GoTo in Indonesia says losses tripled in first quarter after IPO

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GoTo released its highly anticipated first quarter figures which saw its losses deepen as sales increased.

The ride-sharing and e-commerce company said on Monday its gross revenue hit 5.2 trillion rupees ($356 million) in the first quarter, a 53% jump from the same period a year earlier. early. But GoTo also reported that its losses widened to 6.61 trillion rupees over the same period from 1.95 trillion rupees last year. This is the first time GoTo has released its financial numbers since its $1.1 billion IPO in April.

GoTo Group CEO Andre Soelistyo said the sharp increase in losses was due to the fact that the company’s first quarter 2021 figures did not include Tokopedia (the Gojek-Tokopedia merger was completed in May). The company intends to continue to focus on ecosystem synergies to improve growth, monetization and efficiency in its quest to turn the business around from red.

“As we deepen the integration of the businesses, we have been able to improve operational efficiencies, create multiple cross-platform opportunities, and invest for GoTo’s future growth and profitability,” Soelistyo said in a statement. communicated.

Currently, GoTo’s participation rate has improved slightly from 3.5% to 3.7% thanks to better monetization in the e-commerce and on-demand segments. The rate, however, is still lower than peers in the region, such as Sea Group’s Shopee, which has a much higher catch rate of 7.5%.

GoTo also released its full-year figures on Monday, which saw its annual losses climb to 21.4 trillion rupees, a 55% increase from the previous year. While its gross revenue jumped 43.5% to 17 trillion rupees.

On-demand services were GoTo’s biggest source of revenue, contributing Rs 10.3 trillion, followed by e-commerce with Rs 6.23 trillion. GoTo aims to achieve between 5.3 and 5.6 trillion rupees in gross revenue in the next quarter. The company said it would release its full-year outlook during its second-quarter earnings call.

“We expect to reap significant additional benefits as we further integrate Gojek, Tokopedia and GoTo Financial, and have been investing in cross-platform integration accordingly since May 2021,” said GoTo CFO Jacky Lo.

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