- GoTo achieves first quarterly profit under CEO Patrick Walujo’s leadership.
- Walujo’s cost-cutting, dealmaking finesse turned company profitable amid market downturn.
- Balancing GoTo role with Northstar raises doubts about long-term commitment.
Indonesian tech giant GoTo hit profitability on an adjusted basis in Q4 2023 under the leadership of CEO Patrick Walujo, who assumed the role in June 2023.
Walujo, known for co-founding private equity firm Northstar Group and being an early backer of Gojek, brought his investor background to the company, instilling financial discipline and setting aside sentimental feelings when making major decisions.
This approach proved crucial in turning the company profitable, according to Joel Shen, partner at global law firm Withers.
Walujo, the deal-maker
Leading GoTo in a declining tech market presented challenges, including net losses of US$216 million and an adjusted EBITDA of negative US$79 million in Q2 2023.
Walujo implemented cost-cutting measures and seized opportunities, such as the TikTok Shop ban in September 2023. This led to a deal between Tokopedia and TikTok, facilitating the latter’s return to business in Indonesia.
The deal showcased Walujo’s reputation as a skilled dealmaker, leveraging his private equity background to improve returns and restructure the company.
Balancing future prospects
Despite his commitment to GoTo, Walujo hasn’t given up his responsibilities at Northstar, where all investment activities still require his approval.
The question remains whether he will stay at GoTo even after the company’s financial situation improves further or revert to his role as an investor. GoTo has set its sights on breaking even at the adjusted EBITDA level by the end of 2024 and aims for sustainable profitability while discontinuing non-scalable initiatives.
An international IPO could also be a future milestone for the company, though Walujo announced that the plan had been shelved indefinitely.
To read the original article: https://www.techinasia.com/goto-ceo-delivers-first-quarterly-profit-but-will-he-stay-on
