In today’s briefing:
- GoTo (GOTO IJ) – Shifting the Needle?
- GoTo: Cost Cutting Measures Pay Off but What About Growth?
GoTo (GOTO IJ) – Shifting the Needle?
- GoTo is laser-focused on shifting the needle towards a semblance of profitability and likely with renewed vigour with a new management team in place.
- 2Q2023 results will likely reflect a slower headline GMV but should show an improvement in take rates and contribution margin. More colour on recent initiatives would be welcomed by investors.
- GoTo has launched a standalone GoPay app which should help to boost its off-platform usage and has the potential to nurture more collaboration with Bank Jago.
GoTo: Cost Cutting Measures Pay Off but What About Growth?
- GoTo Gojek Tokopedia Tbk PT (GOTO IJ) reported 2Q2023 results. Gross revenue increased 5.6% YoY to IDR5.83trn while adj. EBITDA losses further narrowed down to IDR1.21trn vs IDR4.3trn in 2Q2022.
- The company’s cost discipline measures have helped cut down on losses but growth rates have seen huge declines over the last few quarters.
- Demand for food delivery has declined in Indonesia while entry of TikToK Shop has posed significant threat on Tokopedia, Shopee and other e-commerce platforms in the country.
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