DEPOK (eNBe Indonesia) - Shares of technology firm GoTo Gojek Tokopedia (GOTO) gained 4.21% to Rp99 on Thursday (April 27), to make market capitalization of Rp117.25 trillion, as market participants responded positively the company’s financial results in the first quarter.
The stock, however, has fallen 23.8% from its recent peak at Rp130 on March 8, 2023, and clearly way below target price set by institutions like Citicorp and CGS-CIMB last year.
GOTO suffered loss of Rp3.86 trillion for the first quarter (Q1) of 2023 period, but narrowed by 40.3% year on year (y/y), mainly due to a decrease in GOTO’s costs and expenses by 20.60% to Rp7.37 trillion, from Rp9.29 trillion in Q1 of 2022, while net revenues expanded by 122.55% to Rp3.33 trillion.
GOTO managed to cut sales and marketing expenses significantly to Rp1.6 trillion from Rp3.3 trillion in the first quarter of 2021. The biggest cut was in advertising and marketing costs, which dropped to Rp438 billion from Rp1.14 trillion.
GOTO’s net income surged 122.55% y/y to Rp3.33 trillion in Q1 this year, driven by revenue from the on-demand business (Rp2.93 trillion), financial technology Rp244.2 billion, e-commerce Rp2.23 trillion, logistics Rp547.1 billion, and other segments Rp19.26 billion.
GOTO’s Ebitda grew by 67% y/y, to Rp1.6 trillion, supported by strong performance, especially from the on-demand services and e-commerce business units.
Bear in mind that GOTO suffered operating losses of Rp4.04 trillion in the quarter, whilst substantially smaller than Rp7.79 trillion in the corresponding period last year.
As of the end of Q1 2023, GOTO recorded cash receipts from customers of Rp6.03 trillion, up 15.4% y/y.
Total cash and cash equivalents of GOTO reached Rp26.77 trillion, down 0.07% y/y. Its assets was down 2.15% y/y to Rp135.95 trillion, while liability fell 4.87% y/y to Rp15.6 trillion.
Then, GOTO’s total equity reached Rp120.3 trillion at the end of March 2023, lower than Rp122.7 trillion at the end of 2022.
In addition, GOTO posted a gross transaction value or gross transaction value (GTV) of Rp149 trillion, grew 6% y/y.
From this total GTV, the company managed to pocket a gross income of Rp6 trillion, up 14.3% y/y. This figure reflects an increase in the take rate.
That said, the growth in gross income–which was higher than the increase in GTV–showed that management was able to optimize the revenue machine by monetizing all business units.
GOTO’s cash position and balance sheet remained solid with cash and its equivalent of Rp26.7 trillion and a credit facility of around Rp4.65 trillion.
Furthermore, efforts to save on GOTO’s operating expenses in the fourth quarter (Q4) of 2022 have reduced recurring cash operating expenses by up to Rp460 billion or 17% compared to the previous quarter.
Savings in personnel costs from the steps taken in November 2022, was around Rp210 billion, an increase of 13% compared to the previous quarter.
Incentive expenses and product marketing also fell significantly by 39% compared to the same period the previous year, reflecting a total savings of Rp2.6 trillion.
Let’s see whether GOTO can achieve its target to record profitability by the end of this year.***