PT GoTo Gojek Tokopedia Tbk (GoTo), the largest digital ecosystem in Indonesia, announced Tuesday that its gross revenue increased by 39 percent year on year to Rp 4.3 trillion ($265.58 million) in the second quarter.

The firm said in a statement that its adjusted losses before interest, taxes, depreciation, and amortization was reduced by 95 percent year on year and 53 percent quarter on quarter to Rp 48 billion.

This is putting the company on track to meet its full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) breakeven target.

According to the firm, this strong performance was driven primarily by user growth in affordable On-Demand Services products, increasing GoPay app adoption and loan book growth, as well as disciplined cost control.

The firm’s core gross transaction value (GTV) which excludes GoTo’s merchant payment gateway, grew by 54 percent year on year to Rp 63.2 trillion, while its GTV increased 26 percent year on year to Rp121.5 trillion.

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.

“Growth accelerated strongly in the second quarter as our strategic focus on mass market consumers, product innovation and relentless execution continues to pay off,

“Addressing the needs of our consumers, whether they seek value or convenience, will continue to provide the foundation for our growth, as we aim to increase our topline while remaining committed to adjusted EBITDA breakeven for the full year,” said Patrick Walujo, GoTo Group Chief Executive Officer.

“As we mark the completion of my first year as Chief Executive Officer, the company’s fundamentals are the strongest they’ve ever been,

“I am proud to have played a role in bringing about such an improvement, and am fortunate to have inherited an excellent team, supported by strong new talent that has helped drive us forward,” he added.

Jacky Lo, GoTo Group Chief Financial Officer, said that in the second quarter, the firm saw a rapid acceleration of growth.

According to him, Gojek Plus subscriber numbers have doubled since the beginning of the year, while adoption of the GoPay app and its lending products has expanded significantly.

“This, combined with the progress of our mass market strategy, drove a 20 percent year-on-year increase in monthly transacting users across the group in the second quarter,” he noted.

According to him, this growth was achieved while the firm continued to reduce its costs, as it improved its reported adjusted EBITDA on a year-on-year basis for the eighth quarter in a row.

“As such, we believe we are on the right track to continue growing while remaining committed to our profitability goals,” he added.

It is noted that the firm’s on-demand services saw continued growth due to uptake of its affordable transport and delivery products, which are at the heart of the company’s mass market strategy.

GTV and completed order numbers in Indonesia reached their highest level since the company began pursuing profitability while costs continued to come down.

Ongoing adoption of mass market products and subscriptions, is expected to propel the Company’s growth going forward.

GoTo is a technology 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.

Indonesia’s GoTo says on track to meet full-year adjusted EBITDA break even target