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GoTo Gojek Records $2.63B Net Loss for 2022 Financial Year, Stock Up 1.85% Today

Investors of Indonesia’s top tech giant GoTo Gojek Tokopedia PT Tbk (IDX: GOTO)are expressing mixed reactions to the recent performance report from the company which shows annual losses for the 2022 Financial Year widened. According to the details shared by the company, it recorded a loss of 40.4 trillion Indonesian rupiah ($2.63 billion) in what comes off as one of its toughest years thus far.

Based on what the company reported, it saw a massive growth in its net revenue which comes in at 11.3 trillion rupiah as against the 5.2 trillion rupiah in 2021. The company said its adjusted loss before interest, taxes, depreciation, and amortization was pegged at 16 trillion rupiah, compared to the 16.5 trillion rupiah in 2021.

The company’s pride is now hinged on the fact that it was able to chart a number of significant milestones despite the losses incurred and the broader global economic outlook.

“We have made considerable progress on our accelerated path to profitability, with particularly strong results in the fourth quarter,” Andre Soelistyo, GoTo Group CEO said in a statement, “The scaling back of incentives and product marketing spend has not come at the expense of revenue growth, thanks to a sharpened focus on key monetization drivers that target high-quality, profitable users. This, along with a disciplined approach to costs, is powering our profitability push.”

Part of the cost control measures Soelistyo pointed out includes the two rounds of layoffs that have been implemented by the company over the past year. Per the GoTo Group, it is on the right path toward sustainable profitability at the moment.

Despite its resilient performance, CNBC reported that there was a broad selloff in the company’s shares in the early hours of Tuesday. At the time of writing, GOTO is seeing a rebound with a 1.85% growth. The shares are trading at a price of 110 rupiah at the time of writing.

According to GoTo Gojek, it is looking at building on the template of steady consumer spending to drive the sustainability of its business moving forward.

For its previous 4th Quarter, GoTo Gojek said it “maintained positive growth as a result of its focus on sustainably growing and engaging its high quality consumer base with a pipeline of strategic products, as average consumer spending grew by 24% YoY, reaching a record high of Rp 9.6 million per consumer per year in Q4.”

With related growth track records, the company is maintaining its projection to turn its contribution margin2 positively within the first quarter of 2023. Additionally, it hopes to achieve positive Group adjusted EBITDA1 within the fourth quarter of 2023 while also reaching a full-year 2023 Group adjusted EBITDA1 to be between Rp 5.3 to Rp 4.6 trillion.

In all, GoTo aims to continually innovate in a bid to dominate the Southeast Asian tech scene.

GoTo Gojek Records $2.63B Net Loss for 2022 Financial Year, Stock Up 1.85% Today

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