- GoTo Group reports Q4 adjusted EBITDA profit of US$4.9M.
- The company attributes success to disciplined cost management and strong revenue growth.
- GoTo remains confident, announcing a US$200M share buyback program.
Turnaround driven by cost management
GoTo Group has reported an adjusted EBITDA profit of 77 billion rupiah (US$4.9 million) for the fourth quarter of its 2023 fiscal year, a significant improvement from the US$197 million in adjusted losses recorded in the same period the previous year.
The company attributed this turnaround to its efforts in catering to broader market segments and implementing disciplined cost management.
During the quarter, GoTo reduced its total cost of revenues to US$83.7 million and decreased sales and marketing expenses by 42% to US$84.4 million.
Strong revenue growth
GoTo’s net revenue for Q4 reached US$273 million, representing a 26% increase from the same period the previous year.
The majority of this revenue came from its on-demand services arm, Gojek, which saw a 4% annual increase in gross revenue to US$769.7 million, followed by e-commerce business Tokopedia, which reported US$578.9 million in gross revenue and an 11% year-on-year growth.
The group’s total transaction value also increased by 8% from the previous quarter to US$10.36 billion. GoTo has set an ambitious target of achieving group-level adjusted EBITDA breakeven for the full 2024 financial year.
Substantial full-year loss offset
Despite the positive Q4 results, GoTo recorded a net loss of US$5.7 billion for the full year, a 124% increase from the previous year.
The majority of this loss, US$5.15 billion, occurred in the fourth quarter, primarily driven by a US$5 billion goodwill reversal required by accounting standards due to the Tokopedia and TikTok deal.
The group still registered a 30% year-on-year growth in overall revenue for the full year, reaching US$940.2 million.
GoTo’s announcement of a US$200 million share buyback program signifies the company’s confidence in its future performance and the potential for its share prices to increase in the short term.
To read the original article: https://www.techinasia.com/goto-group-logs-adjusted-profit-for-q4-plans-to-buy-back-200m-worth-of-shares
