The following is a summary of the PT GoTo Gojek Tokopedia Tbk (GTOFF) Q1 2024 Earnings Call Transcript:
Financial Performance:
PT GoTo Gojek Tokopedia Tbk recorded pro forma core GTV increase by 32% and gross revenue increase by 80% in Q1 2024.
The company experienced slight negative pro forma adjusted EBITDA of IDR102 billion due to increased FinTech investments and seasonal slowness with year-on-year adjusted EBITDA losses decreasing by 89%.
The closure of a deal with TikTok resulted in an extra income from e-commerce service fees of approximately IDR110 billion.
GoTo's financial sector reported a year-on-year increase in core GTV and gross revenue of 40% and 57% respectively, with their loan book tripling year-on-year to IDR2.7 trillion.
Recurring cash corporate costs saw a decrease of 30% Year-on-year and 8% sequentially in Q1 2024.
The company reported an EBITDA positive of IDR166 billion for On-Demand services, while reporting an EBITDA loss of IDR248 billion for its Fintech division which marked a 52% reduction YoY.
As of March 31, 2024, the company held IDR23 trillion in cash, cash equivalents, and short-term time deposits.
Business Progress:
The deal with TikTok made the company's e-commerce segment cash-flow positive and increased GoPay's penetration.
The company also launched a partnership with a local taxi firm in Singapore for its On-Demand Services division.
The company plans to enhance their market presence by increasing user base, expanding wallet share among existing users, reducing operating costs and strengthening partnerships.
PT GoTo Gojek Tokopedia Tbk announced a divestment of its delivery and fulfillment businesses and part of GoTo Logistics that support Tokopedia.
An ongoing integration of GoTo Financial and TikTok Shop is in process.
The board of directors and commissioners approved a US$200 million share repurchase program.
The company refuses to provide quarter-by-quarter guidance, focusing on long-term gains and financial discipline.
Through a collaboration with CDG, GoTo enhanced it's supply chain, viewing this as a crucial component for their future growth.
GoTo reports potential for substantial growth in different business sectors like e-commerce, On-Demand Services (ODS), and FinTech.
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