GoTo Group, the prominent digital ecosystem in Indonesia, has announced impressive financial results for the third quarter of 2023. The company has continued its trend of steady growth, reporting a remarkable 74% year-on-year increase in Adjusted EBITDA, reaching -Rp 0.94 trillion. This accomplishment marks the seventh consecutive quarter of improvement. Moreover, this reflects the company’s commitment to enhancing monetization and effectively managing expenses.
Some of the significant financial highlights from this quarter include:
- The Group’s contribution margin surged to 0.75% of Gross Transaction Value (GTV), amounting to Rp 1.1 trillion.
- Gross revenue exhibited a 1% year-on-year growth, totaling Rp 6.0 trillion.
- Group GTV experienced a noteworthy 5% increase compared to the previous quarter, reaching Rp 151.3 trillion, following two consecutive quarters of decline.
GoTo Group has strategically expanded its addressable market. They’ve introduced products and services designed for price-conscious consumers. These efforts have significantly contributed to the company’s robust financial performance.
GoTo Groups various sectors see year-on-year improvements
In the On-Demand Services sector, GoTo Group witnessed impressive figures, with Adjusted EBITDA registering a notable 95% year-on-year increase. Gross revenue showed a 4.6% increase compared to the previous quarter. Moreover, the contribution margin reached an impressive 5.0% of GTV, marking a substantial 527 basis points (bps) year-on-year improvement.
The E-commerce segment also experienced substantial growth, with Adjusted EBITDA demonstrating an 84% year-on-year increase. The E-commerce contribution margin remained in positive territory, reaching 0.67% of GTV and increasing by 156 bps year-on-year. Although E-commerce GTV increased by 6% compared to the previous quarter, it declined 11% year-on-year due to the reduction of incentives.
In the Financial Technology sector, GoTo Group reported a notable 55% year-on-year growth in Adjusted EBITDA.
Furthermore, the company achieved significant reductions in delivery expenses and shipping subsidy costs in the Logistics sector.
GoTo Group’s commitment to serving a diverse user base and its dedication to offering innovative services have contributed to its robust financial performance. Looking ahead, the company expects to maintain positive Group Adjusted EBITDA in the fourth quarter of 2023, with a full-year 2023 Group Adjusted EBITDA projected to be between -Rp 4.5 and -Rp 3.8 trillion. These results underscore GoTo Group’s resilience and its pursuit of growth and profitability in the dynamic Indonesian market.