More Efficient Business, GOTO Q2-2022 Contribution Margin Soars

By : Abraham Sihombing | Wednesday, August 31 2022 - 12:26 IWST

GoTo is a blend of Gojek and Tokopedia. (Photo: republika.co.id)
GoTo is a blend of Gojek and Tokopedia. (Photo: republika.co.id)

INDUSTRY.co.id - Jakarta - A technology issuer with a leading ecosystem in Southeast Asia, PT GoTo Gojek Tokopedia Tbk (GOTO), releases the first half of 2022 financial performance to the same period in 2021 (year on year/yoy).

 

Based on the company's financial report published on Tuesday (30/8/2022), GoTo recorded an increase in terms of contribution margin for January to June 2022. The adjusted contribution margin and EBITDA as a percentage of the Gross Transaction Value (GTV) grew by 47 basis points (bps) and 69 bps respectively in the second quarter 2022 compared to the previous quarter.

 

The GoTo Group is expected to achieve a positive contribution margin in the first quarter of 2024. While, the on-demand services and e-commerce segments are expected to achieve positive contribution margins in the first quarter of 2023 and the fourth quarters of 2023, respectively. The contribution margin is the ratio of the profitability value of each product in the GoTo company before being reduced by headquarters costs or operating expenses.

 

Andre Soelistyo, the President Director of GoTo Group, disclosed, the company in the second quarter continually focussed on the sustainable and quality business growth.

 

“In the second quarter, we’re supporting a quality business growth. Compared with a year earlier, we’d succeed to increase the company’s GTV and gross revenue. The growth was also happened in the company’s business margin compared with a quarter earlier. It was a reason for our measures to achieve profitabilities,” Andre explained in an official statement, quoted on Tuesday (30/08/2022).

 

Furthermore, the company’s strategic to promote a product differentiation as well as shifting from incentive-based business has produced good results. Since implementing the strategy, cross-platform usage has increased as well as providing room to sharpen focus, increasing the number of loyal customers with high-value monetization.

 

The company has also reduced the amount of incentives as a percentage of GTV by 52 bps compared to the a quarter earlier along with the monetization strengthening. This matter has increased the Group's contribution margin by 47 basis points, and the adjusted EBITDA margin as a percentage of GTV raised by 69 bps on a quarter-on-quarter basis, thereby accelerating the company's pace towards profitability.

 

This progress was supported by, first, an monetization increase in the on-demand services and e-commerce segments, with the take rates increase by 60 bps and 18 bps, respectively, to 21.6% and 3.1%. This growth was driven by the merchant take rate scheme renewal in the e-commerce business as well as the platform fees implementation.

 

Second, the total incentives as a percentage of GTV reduced by 52 basis points quarter-on-quarter to -3.5%, supported by the company's focus on producing quality growth.

 

Third, better utilization of machine learning funds and models to improve the accuracy of advertisement targeting and the results of any marketing and promotional spending expenditure.

 

At last, the ecosystem synergies, such as the wider utilization of GoPayCoins, have begun to drive efficiency as well as an increase in contribution margins per consumer.

 

According to the financial statement as of June 2022, the GOTO’s gross revenue raised by 49% year on year to Rp10.7 trillion compared to the same period in a year earlier of Rp7.19 trillion. Meanwhile, the company’s GTV soared by 42% to Rp290.5 trillion compared to the same period in a year earlier.

 

Especially for the second quarter of 2022, GOTO recorded the GTV value of Rp150.5 trillion, exceeding its target around Rp142-150 trillion. Meanwhile, its gross earnings for the second quarter of 2022 was of Rp5.5 trillion, reaching the upper limit of its quarterly revenue target.

 

However, the company’s adjusted EBITDA loss for the first half of 2022 was of Rp9.0 trillion, compared to the same period in 2021 of Rp5.8 trillion.

 

Meanwhile, the company’s net revenue for the first half of 2022 was recorded of Rp3.39 trillion, rising by 73% compared to the first half of 2021 of Rp1.96 trillion.***

News Comment

Today's Industry

PT Autopedia Sukses Lestari Tbk (ASLC)

Rabu, 25 Januari 2023 - 09:30 WIB

ASLC Successfully Surpasses 2022 Used Car Sales Target via Caroline.id

PT Autopedia Sukses Lestari Tbk (ASLC), a company engaged in used vehicles auction and trading of used cars, succeeded in selling 2,481 units of used cars through used car dealers under its…

A woman is paying her attention to the Jakarta Composite Index board movement. (Document of INDUSTRY.co.id)

Kamis, 05 Januari 2023 - 22:29 WIB

New Economic Board, GOTO Share Moves Closer to Global Indices

The presence of the New Economic Board on the Indonesia Stock Exchange (IDX) brings many benefits to PT GoTo Gojek Tokopedia Tbk (GOTO). One of them is getting closer to the shares listing of…

PT Alkindo Naratama Tbk (“ALDO”)

Senin, 19 Desember 2022 - 23:51 WIB

ALDO Aims 2023 Sales to Increase More Than Double

PT Alkindo Naratama Tbk (“ALDO”), a listed company engaged in the integrated paper and chemical business are optimistic that the Company's performance in 2023 will improve, in line with…

Lauren Blasco of ACV.

Senin, 19 Desember 2022 - 22:39 WIB

Indonesian Chamber of Commerce and Industry taps AC Ventures’ ESG head to join task force

The Indonesian Chamber of Commerce and Industry (KADIN) recently tapped AC Ventures’ (ACV) Head of ESG Lauren Blasco to join its newly formed ESG task force, an elite group of stakeholders…

PT Adi Sarana Armada Tbk (ASSA)

Senin, 19 Desember 2022 - 21:12 WIB

Keep Optimistic, President Director of ASSA Adds Ownership

President Director of PT Adi Sarana Armada Tbk (ASSA), Prodjo Sunarjanto, has increased his portion of share ownership on 28 November 2022. Prodjo has purchased 1,128,300 shares at a price of…