Indonesia’s largest technology firm PT GoTo Gojek Tokopedia Tbk (GoTo) says it is on track to meet full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) break even target after its adjusted EBITDA fell in the first quarter.

GoTo said in a statement on Monday that its first quarter group adjusted losses before interest, taxes, depreciation, and amortization plunged 89 percent year on year to Rp 102 billion ($6.27 million) as its revenue improved.

According to the statement, the firm’s first quarter gross revenues increased by 18 percent year on year to Rp 4.2 trillion.

The group’s gross transaction value increased by 20 percent year on year to Rp 116.5 trillion, while its core GTV rose 32 percent year on year to Rp 54.6 trillion.

The firm said the performance was driven by user growth, buy now pay later (BNPL) in e-commerce and accelerated integration and payments adoption associated with TikTok.

“Last year, we built a solid foundation and began implementing a growth strategy centered on expanding our user base, increasing customer wallet share, reducing operating costs, and strengthening our partnership with TikTok,

“In the first quarter, we accelerated this strategy as we reinvested in our products, yielding promising results in March as well as April. We expect even faster growth for the rest of the year, while also remaining committed to our profitability goals,” said Patrick Walujo, GoTo Group Chief Executive Officer.

Jacky Lo, GoTo Group Chief Financial Officer, said that in the first quarter, the firm continued to see strong top-line growth.

“…The adjusted EBITDA remained in line with our plan, putting us on track to meet our target to maintain adjusted EBITDA profitability for the full year of 2024,

“We will continue to invest prudently, while maintaining cost discipline as we aim to ensure that our growth can be sustained over the long term,” he added.

It is noted that the group’s first quarter incentive and product marketing spend decreased by 31 percent year on year.

GoTo also maintained a solid cash position and balance sheet. As of March 31, 2024, it had Rp 23 trillion ($1.5 billion) in cash, cash equivalents, and short-term time deposits.

The firm’s financial technology core GTV increased 40 percent year on year to Rp 48.4 trillion, as outstanding loans grew 43 percent quarter on quarter and more than 3 times year-on-year to Rp 2.7 trillion.

GoTo said the company has stepped up its investment in the Fintech segment as it accelerates the integration of its products with TikTok and Tokopedia.

It said the fintech business is on track to be adjusted EBITDA profitable by the end of 2025.

Its on-demand services GTV, however, was flat year on year at Rp 13.9 trillion.

The growth in on-demand services is expected to accelerate further as the company implements its strategy to deepen wallet share, expand its user base and grow its value-added services, said the firm.

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

Under this plan and investments in the company’s ongoing growth, particularly in its fast-growing finTech business, the company currently expects full-year 2024 group adjusted EBITDA to breakeven.

GoTo is the largest digital ecosystem in Indonesia which 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.

Indonesia’s GoTo foresees breakeven in 2024 after first quarterly profit