GoTo Group, the Indonesian tech conglomerate, has announced its seventh consecutive quarter of adjusted EBITDA improvements as it continues its journey towards profitability.
In Q3 2023, the group’s adjusted EBITDA loss decreased to 940 billion rupiah (US$59.3 million), marking a significant 74 per cent improvement. According to CFO Jacky Lo, this achievement was attributed to the company’s efforts to reduce operating expenses by eliminating redundancies and leveraging technology.
Also Read: Ecosystem Roundup: Investree raises US$231M; GoTo scores US$150M; 3AC co-founder arrested
Furthermore, the company revealed that it has decided to put on hold its plans for an international IPO.
In terms of financial results, GoTo Group posted a net revenue of US$228.2 million for Q3 2023, representing a 21 per cent decrease compared to the same period the previous year. This decrease was mainly due to a catch-up adjustment in the same quarter in 2022. Excluding these adjustments, the net revenue for Q3 reflects a robust 19 per cent year-over-year growth.
The company also managed to reduce its net loss by 65 per cent, bringing it down to US$150.6 million, primarily driven by a 36 per cent reduction in total incentives and product marketing spend year-on-year.
Group gross transaction value returned to positive growth on a quarter-on-quarter basis, with strong performances from its e-commerce and on-demand services.
Regarding its e-commerce arm, the adjusted EBITDA loss narrowed by 84 per cent year-on-year to US$14 million. The company strategically invested in this business unit during the quarter, slightly increasing incentives and promotions while reducing platform fees.
Although the growth rate was relatively slower for its fintech arm, GoTo launched several new products, including the GoPay App, cash loans on Tokopedia, cash loans on the GoPay App, and GoPay Tabungan (Savings) by Bank Jago.
—
Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.
The post GoTo narrows let loss by 65% in Q3, shelves international IPO plans appeared first on e27.