Indonesia-listed technology group PT GoTo Gojek Tokopedia Tbk managed to trim losses a tad in the July-September quarter as cost management efforts helped the company to meet some of its guidance ahead of time.
GoTo’s losses in the third quarter of 2022 came in lower at 6.8 trillion rupiah ($432 million) compared with 7.6 trillion rupiah in the corresponding period a year earlier. In the Jan-Sept period, however, the company’s losses added up to 20.32 trillion rupiah, almost double of 11.58 trillion rupiah a year earlier, according to its financial report.
“We had a strong third quarter, rapidly accelerating our path to profitability as revenues grew and adjusted EBITDA losses narrowed,” Andre Soelistyo, GoTo Group CEO, said in a statement.
The company reported 4.57 trillion rupiah in net revenue in the July-Sept period, a significant increase from 1.44 trillion rupiah in the corresponding period a year earlier. In the Jan-Sept period, the company’s net revenues totalled 7.97 trillion rupiah, up from 3.40 trillion rupiah in the same period of 2021.
The company’s adjusted EBITDA reached a negative 3.71 trillion rupiah in Q3 2022, compared with a negative 4.18 trillion rupiah last year. In the Jan-Sep 2022, adjusted EBITDA reached a negative 12.67 trillion rupiah, an increase from 9.98 trillion rupiah during the corresponding period a year earlier.
“Group contribution margin significantly exceeded the guidance we shared last quarter, and we achieved positive contribution margin for our on-demand services in September — well ahead of schedule,” Soelistyo said in the statement, noting that the gains were driven by the company’s product-led focus on high-quality users and disciplined cost management.
Meanwhile, the company’s gross transaction volume (GTV) in the third quarter of 2022 reached 160.94 trillion rupiah, up from 120.69 trillion rupiah a year earlier. For the Jan-Sept period, the company’s GTV increased to 451.47 trillion rupiah from 324.94 trillion rupiah a year earlier.
GoTo has set up a few targets for the full-year 2022, including its GTV at around 613-619 trillion rupiah; gross revenue at 22.6-23 trillion rupiah; and contribution margin at negative 1.06-1.09%.
As part of cost-cutting measures, GoTo recently announced its decision to let go 1,300 people, or 12% of the group’s workforce. The move was deemed necessary by the company to ensure its “long-term stability and sustainability”.