FRESNOFORECLOSURE

Indonesian tech giant GoTo Group is touting a “record-breaking and profitable quarter” for the first quarter of 2025, reporting significant growth across key metrics.

However, a closer examination of the figures, particularly the company’s reliance on adjusted and pro forma numbers following recent business adjustments, suggests a more nuanced financial reality than the headline figures alone might imply.

GoTo’s latest earnings release highlights robust growth on a pro forma basis, which assumes the deconsolidation of Tokopedia and its related delivery and fulfilment businesses under GoTo Logistics since the start of 2024.

Also Read: Former top exec at FinVolution Simon Ho joins GoTo as CFO

Using this adjusted baseline, GoTo reported group core GTV (gross transaction value) growth of 54 per cent year-on-year (y-o-y) to Rp83.2 trillion (approx. US$5.15 billion) based on its reported cash holding exchange rate. Net revenue also saw a substantial increase of 37 per cent y-o-y to Rp4.2 trillion (approx. US$260 million) on this pro forma basis.

Crucially, the company reported a group adjusted EBITDA of Rp393 billion (approx. US$24.3 million) for Q1 2025, a significant improvement compared to a loss in the same period last year.

This metric, however, is a non-IFAS (Indonesian Financial Accounting Standards) financial measure that GoTo calculates by making numerous adjustments, including depreciation, interest, share-based compensation, and other items. These metrics may differ from those used by other companies and do not include all expenses necessary to run the business.

While the pro forma comparisons present a picture of accelerating growth, the release also includes “actual” figures, which offer a different perspective on the company’s performance relative to its historical reporting structure.

Comparing Actual Q1 2025 figures to Actual Q1 2024 figures shows significantly slower growth:

• Group GTV increased by 7 per cent y-o-y (actual) compared to 24 per cent (pro forma)
• Group net revenue increased by 4 per cent y-o-y (actual) compared to 37 per cent (pro forma)
• Group core GTV growth was 32 per cent y-o-y (actual) compared to 54 per cent (pro forma)

This disparity underscores that Goto’s impressive percentage gains are largely a function of the changed reporting structure and the removal of Tokopedia’s historical contribution from the comparison baseline rather than solely reflecting organic acceleration across the entire original group structure.

Delving into segment performance, both fintech and on-demand services reportedly reached record adjusted EBITDA.

Fintech recorded adjusted EBITDA of Rp47 billion (approx. US$2.9 million), a notable turnaround from a loss of Rp248 billion in Q1 2024. This segment saw a 90 per cent y-o-y increase in net revenue to Rp1.2 trillion (approx. US$74.3 million), driven by a loan book that expanded by 108 per cent y-o-y to Rp5.7 trillion (approx. US$352.8 million). The company states this growth is underpinned by a data-led risk management approach. GoTo is now providing disclosure on the delinquency schedule for its consumer loan book, though the actual data is not included in this release. Monthly transacting users for financial services increased by 30 per cent y-o-y.

On-demand services reached adjusted EBITDA of Rp314 billion (approx. US$19.4 million), an 89 per cent y-o-y increase. This segment’s net revenue grew by 33 per cent YoY to Rp3.0 trillion (approx. US$185.7 million). The segment’s GTV saw more modest growth of 17 per cent YoY to Rp15.7 trillion (approx. US$971.9 million).

Profitability gains were attributed to efficiency, refined product mix, and a focus on premium users.

The company reported a 156 per cent y-o-y surge in premium mobility orders, indicating success in extracting more value from high-spending users, potentially at the expense of broader mass-market penetration.

Advertising revenue also grew significantly, up 45 per cent y-o-y.

Despite the reported adjusted profitability, GoTo still recorded a net loss for the period of Rp276 billion (approx. US$17.1 million) on a pro forma basis, although this represents a 34 per cent narrowing y-o-y. The actual net loss was even larger at Rp367 billion (approx. US$22.7 million), a 61 per cent narrowing y-o-y.

The company reported a positive operating cash flow of Rp301 billion (approx. US$18.6 million). As of March 31, 2025, GoTo maintained a cash position of Rp21 trillion, or US$1.3 billion.

GoTo also continued its share repurchase programme, having bought back approximately US$99 million (Rp1.6 trillion) in shares as of the end of the quarter.

Also Read: What is next for Indonesian e-commerce scene after GoTo, TikTok Indonesia merger?

The firm maintains its full-year 2025 guidance for group adjusted EBITDA, expecting it to fall between Rp1.4 trillion and Rp1.6 trillion (approx. US$86.7 million to US$99.0 million). However, this outlook is explicitly subject to “increasing market competition, which is expected to continue,” as well as cost inflation, macroeconomic conditions, and other variables.

It is important to note that the financial results presented for Q1 2025 have been prepared by management and are unaudited and unreviewed. In addition, the use of non-IFAS measures means GoTo’s stated profitability figures may not be directly comparable to those of other companies.

In summary, while GoTo’s latest results, presented largely on a pro forma basis post-Tokopedia adjustments, demonstrate strong growth and a shift to adjusted profitability in its core segments, the actual y-o-y growth rates for the consolidated group are considerably more modest.

The reported “profitability” is based on a non-standard adjusted metric, and the figures remain unaudited, urging a cautious interpretation of the headlines.

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