Subscribe to Updates

    Get the latest creative news from CRYPTO NOUNCE.

    What's Hot

    First Republic (FRC) Shares Jump 15% as Regional Bank Stock Rebounds

    March 27, 2023

    ‘sell the news’ moment nears after crypto-leading 20% weekly gain

    March 27, 2023

    Krypto Miners Club Releases Revolutionary NFT Collection Backed by BTC Mining on Polygon Blockchain

    March 27, 2023
    Facebook Twitter Instagram
    Facebook Twitter Instagram Vimeo
    Cryptonounce.com
    Contact
    • Business
      • Deals
      • investors
      • IPO
      • Startups
      • Wall Street
    • Markets
      • Bonds
      • Commodities & Futures
      • Currencies
      • Funds & ETFs
      • Stocks
    • Crypto
      • Alticoins News
      • Binance News
      • Bitcoins News
      • Blockchain News
      • Ethereum News
      • Token Sales News
      • XRP News
    • Technology
      • Artificial Intelligence
      • Big Data
      • Cloud Computing
      • Cybersecurity
      • Gaming
      • Internet of Things
      • Mobile
      • Social Media
      • Transportation
      • VR & AR
    • FinTech
    • Personal finance
    • Grides
      • Crypto
      • FinTech
      • Investing
      • Personal Finance Guides
      • Techonology
    • Tools
      • Coins
      • ICO List
      • Organigations
      • Events
    Cryptonounce.com
    Home » Indonesia’s GoTo reports wider nine-month loss
    Deals

    Indonesia’s GoTo reports wider nine-month loss

    AdmincryptBy AdmincryptNovember 22, 2022No Comments4 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Motorcyclists travel past a billboard advertising GoTo’s initial public offering in Jakarta, Indonesia, on Friday, April 8, 2022. GoTo, formed through the merger of Gojek with e-commerce pioneer Tokopedia, raised $1.1 billion in one of the worlds biggest stock debuts this year and is slated to list in Jakarta April 11.

    Dimas Ardian | Bloomberg | Getty Images

    Indonesia’s GoTo Group reported its nine-month accumulated losses surged from a year ago, even as quarterly losses shrank as the company cut costs.

    GoTo accumulated a loss of 20.32 trillion rupiah ($1.29 billion) between January and September, far more than the 11.58 trillion rupiah loss reported a year ago.

    related investing news

    Salesforce's cost-cutting plan is a much-needed move for an economic downturn

    CNBC Investing Club

    Shares of GoTo were down 6% Tuesday morning and down 48% since its listing.

    For the third quarter, GoTo reported an adjusted EBITDA loss of 3.7 trillion rupiah (about $235 million), about 11% smaller than the 4.2 trillion rupiah adjusted EBITDA loss posted a year ago. That’s also 10% narrower than the 4.1 trillion rupiah EBITDA loss reported for the second quarter and marks the third consecutive quarter of shrinking losses. EBITDA is a measure of profitability that shows earnings before interest, taxes, depreciation and amortization.

    “As we have mentioned in previous quarters, our strategy is built around three core areas: firstly, focusing on sustainable, high-quality growth; secondly, accelerating our path to profitability; and thirdly, product-led growth bolstered by our ecosystem synergies,” said Andre Soelistyo, GoTo Group CEO, during the earnings call Monday night.

    “We have made significant progress on all three fronts, with a particularly strong performance on accelerating our path to profitability,” he added.

    GoTo Group is the result of a merger between two of Indonesia’s largest tech companies — ride-hailing, food delivery and payments giant Gojek and e-commerce marketplace Tokopedia. The group went public with a $1.1 billion listing in April.

    Layoffs aren't the only way to optimize costs, DBS Bank says of GoTo

    GoTo said on-demand services, including ride hailing and food delivery, achieved positive contribution margin in September, “several months ahead of schedule.” Contribution margin measures profitability by showing the aggregate amount of revenue available after variable costs.

    GoTo said return to office and back-to-school demand helped drive that improvement in mobility services.

    “The improved margins have not come at the expense of top line growth,” said Soelistyo.

    “Throughout the third quarter, we reduced incentives, eliminated promotional spend on cohorts of unprofitable users, further reduced product marketing spend and continued to develop a program of structural cost savings as we equip our business for the road that lies ahead,” said Jacky Lo, GoTo Group CFO.

    More cost cuts expected

    Global macro uncertainties from rising inflation and interest rates have forced tech companies, including GoTo, Grab and Sea Limited, to double down on trimming costs.

    Read more about tech and crypto from CNBC Pro

    During the earnings call Monday night, the GoTo management promised further cost cuts and predicted a “significant part” of the savings would be realized in the first quarter.

    The company also reduced average monthly cash burn by 13% in the third quarter to 1.3 trillion rupiah compared with 1.5 trillion rupiah in the second quarter, according to Soelistyo.

    Last Friday, GoTo said it would reduce its headcount by 12% — or about 1,300 jobs. Other companies based in Southeast Asia, including Sea Limited and Foodpanda, have also laid off workers this year, according to media reports.

    “As a result of this, as well as additional people-related cost reduction measures, we expect to save between 915 billion rupiah and 965 billion rupiah annually, which will result in substantial improvement to opex next year,” said Lo.

    With these cost saving measures, GoTo expects it can accelerate group adjusted EBITDA breakeven by three to four quarters, roughly 12 to 15 months, following contribution margin breakeven, said Soelistyo during the call.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
    Previous ArticleRussian war crimes in Ukraine include kidnapping, torture and murder, the US claims 
    Next Article Best Buy (BBY) earnings Q3 2023
    Admincrypt
    • Website

    Related Posts

    Ouster (OUST) Q4 2022 results

    March 23, 2023

    Darden Restaurants (DRI) Q3 2023 earnings

    March 23, 2023

    Ford’s EV business lost $2 billion in 2022, offset by fleet and legacy

    March 23, 2023

    Tencent’s online ads revenue grows for the first time since 2021

    March 23, 2023

    Leave A Reply Cancel Reply

    Our Picks
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Don't Miss
    Editor's Choice

    First Republic (FRC) Shares Jump 15% as Regional Bank Stock Rebounds

    By AdmincryptMarch 27, 20230

    Since the collapse of Silicon Valley Bank, several industry stakeholders have been doing all they…

    ‘sell the news’ moment nears after crypto-leading 20% weekly gain

    March 27, 2023

    Krypto Miners Club Releases Revolutionary NFT Collection Backed by BTC Mining on Polygon Blockchain

    March 27, 2023

    Deep Agency shows the perils of applying AI to the fashion industry

    March 27, 2023

    Subscribe to Updates

    Get the latest creative news from CRYPTO NOUNCE.

    NEWS
    • Business
    • Crypto
    • Blockchain
    • Markets
    • Technology
    FEATURED SECTIONS
    • Coins
    • ICO List
    • Organigations
    • Events
    • Grides
    FEATURED LINKS
    • Story of the day
    • Videos
    • Infographics
    CONNECT WITH US
    • Facebook
    • Twitter
    • Telegram
    • LinkedIn
    • Pinterest
    ABOUT US
    • Contact
    • Advertise
    • Sitemap
    Copyright © 2023 Cryptonounce All rights reserved. Cryptonounce.
    • Home
    • Buy Now

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Lost password?