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GoTo claims revenue hike, sustainable growth in Q2
In its second-quarter financial report, GoTo reported that it had recorded a good performance in both its gross transaction value (GTV) and gross income, with 39 and 45 percent year-on-year (yoy) increases, respectively.
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Andre Soelistyo, GoTo’s CEO announces the company's initial public offering (IPO) on the Indonesia Stock Exchange under ticker (GoTo /Public relations)
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oTo is running strong in the second quarter of this year as it shows sustainable growth, increased monetization, more effective incentive spending and optimized operational costs.
In its second-quarter financial report released on Tuesday, GoTo reported it had recorded a good performance in both its gross transaction value (GTV) and gross income, with 39 and 45 percent year-on-year (yoy) increases, respectively.
“Throughout the second quarter, the company kept focusing on good and sustainable growth. The GTV and gross income have kept growing compared with last year. The business margin is also getting better compared with the previous quarter. This growth trend pushes us closer to profitability,” said GoTo Group director Andre Soelistyo.
The growth is thought to be generated by the recovery of the mobility sector, as well as the expansion of its monetization efforts, which include the renewal of e-commerce sellers and the food delivery services commission arrangement.
“The enterprise’s strategy of prioritizing product differentiation and the shift toward incentive-based business has brought us to good fruition. Since the implementation of this strategy, cross-platform usage has increased, giving us room to sharpen the focus on increasing the number of loyal customers with higher monetization value,” Andre said.
The percentage of incentives within GoTo's GTV has been decreased by the company by as many as 52 basis points (bps) compared with the previous quarter, which in turn increased its contribution margin by 47 bps, along with earnings before its interests, taxes, depreciation and amortization (EBITDA) margin, increasing by 69 bps quarter-on-quarter.
The enterprise claimed that this performance was supported by the increase of monetization in the segment of on-demand services and e-commerce with take rates of 60 and 18 bps respectively alongside the 52 bps decrease in total incentives within the GTV.
Moreover, the company also found that improving fund usage and the machine learning model for higher accuracy in advert targeting, as well as ecosystem synergy for escalating the per-consumer contribution margin further advanced this positive trend.
The financial report showed that the second quarter of 2022 was different when put side by side with the same period last year, due to the loosening of mobility limitations, especially around Idul Fitri.
Despite the decline in activity during Idul Fitri due to the population partaking in mudik (exodus), GoTo claimed that consumer usage remained high, seeing as how spending per user grew 17 percent yoy, while annual transacting users grew by 28 percent yoy to 67 million users.
“All in all, the industry will always adapt to the fast-changing conditions [of the macroeconomy]. With that in mind, GoTo will always implement cost efficiency and push for optimum synergy within its ecosystem,” Andre said.
