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GoTo’s Q1 net loss nearly triples from ‘integration’
Publicly listed GoTo booked an increase in quarterly net loss to Rp 6.47 trillion (US$443 million).
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ndonesia's largest technology firm has posted a 2.6-fold increase in its first-quarter net loss from the merger of ride-hailing company Gojek and e-commerce platform Tokopedia that established it.
Publicly listed GoTo booked an increase in quarterly net loss to Rp 6.47 trillion (US$443 million) while its gross revenue increased 53 percent year-on-year (yoy) to Rp 5.2 trillion, according to the financial report it filed with the Indonesia Stock Exchange (IDX).
The two tech giants announced their merger in May 2021.
Praus Capital research head Alfred Nainggolan said that roughly one-third of GoTo's first-quarter net loss came from Tokopedia, which was not included in Gojek’s books for quarter one 2021.
"So, GoTo's performance in the first quarter of 2021 reflects the condition before it [merged with] Tokopedia. But still, even without the losses from Tokopedia in the first quarter of 2022, [GoTo's net loss still] increased compared to the first quarter of 2021," Alfred said on Tuesday.
His view was based on the losses incurred by superapp Gojek, which saw a 157 percent yoy increase in net loss to Rp 3.73 trillion in the first quarter of 2022.
IDX data showed that GoTo stock fell 3.18 percent on Tuesday, when the IDX Composite strengthened 1.58 percent.
Read also: GoTo shares slide to IPO price level
GoTo saw a significant rise in all expenses, led by a 7.6-fold increase in sales and marketing costs to Rp 3.3 trillion and then a 3.7-fold increase in general and administrative costs to Rp 2.58 trillion. This was followed by a 75 percent yoy increase in cost of revenue to Rp 1.21 trillion.
"Our focus is driving usage between our services," GoTo CEO Andre Soelistyo told a press briefing on Monday, explaining the increase in costs across the board.
“For instance, we pushed GoPay to become the most used [e-payment service] on Tokopedia, introduced the aligned status of Gojek and Tokopedia loyalty programs and consolidated our rewards point program, GoPay Coins, across the ecosystem,” he continued.
"Along with our commitment to deepen business integration, we improved operational efficiency, presented business opportunities with a multi-platform approach and invested in GoTo's growth and profitability.”
GoTo's quarterly gross transaction value (GTV) grew 45 percent yoy to Rp 139.54 trillion. Financial technology took the lion's share, growing 91 percent yoy to Rp 77 trillion, followed by e-commerce with 27 percent yoy growth to Rp 65 trillion and on-demand services growing 39 percent yoy to Rp 14 trillion.
Meanwhile, GoTo's annual GTV for 2021 grew 40 percent yoy to Rp 461 trillion. E-commerce led with 45 percent growth to Rp 230 trillion, followed by financial technology with 80 percent yoy growth to Rp 214 trillion and on-demand services growing 25 percent yoy to Rp 50 trillion.
GTV is the operational metric start-ups use to measure the total value of the transactions made on their platforms. In the case of GoTo, it includes the total value of goods and services purchased via Gojek and Tokopedia as well as the value of the payments processed via GoPay.
Last year, GoTo's annual net loss increased 50 percent yoy to Rp 21.39 trillion, its gross revenue grew 45 percent yoy to Rp 17.1 trillion and its net income grew 9 percent to Rp 5.3 trillion.
