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GoTo in 'test of decisiveness' to turn adjusted EBITDA positive this year
A weak cash position and aggressive competition make the journey a hard one for Indonesia’s biggest tech firm, analysts say.
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Up and down: The stock price of Indonesia’s decacorn PT GoTo Gojek Tokopedia is displayed on a screen at the Indonesia Stock Exchange on April 12, 2022, after the firm's IPO. (Antara/Handout/GoTo)
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T GoTo Gojek Tokopedia doubled its net revenue to Rp 11.3 trillion (US$737.8 million) last year but deepened its net loss by 56 percent to Rp 40.4 trillion during the same period.
Furthermore, the local tech giant expects transaction growth to slow down in the upcoming quarters as it shifts its focus to cutting costs and serving "profitable consumers".
Analysts expressed the view that the company’s quest for profitability will not be easy and would become the "great test of leadership" for the digital platform.
GoTo CEO Andre Soelistyo said the firm was trying to improve its bottom line by identifying the most valuable users for its business.
"By concentrating our resources on retaining and engaging users who are more profitable, we're able to spend more efficiently and capture better user margin," Andre said in an earnings call on Monday.
The result appears to show in last year’s growth in the company’s take rate, which is the monetization ratio in comparison with gross transaction value (GTV).
However, GoTo said its GTV growth would slow down in the first half of this year. Thus, it would stop revealing GTV and gross revenue for this year.
