GoTo, a prominent Indonesian ride-hailing firm, recently announced its first-ever quarterly net profit. This is a significant milestone for the company, which has seen strong revenue growth and increased cost control measures begin to pay dividends.
GoTo was established in 2021 as a result of the merger between Gojek and Tokopedia. Despite its combined strengths, the company has faced difficulties in generating profits due to intense market competition and high operating expenses.
However, the tides have turned for GoTo, with the company recording a net profit of 171 billion rupiah (US$9.94 million) for the quarter ending March 31. This is a stark contrast to the loss of 367 billion rupiah it incurred during the same period the previous year.
GoTo’s diverse service offering, which includes ride-hailing, food delivery, logistics, and financial services, has contributed to its improved financial performance. The company announced a 26% year-on-year increase in net revenue for the first quarter, bringing it to 5.3 trillion rupiah.
GoTo’s Chief Financial Officer, Simon Ho, explains that the company’s revenue growth has significantly overshadowed its rising costs across both fintech and on-demand services. There has also been a decrease in the cost to serve, as the company’s tech and AI strategies begin to take effect.
Additionally, GoTo reported an attributable profit of 257.94 billion rupiah for the quarter, a considerable improvement from last year’s loss of 283.33 billion rupiah.
Despite the current global macroeconomic uncertainty, GoTo has maintained its full-year adjusted EBITDA forecast of between 3.2 trillion rupiah and 3.4 trillion rupiah. The company, which enjoys support from Japan’s SoftBank Group and Singapore’s sovereign wealth fund GIC, has previously been the subject of merger rumors with Singapore-based competitor Grab, though no agreement has been formalized.
What was GoTo’s net profit for the quarter ending March 31?
GoTo’s net profit for the quarter ending on March 31 was 171 billion rupiah (US$9.94 million).
What services does GoTo offer?
GoTo offers a variety of services including ride-hailing, food delivery, logistics, and financial services.
What is GoTo’s full-year adjusted EBITDA forecast?
Despite the current global macroeconomic uncertainty, GoTo has maintained its full-year adjusted EBITDA forecast of between 3.2 trillion rupiah and 3.4 trillion rupiah.
