demand transportation (Gojek), e-commerce (Tokopedia), and financial solutions (GoTo Financial).
With a presence spanning Indonesia and several international markets, GoTo serves over 55 million users, providing solutions that simplify everyday transactions while fostering economic growth.
The company’s ability to integrate services across its ecosystem has been a critical factor in driving operational efficiency and creating a seamless user experience.
