GoTo Posts Seventh Straight Quarter of Improving EBITDA, Shelves International IPO Plans to Focus on Core Business
GoTo Group, the Indonesia-listed tech titan, has posted its seventh consecutive quarter of adjusted EBITDA improvements, bringing it closer to profitability.
The group’s adjusted EBITDA loss narrowed to 940 billion rupiah ($59.3 million) in Q3 2023, marking a 74% improvement.
Lower operational costs, which the business achieved by “eliminating redundancies” and “leveraging our technology,” provided support for this, according to GoTo Group CFO Jacky Lo.
GoTo Shelves International IPO Plans
GoTo Group has also announced that it has shelved its plans for an international IPO, a move already approved by its shareholders.
The company posted $228.2 million in net revenue for Q3 2023, shrinking 21% from the same year-ago period. The reduction resulted from a catch-up adjustment that was noted during the same quarter in the previous year.
If net revenue from the latest quarter is excluded, it would indicate a 19% increase in revenue from the previous year.
GoTo’s Investment Strategy
GoTo Group’s investment strategy is centered around key themes such as e-commerce, on-demand services, and fintech.
The firm cut down its net loss by 65% to $150.6 million, as total incentives and product marketing spending slimmed by 36% year on year.
Meanwhile, group’s gross transaction value returned to positive on a quarter-on-quarter basis, driven by strong performances from both its e-commerce and on-demand services.
The Future of GoTo
GoTo Group is expected to continue progressing on its path to profitability with this new funding round.
The company aims to invest in early-stage fintech startups in both the U.S. and emerging markets to build a fairer financial system.
With this new funding round, GoTo Group is well-positioned to continue its mission of investing in companies that can create systemic change while delivering venture returns.
