PT GoTo Gojek Tokopedia Tbk (GoTo), the largest digital ecosystem in Indonesia, announced Tuesday its gross revenue for the second quarter of 2022 increased by 45 percent year on year to Rp5.5 trillion ($370.38 million), driven by its ongoing monetization efforts.

The group said in a statement, its ongoing monetization efforts included updated merchant commissions for e-commerce, improved food delivery commissions and continued recovery in transport.

Meanwhile, the group’s gross transaction value (GTV) grew 39 percent year on year to Rp150.5 trillion ($10.14 billion).

Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss narrowed by 14 percent quarter on quarter to Rp4.1 trillion ($276.21 million) from Rp4.8 trillion ($323.37 million) in the first quarter of 2022, marking the second consecutive quarter of improved adjusted EBITDA loss.

This compares with an adjusted EBITDA loss of Rp3.9 trillion ($262.74 million) in the second quarter of 2021, a figure that reflects planned capital conservation ahead of the Gojek-Tokopedia transaction to allow for cross-platform investment and the significant impact of COVID restrictions.

“In the second quarter, we continued to drive high-quality, sustainable growth. We saw strong growth in our total GTV and gross revenues, as well as continued improvements in our margins quarter on quarter, accelerating our path to profitability,

“Our strategic move away from subsidy-driven incentives towards product-led differentiation is working. It has increased user engagement among cross-platform customers and allowed us to heighten our focus on cultivating high-quality users – the essential customers who are loyal to our platforms and generate higher value, monetizable growth,” said Andre Soelistyo, GoTo Group Chief Executive Officer.

As external, macro challenges persist, he said the group has been solidifying its leadership position in Indonesia, by expanding the breadth and diversity of its ecosystem to gain stronger operating leverage.

“As a whole, our industry must continue to adapt to the rapidly changing environment. At GoTo, we will continue to play to our strengths by maximizing cost efficiency and driving synergies within our ecosystem,” he added.

Meanwhile, GoTo Group Chief Financial Officer Jacky Lo said the group reported solid results for the second quarter of 2022, generating sustainable revenue growth while optimizing its cost structure.

“The improvements to our GTV, gross revenue and margins were made against a challenging geopolitical and macroeconomic backdrop, the continued impact of COVID-19, as well as seasonality due to the extended Ramadhan holidays,

“Looking ahead, we continue to moderate our spending supported by promising results from our investment in cross-platform and ecosystem integration. We expect the positive trajectory across our business segments to continue as we move toward our goal of reaching breakeven as an integrated ecosystem,” he said.

The group said it total group contribution margin expected to turn positive by the first quarter of 2024.

Meanwhile, its on-demand services and e-commerce contribution margin are expected to turn positive by the first quarter of 2023 and the fourth quarter of 2023, respectively

Going forward, the company said its priority is to focus on quality, sustainable growth and accelerate its path to profitability with continued sequential improvement in both contribution margin and adjusted EBITDA expected over the coming quarters.

This will be driven by improved take rate, rationalization of promotion spend and the identification and retention of profitable users, it said.

Indonesia’s GoTo launches GoFood on Tokopedia