GOTO's Financial Picture Post-Tokopedia Transaction: Q1 Review

PT GoTo Gojek Tokopedia Tbk (GOTO) reported a substantial improvement in its financial performance for the first quarter. The company witnessed a significant decline in net loss, plummeting by 78 percent to Rp 862 billion compared to the same period last year when it stood at Rp 3.86 trillion.

This positive shift was primarily driven by a robust increase in revenue amidst a notable reduction in costs and expenses. GOTO's net revenue surged to Rp 4.07 trillion, marking a significant 22 percent rise from the previous quarter's Rp 3.33 trillion.

The company's net revenue achievement exceeded market expectations, nearly doubling the consensus analyst projection compiled by Bloomberg, which anticipated Rp 2.67 trillion.

Key drivers of revenue growth included net revenue from the on-demand business (Rp 2.29 trillion), financial technology (Rp 636 billion), and e-commerce (Rp 803 billion). Notably, e-commerce service fees from the TikTok partnership contributed Rp 109.63 billion from February to March 2024.

Concurrently, GOTO recorded a 32 percent decrease in total costs and expenses to Rp 5.02 trillion from the previous Rp 7.37 trillion. Consequently, the company's operational loss shrank significantly by 77 percent to Rp 942 billion compared to Rp 4.04 trillion previously.

In light of these developments, GOTO's adjusted EBITDA improved by 89 percent to minus Rp 102 billion, compared to minus Rp 1.59 trillion in the previous period. This signifies a significant enhancement in operational efficiency. 

Additionally, GOTO's contribution margin surged by 124 percent to Rp 1.42 trillion from Rp 636 billion previously. This signifies a substantial increase in the portion of revenue available to cover fixed costs and generate profit.