GoTo Group narrowed its net loss by 41 per cent for the quarter ending March 31, 2023, to Rp 3.9 trillion (US$265 million) from US$445 million recorded in the same period last year.
The improvement is mainly attributed to higher revenues and reduced incentives and product marketing spending.
In Q1 2023, GoTo Group continued to optimise monetisation and reduce costs across the organisation. Gross revenue4 grew 14 per cent YoY to Rp 6 trillion (US$408 million), while incentives and product marketing costs were reduced by Rp 2.6 trillion (US$317 million) or 39 per cent YoY.
The adjusted EBITDA for Q1 2023 improved 67 per cent YoY to US$109 million, driven by solid performances from the on-demand services and e-commerce segments.
“We continued to make considerable progress toward profitability in the first quarter of 2023, with adjusted EBITDA improving by 67 per cent YoY and 49 per cent QoQ, meaning we are halfway towards becoming adjusted EBITDA positive within Q4. Our focus on high-quality, profitable consumers along with a disciplined approach to costs has significantly increased our efficiency and gives us a glimpse of what the future looks like for GoTo,” said GoTo Group CEO Andre Soelistyo.
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The cost-saving measures implemented in Q4 2022 reduced recurring cash OpEx by around 17 per cent QoQ. Personnel cost savings from measures announced in November 2022 improved by 13 per cent from the previous quarter. Incentives and product marketing spend were also reduced by 39 per cent YoY.
On-demand services saw healthy gross revenue growth of 12 per cent in Q1, led by optimised commissions and fees in transport as well as targeted platform and delivery fees in food.
Incentives and product marketing expenses decreased by 30 per cent YoY on a blended basis between food and transport, in line with the company’s focus on increasing its high-quality consumer base, which is more resilient and less motivated by incentives.
In the e-commerce segment, GoTo’s introduction of innovative features supported continued monetisation growth during the quarter while sustaining Tokopedia’s sizable market share. These included improved merchant app functions enabling meaningful competitive insights and marketing tools to drive sales. The implementation of dynamic ad slots in search also helped increase ad relevance.
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