Release Date: July 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- PT Goto Gojek Tokopedia Tbk (FRA:CK8, Financial) reported a 54% year-on-year increase in group core GTV, driven by a 20% increase in monthly transacting users.
- The company achieved significant growth in on-demand services, with GTV and completed orders in Indonesia growing by 18% and 24% year-on-year, respectively.
- The GoPay app has seen substantial growth, with app downloads surpassing 30 million and a declining cost per install.
- The company's financial technology business experienced a 65% year-on-year increase in core GTV, supported by growth in payments and lending services.
- PT Goto Gojek Tokopedia Tbk (FRA:CK8) has successfully reduced its adjusted EBITDA losses by 95% year-on-year and 53% quarter-on-quarter, demonstrating improved financial performance.
Negative Points
- The company is still facing intense competition across all segments, which could impact future growth and profitability.
- Despite improvements, the adjusted EBITDA remains negative, and the company needs to achieve positive adjusted EBITDA to meet its full-year breakeven target.
- There is a noted decline in profitability margins, particularly in the on-demand services segment, which could affect future financial performance.
- The share price has been stagnant, not reflecting the company's strong business performance, which may affect investor confidence.
- The company faces challenges in maintaining credit quality in its lending business amidst a deteriorating macroeconomic environment.
Q & A Highlights
Q: What is the plan to reach positive adjusted EBITDA in the second half of 2024, given the negative results in the first half?
A: Patrick Walujo, President Director & CEO, stated that the company remains committed to achieving group adjusted EBITDA breakeven for the full year. They have seen revenue growth and room for improvement in adjusted EBITDA for both on-demand services and Fintech segments. Historically, the second half of the year performs better due to seasonality, which supports their confidence in meeting targets.
Q: What is the growth outlook for GoTo Financial's consumer loan product, and are there plans for more innovative offerings?
A: Thomas Husted, Vice President Director, highlighted that the loan book has grown significantly, and they plan to continue this growth by expanding use cases for lending. They have rolled out BNPL on Gojek, Tokopedia, and TikTok, and are piloting a vehicle financing project with BFI. They also plan to revisit their merchant lending product in 2025.
Q: How does the partnership with TikTok affect GoTo's competitive position, especially with TikTok entering local services like food delivery?
A: Catherine Sutjahyo, Director, Head - Food and Indonesia Sales and Ops, explained that GoFood is partnering with TikTok in Indonesia for a pilot test of TikTok's local services delivery feature. This partnership allows TikTok users to order food from GoFood merchants, enhancing collaboration rather than competition.
Q: What is the management's plan to align the company's vision and mission with the MVS holders, given recent departures?
A: Wei Jye Lo, Group CFO, mentioned that he has been approved to become one of the MVS holders, ensuring alignment with the company's vision and mission. The current MVS shareholders have agreed to this transition, subject to regulatory processes.
Q: How does the competitive landscape in e-commerce and on-demand services affect the adjusted EBITDA target for 2024?
A: Patrick Walujo emphasized that competition remains intense, but the market in Indonesia continues to grow. The company is confident in the outlook for e-commerce managed by TikTok and aims to capture market opportunities in on-demand services by innovating and executing effectively.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
