Indonesian internet giant GoTo has reported a net loss of IDR2.38 trillion ($205 million) in its 3QFY2023 ended September, 65% lower than the loss recorded in the previous corresponding quarter at IDR6.74 trillion.
This is driven by consistent improvements in monetisation as well as a reduction in incentives and product marketing spend of 36% y-o-y, reflecting a quarterly savings of IDR2.1 trillion, the company said in a filing.
Net revenue for 3QFY2023 at IDR3.6 trillion declined by 21% y-o-y due to a catch up adjustment for the first half of 2022 of IDR1.5 trillion, which was recorded in 3QFY2022 to reflect the impact of changes in the estimation process used to allocate incentives to corresponding revenue from customers, as reported last year.
If this adjustment was allocated to each relevant quarter in 2022, net revenue for 3QFY2022 would be IDR3.1 trillion, while the net revenue for 3QFY2023 would represent a 19% increase y-o-y.
Gross transaction volume declined by 6% y-o-y to IDR151.3 trillion, attributable to reduced incentives and product marketing over the past year. Adjusted ebitda improved by 74% y-o-y to -IDR940 billion. 3.8 trillion.
Moving forward, the company expects positive group adjusted ebitda within the fourth quarter of 2023, as well as for the full year 2023 group adjusted ebitda to be between -IDR4.5 trillion and -IDR
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“We will maintain tactical flexibility as we defend our market leading position, while continuing to prioritise the long term investment that our strategy is built upon,” says GoTo CEO Patrick Walujo.
Shares in GoTo closed at an unchanged IDR56 on Oct 30.
