PT GoTo Gojek Tokopedia (GoTo) says it is on track to reach profitability in 2024 as it issues its financial report for this year’s third quarter.
T GoTo Gojek Tokopedia (GoTo) says it is on track to reach profitability, with a positive contribution margin in the first quarter of 2024.
The company announced that its on-demand service segment could achieve a positive contribution margin in the first quarter of 2023, but the e-commerce segment lags behind, as its contribution margin is projected to turn positive only by the end of next year, according to GoTo’s third-quarter financial report published on Monday.
“We had a strong third quarter, rapidly accelerating our path to profitability as revenues grew and adjusted [earnings before interest, taxes, depreciation and amortization (EBITDA)] losses narrowed. 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,” GoTo CEO and cofounder Andre Soelistyo said in a statement accompanying the quarterly data.
For this year’s third quarter, the company reported a 33 percent year-on-year (yoy) increase in its gross transaction value (GTV) at Rp 161 trillion (US$10.2 million), beating the company’s guidance.
Meanwhile, its gross revenue rose 30 percent yoy to Rp 5.9 trillion and its adjusted EBITDA shrunk 11 percent yoy to Rp 3.7 billion.
Read also: GoTo claims revenue hike, sustainable growth in Q2
GoTo noted that the adjusted EBITDA loss had been shrinking for three quarters in a row.
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