GoTo Outlines Its Strategy to Strengthen Performance
as part of Public Expose
Company focus in 2024 is investing in the long-term, sustainable growth that will strengthen its business and increase resilience and competitiveness
Jakarta, 28 February 2024 - PT GoTo Gojek Tokopedia Tbk (“GoTo” or “the Company”), Indonesia’s largest digital ecosystem, today held a public expose, to provide an update on latest developments at the Company. This included the recently announced transaction with TikTok, as well as an overview of the Company’s priorities for 2024 following the achievement of positive adjusted EBITDA in the fourth quarter of 2023.
Patrick Walujo, GoTo Group CEO, said: “Achieving Adjusted EBITDA profitability in Q4 2023 marked a pivotal moment for GoTo, showcasing the operational efficiency we have achieved across business units. Our e-commerce business is generating positive and growing cash flow, fueled by the recently announced TikTok partnership. On-Demand-Services is profitable and growing. Additionally, our Financial Technology Services arm, anchored by GoPay, is set for significant growth amidst increasing digital finance adoption. Our focus now is on investing in long-term, sustainable growth that will strengthen our digital footprint and increase our resilience and competitiveness in a dynamic market.”
During the event, GoTo’s management highlighted the strategy that it will focus on to ensure the Company can grow sustainably in 2024 and beyond.
Hans Patuwo, GoTo Group COO, said: “Our business is performing well, and we are excited about its long term prospects as we continue to optimize profitability while driving growth. We are doing this by expanding our total addressable market with a focus on budget-conscious consumers, while launching and growing higher margin products such as those in consumer lending. Underpinning this is the relentless focus on strengthening our fundamentals to ensure we operate in the most efficient way possible.”
To broaden its total addressable market, GoTo launched various product innovations in 2023 that cater specifically to cost-conscious consumers. This includes GoCar Hemat (Economy Mode), GoFood Mode Hemat, GoTransit, and the GoPay application, which has been downloaded more than 10 million times. The Company will continue to explore ways to increase the usage of these products, in line with its efforts to unlock new users.
Another key focus area for GoTo is to strengthen monetization through its higher take-rate financial products. In September 2023, the Company launched GoPay Pinjam on the GoPay application, with the aim of reaching out to a higher number of new users beyond the Gojek and Tokopedia applications. GoPay Pinjam has performed well so far, with an increase in lending from 4Q 2022 to 3Q 2023. Together with its strategic partner Bank Jago, GoTo also launched GoPay Tabungan by Jago, a savings account that offers various features ranging from everyday payments to saving for the future.
As part of its ongoing efforts to strengthen its fundamentals, GoTo will also continue to manage its costs in a prudent manner, including IT and infrastructure costs, fixed operating expenses, as well as incentives and promotion expenses.
Further updates on GoTo’s business progress will be announced at its 4Q and full year 2023 results in March 2024.
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Disclaimer and Cautionary Statement: Forward-Looking Statements
This document may contain forward-looking information or forward-looking statements, including discussions of strategies, future plans and indicative future financial and operational performance (collectively, “forward-looking information”). All information contained in this communication that is not clearly historical in nature or that necessarily depends on future or subsequent events is forward-looking information prepared as of the date hereof and is based upon the opinions and estimates of management and the information available to management as of the date hereof. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "expect", "likely", "may", "will", "should", "intend", "anticipate", "potential", "proposed", "estimate" and other similar words, expressions and phrases, including negative and grammatical variations thereof, or statements that certain events or conditions "may,” or "will" happen, or by discussion of strategy and future plans.Forward-looking information is based upon a number of current internal expectations, estimates, projections, assumptions and beliefs that, while considered reasonable by management, are inherently subject to significant business, economic, competitive landscape and other uncertainties and contingencies. Forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors (including the risks and uncertainties in the Company’s consolidated financial statements and Management Discussion & Analysis available on the Company’s website), that may cause actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by such forward-looking information. Any estimates, investment strategies or views expressed in this document are based upon current market conditions, and/or data and information provided by unaffiliated third parties, and are subject to change without notice. To the extent any information in this document was obtained from third party sources, the Company has not independently verified that information, and there is a risk that the assumptions made and conclusions drawn by the Company based on such information are not accurate. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise. Readers are cautioned not to put undue reliance on this forward-looking information and not to use it as a sole basis for making any investment decision.
About GoTo Group
GoTo is the largest digital ecosystem in Indonesia. GoTo's mission is to ‘empower progress' by offering technology infrastructure and solutions that help everyone to access and thrive in the digital economy. The GoTo ecosystem provides a wide range of services including mobility, food delivery, groceries and logistics, as well as payments, financial services, and technology solutions for merchants. The ecosystem also provides e-commerce services through Tokopedia and banking services through its partnership with Bank Jago.
Media Contacts
Corporate Affairs (corporate.affairs@gotocompany.com)
