Indonesia’s GoTo reports narrower Q1 loss, expects core profit in Q4

On Thursday, Indonesia’s largest tech business, PT GoTo Gojek Tokopedia Tbk (GOTO.JK), announced a reduced quarterly loss and expects to turn a core profit in the fourth quarter as revenue climbed and expense cuts paid off.

GoTo, like many tech companies, has cut investment and laid off workers this year due to global economic uncertainty.

Group CEO Andre Soelistyo said the company was halfway to achieving adjusted EBITDA positive in the fourth quarter.

On a 14% increase in gross revenue to 6 trillion rupiah, adjusted EBITDA rose 67% in the first quarter.

“Our focus on high-quality, profitable consumers along with a disciplined approach to costs has significantly increased our efficiency,” he said.

After cost-cutting measures, including the layoff of more than 1,300 workers since last year, GoTo, backed by SoftBank Group Corp (9984.T), expects its 2023 adjusted EBITDA loss to be 5.3 trillion rupiah to 4.6 trillion ($360.5 million to $312.9 million).

“A lower cost base will provide us with additional flexibility to allocate capital for the acceleration of growth in the future,” GoTo Group CFO Jacky Lo said.

In the first quarter of 2023, GoTo lost 3.9 trillion rupiah, down from 6.6 trillion a year earlier.

GoTo closed up 4.21% at 99 rupiah per share on Thursday before the earnings announcement.

($1=14,700.0000 rupiah)