GoTo recorded IDR 3.33 trillion in net revenue in the first quarter of 2023

The efficiency measures we have implemented so far have significantly reduced our operating expense base

Jakarta ( – PT GoTo Gojek Tokopedia Tbk recorded a net income of IDR 3.33 trillion in the first quarter of 2023, an increase of 123 percent compared to the achievement in the first quarter of 2022 of IDR 1.49 trillion.

“The efficiency measures we have implemented so far have significantly reduced the operational expenditure base,” said GoTo Group Finance Director Jacky Lo in a press statement received by in Jakarta, Thursday.

GoTo also recorded a gross transaction value (GTV) of IDR 148.5 trillion, growing 6 percent on an annual basis (year on year/yoy) in the first quarter of 2023.

Of the total GTV, the company managed to pocket a gross income of IDR 5.98 trillion, growing 14.3 percent compared to the same period the previous year (yoy).

Jacky said efficiency was the key to increasing the company’s net income because management only spent IDR 2.63 trillion on promotion costs and customer incentives in the first quarter of 2023, lower than the first quarter of 2022 which was IDR 3.73 trillion for the same expenditure item.

This shows that there were savings of more than IDR 1.08 trillion, an improvement of 29 percent on an annual basis.

“Maintaining cost discipline is critical to our long-term strategy as a low cost base will provide us with additional flexibility to allocate capital to accelerate future growth,” he said.

In addition to cutting incentive costs for customers, GoTo also carried out a series of efficiencies in operational costs, including reducing general and administrative expenses by 11 percent to IDR 2.29 trillion.

Sales and marketing expenses also shrank by 50 percent from IDR 3.3 trillion to IDR 1.63 trillion, resulting in savings of more than IDR 1.6 trillion.

Efficiency capabilities through improving the cost structure and controlling expense items made GoTo’s operational expenses shrink 20.6 percent to IDR 7.37 trillion. All of these achievements resulted in a net loss for the year of IDR 3.89 trillion.

Even though he still recorded losses, Jacky said GoTo was slowly starting to turn things around. As a comparison, GoTo’s net loss in the first quarter of 2022 reached IDR 6.6 trillion. It means profits and losses improved 41 percent in the past year, making the company’s cash flow healthier.

GoTo’s cash position and balance sheet remain solid with a cash amount of IDR 26.7 trillion and a credit facility of around IDR 4.65 trillion.

“We are optimistic that we will achieve positive operational cash flow without additional external funding,” he said.

BCA Sekuritas analyst Fahkrul Arifin assesses that GoTo’s efforts have been visible since the second quarter of 2022. GoTo consistently minimizes expenses and encourages increased monetization through adjustments tariffs, and launching new products with higher margins.

“This first quarter performance is a good footing and momentum turn around for GoTo in accelerating profitability,” he said.

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Reporter: Martha Herlinawati Simanjuntak
Editor: Faisal Yunianto


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