Company Reports

GoTo operates an on-demand service as its core business while also providing e-commerce on its platform, and competes by offering subsidies to entice consumers to make purchases on its platform. After years of subsidies have helped grow the user base to 64 million users, the company is still incurring heavy losses and is now shifting its focus on profitability by reducing subsidies. However, we believe this strategy shift creates significant uncertainty relating to GoTo’s growth trajectory in the long term, as gross transactional volume growth decelerated significantly in 2023, which is a concern. GoTo reported a 255% operating margin loss in 2023, and while margins should improve this year after the subsidy reduction, we expect the reductions to cause e-commerce GTV to post only flat growth year on year compared with an 18% increase last year. Given the rate of deceleration, we have reservations about whether GoTo can balance both growth and profitability if it returns to GTV expansion. The massive deceleration questions whether GoTo users are deeply reliant on the platform and implies a low switching cost for its business.

GoTo operates an on-demand service as its core business while also providing e-commerce on its platform, and competes by offering subsidies to entice consumers to make purchases on its platform. After years of subsidies have helped grow the user base to 64 million users, the company is still incurring heavy losses and is now shifting its focus on profitability by reducing subsidies. However, we believe this strategy shift creates significant uncertainty relating to GoTo’s growth trajectory in the long term, as gross transactional volume growth decelerated significantly in 2023, which is a concern. GoTo reported a 255% operating margin loss in 2023, and while margins should improve this year after the subsidy reduction, we expect the reductions to cause e-commerce GTV to post only flat growth year on year compared with an 18% increase last year. Given the rate of deceleration, we have reservations about whether GoTo can balance both growth and profitability if it returns to GTV expansion. The massive deceleration questions whether GoTo users are deeply reliant on the platform and implies a low switching cost for its business.

Goto's second-quarter 2026 revenue grew 31% year on year and posted net profitability for the second time, driven by its financial technology business.

Goto's first-quarter 2026 revenue grew 26% year on year and posted net profitability for the first time in company history, driven by the expansion of its financial-technology business.

GoTo operates an on-demand service as its core business while also providing e-commerce on its platform, and competes by offering subsidies to entice consumers to make purchases on its platform. After years of subsidies have helped grow the user base to 64 million users, the company is still incurring heavy losses and is now shifting its focus on profitability by reducing subsidies. However, we believe this strategy shift creates significant uncertainty relating to GoTo’s growth trajectory in the long term, as gross transactional volume growth decelerated significantly in 2023, which is a concern. GoTo reported a 255% operating margin loss in 2023, and while margins should improve this year after the subsidy reduction, we expect the reductions to cause e-commerce GTV to post only flat growth year on year compared with an 18% increase last year. Given the rate of deceleration, we have reservations about whether GoTo can balance both growth and profitability if it returns to GTV expansion. The massive deceleration questions whether GoTo users are deeply reliant on the platform and implies a low switching cost for its business.

GoTo's fourth-quarter 2025 revenue grew 19% year on year, driven mainly by its financial technology business, but operating loss margin widened sequentially to 3.1%.

Goto's third-quarter 2025 revenue grew 21% year on year, and its margin loss narrowed as operating expenses declined as a percentage of revenue.

GoTo's second-quarter 2025 revenue grew 18% year on year and achieved positive recurring operating profit for the first time, driven by 90% revenue growth in its financial technology business.

GoTo operates an on-demand service as its core business while also providing e-commerce on its platform, and competes by offering subsidies to entice consumers to make purchases on its platform. After years of subsidies have helped grow the user base to 64 million users, the company is still incurring heavy losses and is now shifting its focus on profitability by reducing subsidies. However, we believe this strategy shift creates significant uncertainty relating to GoTo’s growth trajectory in the long term as gross transactional volume growth decelerated significantly in 2023, which is a concern. GoTo reported a 255% operating margin loss in 2023, and while margins should improve this year after the subsidy reduction, we expect the reductions to cause e-commerce GTV to post only flat growth year on year compared with an 18% increase last year. Given the rate of deceleration, we have reservations about whether GoTo can balance both growth and profitability if it returns to GTV expansion. The massive deceleration questions whether GoTo users are deeply reliant on the platform and implies a low switching cost for its business.

Goto's first-quarter revenue grew 4% year on year, while operating losses narrowed by IDR 750 billion to IDR 193 billion as the company continued to cut marketing and incentive costs.

GoTo fourth-quarter 2024 revenue declined 1% year on year to IDR 4.2 trillion, but operating losses narrowed by more than 3,000 basis points as the company continues to make profitability its priority.

GoTo operates an on-demand service as its core business while also providing e-commerce on its platform, and competes by offering subsidies to entice consumers to make purchases on its platform. After years of subsidies have helped grow the user base to 64 million users, the company is still incurring heavy losses and is now shifting its focus on profitability by reducing subsidies. However, we believe this strategy shift creates significant uncertainty relating to GoTo’s growth trajectory in the long term as gross transactional volume growth decelerated significantly in 2023, which is a concern. GoTo reported a 255% operating margin loss in 2023, and while margins should improve this year after the subsidy reduction, we expect the reductions to cause e-commerce GTV to post only flat growth year on year compared with an 18% increase last year. Given the rate of deceleration, we have reservations about whether GoTo can balance both growth and profitability if it returns to GTV expansion. The massive deceleration questions whether GoTo users are deeply reliant on the platform and implies a low switching cost for its business.

We increased our fair value estimate for GoTo by 10% to IDR 73 per share from IDR 66 after its third-quarter results showed loss improvement and modest gross transactional value growth. Overall, GoTo’s third-quarter revenue grew 8% year on year while operating loss margin narrowed by 1320 basis points to 8.3%, sequentially. GoTo’s on-demand services GTV grew 21% year on year while revenue grew 108% as it significantly reduced the subsidies given to customers for the third consecutive quarter in its continued effort to focus on profitability.

GoTo operates an on-demand service as its core business while also providing e-commerce on its platform, and competes by offering subsidies to entice consumers to make purchases on its platform. After years of subsidies have helped grow the user base to 64 million users, the company is still incurring heavy losses and is now shifting its focus on profitability by reducing subsidies. However, we believe this strategy shift creates significant uncertainty relating to GoTo’s growth trajectory in the long term as gross transactional volume growth decelerated significantly in 2023, which is a concern. GoTo reported a 255% operating margin loss in 2023, and while margins should improve this year after the subsidy reduction, we expect the reductions to cause e-commerce GTV to post only flat growth year on year compared with an 18% increase last year. Given the rate of deceleration, we have reservations about whether GoTo can balance both growth and profitability if it returns to GTV expansion. The massive deceleration questions whether GoTo users are deeply reliant on the platform and implies a low switching cost for its business.

We maintain our fair value estimate for GoTo at IDR 66 after the company reported second-quarter revenue of IDR 3.66 trillion while its operating loss margin narrowed by 3600 basis points. This indicates the company is no longer incurring heavy cash burn after it sold its e-commerce business, Tokopedia. This quarter is the first time GoTo has reported earnings under its new business structure without Tokopedia, and its on-demand service has become the main focus for investors. ODS' gross transactional volume increased 17% year on year, an improvement and reversal from the previous six quarters of year-on-year decline. ODS operating margin improved only slightly by 20 basis points sequentially. Still, together with its GTV growth, we are encouraged by these positive signs as we believe GoTo is now in a better position to focus its resources and execution on a single business without the distraction of Tokopedia’s heavy cash burn.

We maintain our fair value estimate for GoTo of IDR 66 after it reported first-quarter 2024 revenue of IDR 4.1 trillion, compared with our estimate of IDR 2.6 trillion. The beat was due to a change in GoTo’s revenue recognition using the principal rather than agent model, meaning that revenue is recognized more on a gross basis rather than the previously used net. Recurring operating losses narrowed to IDR 942 billion from IDR 4.04 trillion a year ago following the sale of Tokopedia, as the e-commerce unit had suffered significant losses. In the future, we expect growth of the on-demand and financial services businesses to dictate GoTo’s valuation.

GoTo operates an on-demand service as its core business while also providing e-commerce on its platform, and competes by offering subsidies to entice consumers to make purchases on its platform. After years of subsidies have helped grow the user base to 64 million users, the company is still incurring heavy losses and is now shifting its focus on profitability by reducing subsidies. However, we believe this strategy shift creates significant uncertainty relating to GoTo’s growth trajectory in the long term as gross transactional volume growth decelerated significantly in 2023, which is a concern. GoTo reported a 255% operating margin loss in 2023, and while margins should improve this year after the subsidy reduction, we expect the reductions to cause e-commerce GTV to post only flat growth year on year compared with an 18% increase last year. Given the rate of deceleration, we have reservations about whether GoTo can balance both growth and profitability if it returns to GTV expansion. The massive deceleration questions whether GoTo users are deeply reliant on the platform and implies a low switching cost for its business.

We lower our fair value estimate for GoTo by 15% to IDR 66 per share although the company reported fourth-quarter revenue of IDR 4.3 trillion, which was 3.5% better than our estimate, as risks remain as to its long-term profitability. Despite the deconsolidation of its e-commerce business Tokopedia, there is still significant long-term uncertainty and much of GoTo's valuation hinges on whether it can successfully increase the monetization of the rest of its businesses on its platform. Gross transaction value, or GTV, declined by 10% this quarter for the on-demand segment, worse than our estimate of a 5% decline. The company implied that it could recover to midteens growth in 2024 for the unit, which is now GoTo’s core business, but we are skeptical and assume mid-single-digit growth, given our doubts as to how it can reaccelerate growth while maintaining profitability. After lowering our growth assumption, we believe the possibility remains for further revision on the expense side, given that the market also expects significant cost-cutting, but execution has been a challenge. GoTo provided guidance that it will reach adjusted EBITDA breakeven in 2024 but gave no specific timeline. We believe there are still long-term risks and would elect less risky companies such as Grab for investors wanting exposure to Southeast Asia.

GoTo operates an on-demand service as its core business while also providing e-commerce on its platform, and competes by offering subsidies to entice consumers to make purchases on its platform. After years of subsidies have helped grow the user base to 64 million users, the company is still incurring heavy losses and is now shifting its focus on profitability by reducing subsidies. However, we believe this strategy shift creates significant uncertainty relating to GoTo’s growth trajectory in the long term as gross transactional volume, or GTV, growth is likely to decelerate significantly in 2023, which is a concern. GoTo reported a 255% operating margin loss in 2023, and while margins should improve this year after the subsidy reduction, we expect the reductions to cause e-commerce GTV to post only flat growth year on year compared with an 18% increase last year. Given the rate of deceleration, we have reservations about whether GoTo can balance both growth and profitability if it returns to GTV expansion. The massive deceleration questions whether GoTo users are deeply reliant on the platform and implies a low switching cost for its business.

GoTo operates a low-cost strategy in its e-commerce and on-demand businesses, and competes by offering subsidies to entice consumers to make purchases on its platform. After years of subsidies have helped grow the user base to 64 million users, the company is still incurring heavy losses and is now shifting its focus on profitability by reducing subsidies. However, we believe this strategy shift creates significant uncertainty relating to GoTo’s growth trajectory in the long term as gross transactional volume, or GTV, growth is likely to decelerate significantly in 2023, which is a concern. GoTo reported a 255% operating margin loss in 2023, and while margins should improve this year after the subsidy reduction, we expect the reductions to cause e-commerce GTV to post only flat growth year on year compared with an 18% increase last year. Given the rate of deceleration, we have reservations about whether GoTo can balance both growth and profitability if it returns to GTV expansion. The massive deceleration questions whether GoTo users are deeply reliant on the platform and implies a low switching cost for its business.