Indonesian biggest tech firm GoTo has foreseen its 2024 group adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to breakeven after achieving first quarterly profit.

The firm said in a statement on Tuesday that its adjusted EBITDA turned positive for the first time at Rp 77 billion ($23.2 million) for the fourth quarter of 2023, as compared to -Rp 3.1 trillion a year ago.

For full year of 2023, the group’s adjusted EBITDA also exceeded guidance as losses narrowed by 77 percent year on year to -Rp 3.7 trillion.

According to the firm, these improvements were spurred by product innovations that address broader market segments as well as disciplined cost management.

The firm’s fourth quarter gross revenue also improved by 3 percent year on year and 8 percent quarter on quarter to Rp 6.5 trillion.

As for full year, the group’s revenue climbed 6 percent year on year to Rp 24.26 trillion.

The group’s gross transaction value (GTV) increased by 8 percent quarter on quarter and 1 percent year on year, reaching Rp 163 trillion – the second consecutive quarter of sequential growth.

The group GTV, however, declined by a modest 1 percent for the full year, attributable to reduced incentives and product marketing in 2023.

The firm also plans share buyback initiative of up to $200 million, subject to regulatory and shareholder approval.

“GoTo has established a solid operational base, achieving adjusted EBITDA profitability in the fourth quarter of 2023 and forming a strategic partnership with TikTok in the e-commerce domain, which will expand into Financial Technology and On Demand Services,

“Looking ahead, our focus is on strengthening this base to foster accelerated, profitable growth,” said Patrick Walujo, GoTo Group Chief Executive Officer.

According to him, the firm will do this by staying true to its mission, which extends to enriching its customers’ experience and making its products and services accessible to a broader audience.

“Our approach is centered on continuous product innovation and operational excellence, as we aim to increase the value we offer to existing customers, expand our wallet share, and grow our customer base,

“We will double down on successful strategies that help us achieve this, while exploring innovative new ventures, and discontinuing any initiatives that are non-scalable,” he added.

Jacky Lo, GoTo Group Chief Financial Officer, noted that profitability improved in each of the firm’s segments in the fourth quarter year-on-year.

“On-demand services was adjusted EBITDA positive for the quarter, and our financial technology business sustained its rapid expansion while still maintaining year on year and quarter on quarter improvements in adjusted EBITDA,

“E-commerce also achieved positive adjusted EBITDA for the quarter amid a challenging competitive environment, and is set to become a cash-accretive segment for the company through our agreement with TikTok,” he said.

He expects to achieve group adjusted EBITDA breakeven for the full year 2024, while at the same time reinvesting profits upside back into the business in a sustainable manner as the firm continues to drive top line growth.

Going forward, GoTo expects to capture additional growth in broad user demographics in its core segments more cost-effectively across the expansive Indonesian market by leveraging its unique ecosystem that spans the full range of consumer spending.

GoTo is the largest digital ecosystem in Indonesia. It 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.

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