GoTo said on Tuesday that it had managed to narrow its losses in the first half of the year as the tech giant’s cost-cutting measures helped to improve its bottom line.
The Indonesian ride-hailing and e-commerce firm reported that it nearly halved its losses to 7.2 trillion rupiah ($470 million) in the first six months from a year earlier. GoTo’s underlying loss was 2.8 trillion rupiah in the same period, a reduction of 72% year on year.
GoTo Group CEO Patrick Walujo said the company is still on track to reach positive adjusted Ebitda at the end of this year, adding that breaking even is not the end goal of the company and it aims to have sustainable and profitable growth.
“We intend to expand our consumer base, without the use of unsustainable incentives, among budget consumers who prioritize value for money,” Walujo said in a statement.
Walujo took over from Andre Soelistyo as GoTo’s CEO in June, Walujo is the son-in-law of billionaire Theodore Rachmat and founder of private equity firm Northstar Group, which was the first investor in Gojek.
GoTo said its revenue also grew to 11.8 trillion rupiah ($771 million) in the first half, a 10% increase from the same period a year earlier. Its ride-hailing app Gojek continues to be the largest contributor to the company’s top line, contributing 5.8 trillion rupiah, followed by e-commerce with 4.4 trillion rupiah, logistics with 1.1 trillion rupiah, and 823 billion rupiah from its financial technology unit.
The company said the better-than-expected results have enabled it to cut its projected losses for the full year. Goto now expects an adjusted Ebitda loss of between 3.8 and 4.5 trillion rupiah, compared to its previous projection of 4.6 to 5.3 trillion.
GoTo, which had raised $1.1 billion from its IPO last April, had previously stated that its adjusted Ebitda would turn positive in the fourth quarter of this year.