JAKARTA, investor.id – PT GoTo Gojek Tokopedia Tbk (GOTO) was able to reduce adjusted EBITDA losses to IDR 13 billion (ytd) during January-September 2024. That way, GOTO is on the right track towards positive profitability, namely positive adjusted EBITDA in 2024.
“The decline in adjusted EBITDA loss through quarter III-2024 is supported by the improvement gross transaction value (GTV) in succession,” wrote BRI Danareksa Sekuritas analysts, Niko Margaronis and Kafi Ananta in their research.
Segment on dmother sservice (ODS), GoTo Financial (GTF), and e-commerce has contributed positively to adjusted EBITDA, with an increase in variable costs of 14 bps qoq, so that GOTO achieved adjusted EBITDA of IDR 137 billion in the third quarter of 2024.
GOTO management is optimistic that GTV in the ODS segment will grow even bigger in the fourth quarter of 2024. This momentum is believed to continue in 2025 with growth of 13.7% yoy, because GOTO and its sector have opportunities to increase take rate from advertising. “We conservatively estimate the level take rate “ODS remains stable above 21%,” said Niko.
BRI Danareksa Sekuritas also projects sequential growth in GTF loans of around 20% qoq, driven by increased downloads of the GoPay application in under-penetrated markets. “With these new revenue streams, we expect variable costs to remain stable as a percentage of GTV, supporting further contribution margin (CM) expansion in the medium term,” explained Niko.
Share Price Recommendations and Targets
Editor: Jahari Mahardhika
([email protected])
Follow Channel Telegram Official us to update investor.id articles
Read other news on Google News
LIVE STREAMING
Watch information shows and economic, financial and capital market analysis on IDTV
GOTO’s Climb Towards Profitability: A Comedy of Numbers
JAKARTA, investor.id – So, PT GoTo Gojek Tokopedia Tbk (ticker: GOTO—because obviously, “GOT” wasn’t available!) has managed to snip its adjusted EBITDA losses to a paltry IDR 13 billion year-to-date by the end of September 2024. Oh, how I’d love to see their profit-loss statement. It probably reads like a great tragedy—some parts heartbreaking, others just plain confusing.
Riding the Rollercoaster of Financial Statements
According to some financial wizards over at BRI Danareksa Sekuritas—shout out to analysts Niko Margaronis and Kafi Ananta—this slashing of losses is largely thanks to an uptick in gross transaction value (GTV). That’s “gross” as in lots of it but still not enough to throw a profit party!
The company’s various segments—let’s give a round of applause to the on dother service, GoTo Financial, and e-commerce—have been like those relentless gym buddies who keep pushing you when you’re about to collapse. Thanks to them, GOTO managed an adjusted EBITDA of a respectable IDR 137 billion in Q3. If only my treadmill could show such growth after a few months of effort!
Optimism is in the Air… or is it?
Now, management is strapping itself in, proclaiming that GTV in the ODS segment is set to grow even bigger in Q4 2024. It’s like they’re betting on a horse that clearly tripped over its own legs last race! Experts predict that GOTO may see a growth of 13.7% year-on-year, like a snake trying to forward its own tail. But hey, why not dream big? After all, they’re also figuring they can sweeten their take rate from advertising without breaking a sweat. “We estimate ODS’s take rate will remain stable above 21%,” Niko confidently stated, probably while balancing a hopeful smile and a crystal ball.
Loan Growth: The Sweet Spot?
According to those financial soothsayers, GOTO is also looking at a 20% growth in GTF loans quarter-over-quarter—driven by users who finally decided to download the GoPay app. I mean, it’s taken a while, but better late than never, right? With the dawn of new revenue streams, they’re betting the variable costs will hold steady, supporting some contribution margin expansion. I guess ‘stability’ is a great keyword in corporate lingo—much like ‘spirit’ in a good horror movie.
Market Reflections and Conclusions
In a world where everything goes digital faster than you can say “IPO,” GOTO’s journey resembles that of a stand-up comedian finding their punchline—messy, surprising, and occasionally awkward. As investors, it’s all about watching the numbers dance, sometimes performing in sync and other times stumbling. But let’s raise a glass (perhaps a virtual GoPay) to GOTO’s gradual emergence from the land of financial losses. We’ll be sitting on the edge of our seats, popcorn in hand, for the next thrilling episode of “Will GOTO Become Profitable?”
Editor: Jahari Mahardhika
Email: [email protected]
Follow our official channel on Telegram for updates on investor.id articles: Follow
Read other news on Google News: Read Now
JAKARTA, investor.id – PT GoTo Gojek Tokopedia Tbk (GOTO) has significantly curtailed its adjusted EBITDA losses to just IDR 13 billion for the year-to-date period of January to September 2024. This impressive milestone indicates that GOTO is making substantial progress on its roadmap toward achieving positive profitability, particularly the target of positive adjusted EBITDA by the end of 2024.
“The decline in adjusted EBITDA loss through quarter III-2024 is supported by the consistent improvement in gross transaction value (GTV),” stated BRI Danareksa Sekuritas analysts, Niko Margaronis and Kafi Ananta, in their detailed research report. This suggests a growing consumer confidence and enhanced transaction volumes within the platform.
In particular, the performance of the On-Demand Services (ODS) segment, along with GoTo Financial (GTF) and the e-commerce sector, has yielded a favorable contribution to adjusted EBITDA. This achievement comes despite a slight increase in variable costs of 14 basis points quarter-on-quarter, culminating in an adjusted EBITDA of IDR 137 billion for the third quarter of 2024.
GOTO management is notably optimistic about the growth potential for GTV in the ODS segment as they look ahead to the fourth quarter of 2024. This positive momentum is expected to carry over into 2025, forecasting an impressive growth rate of 13.7% year-over-year, bolstered by opportunities to elevate the take rate from advertising. “We conservatively estimate the take rate for ODS will remain stable above 21%,” remarked Niko, highlighting confidence in sustained performance.
Furthermore, BRI Danareksa Sekuritas anticipates a sequential growth in GTF loans of approximately 20% quarter-on-quarter, largely fueled by a surge in downloads of the GoPay application particularly in under-penetrated markets. “With these new revenue streams emerging, we expect variable costs to stabilize as a percentage of GTV, thereby facilitating further contribution margin (CM) expansion in the medium term,” explained Niko, underscoring a positive outlook.
Share Price Recommendations and Targets
Editor: Jahari Mahardhika ([email protected])
Follow Channel Telegram Official us to update investor.id articles
Read other news on Google News
Watch information shows and economic, financial and capital market analysis on IDTV
How is GOTO planning to manage variable costs while expanding its revenue streams from GTF loans and advertising?
Ow anticipating further growth in its GTV for the ODS segment, projecting an increase of 13.7% year-on-year in the fourth quarter of 2024. Despite past challenges, there remains a sense of optimism among stakeholders regarding GOTO’s ability to stabilize and even enhance its take rate from advertising, which management estimates will hover above 21%.
On the lending front, an expected quarter-over-quarter growth in GTF loans of around 20% could be attributed to the increasing user adoption of the GoPay app. As the company diversifies its revenue streams, they express confidence that variable costs will remain manageable, potentially allowing for further contribution margin expansion in the near term.
GOTO’s evolution in the fast-evolving digital landscape showcases a complex journey, filled with unexpected challenges and fluctuations akin to a comedic performance. As the company edges closer to breaking through the limits of its financial losses, investors remain keen observers, eagerly awaiting the next chapter in GOTO’s ongoing saga of transformation and ambition.
This narrative not only sheds light on GOTO’s financial trajectory but also speaks to broader themes of resilience and adaptation in the face of evolving market dynamics, providing valuable insights to stakeholders and observers alike. With a forward-looking approach and the watchful eye of its investors, GOTO could very well emerge as a leading player within Indonesia’s vibrant digital economy.
