GoTo said in a financial statement that the January-through-June figure had widened from red ink of 6.6 trillion Indonesian rupiah in the same period last year. Revenue for the first half of this year, meanwhile, rose to 3.3 trillion Indonesian rupiah. The results are GoTo’s second since going public in April and underscore the challenge it faces in achieving profitability.
The company was formed in May 2021 by the merging of ride-hailing and food delivery company Gojek and local e-commerce major Tokopedia. It is part of a wave of local tech unicorns – startups valued at more than US$1 billion – that has emerged in Southeast Asia in recent years. Others include Indonesia’s Bukalapak, a major e-commerce platform operator.
GoTo posted a 21.4 trillion Indonesian rupiah net loss in 2021. For the first three months of this year, it racked up a net loss of 6.5 trillion Indonesian rupiah – worse than a pre-merger assumed 1.8 trillion Indonesian rupiah loss in the same period of 2021.
Nevertheless,the company has consistently expressed optimism that the situation will improve, citing growth in gross transaction value and gross revenue last year and in the first quarter of this year.
During an earnings call, CEO Andre Soelistyo continued the upbeat message, saying GoTo’s on-demand and e-commerce businesses are expected to break even by the first and fourth quarters of 2023, respectively.
GoTo is not the only Southeast Asian tech company struggling to make money.
Singapore-based rival Grab, which is listed on the Nasdaq, late last week reported a US$572 million loss for the three months through June, though that marked a narrowing of 29% from US$801 million in red ink in the same period last year. Revenue, meanwhile, rose to a record US$321 million, a gain of 79%, reflecting strong demand for its delivery and ride-hailing businesses.
With the global economy facing uncertainties including the war in Ukraine and surging food and energy prices, Soelistyo said “we will remain watchful on how geopolitical tensions, rising fuel costs and inflation and higher interest rates will unfold.”
GoTo’s shares rose 1.25% on Tuesday to 324 Indonesian rupiah, below its initial public offering price of 338 Indonesian rupiah. The earnings were reported after the stock market closed. The company’s market capitalisation stood at 383 trillion Indonesian rupiah based on Tuesday’s close.