GOTO’s gross revenue increased by 53%, GTV grew 46% in 1Q22

Jakarta (ANTARA) – PT GoTo Gojek Tokopedia Tbk (IDX: GOTO, "GoTo Group” or the "Company”), the largest digital ecosystem in Indonesia, today announced its financial results for 1Q22 and FY 2021.

Andre Soelistyo, GoTo Group CEO, said: "We can look back on 2021 with pride in our resilience and excellence in execution, demonstrated by strong growth in each of our businesses and overall margin improvements. The formation of GoTo, through the combination of Gojek and Tokopedia, puts us in an even better position to serve customers. As we deepen integration of the businesses, we have been able to enhance operating efficiencies, create multiple cross-platform opportunities and invest for the future growth and profitability of GoTo.

"Our operating companies have performed strongly, and gained more benefits on the back of synergies in our ecosystem. We have focused on initiatives that encourage usage between each of our market-leading platforms. For example, we have made GoPay the majority e-money provider on Tokopedia, introduced status matching of loyalty programs on Gojek and Tokopedia, and consolidated our rewards currency, Gopay Coins, across the ecosystem. As a result, we saw 37% year-on-year growth among pro forma annual transacting users who transacted on both Gojek and Tokopedia in 2021. These users tend to spend more and are more loyal than users of just one platform.

"Throughout 2022 we will build on these initiatives and continue to leverage the competitive advantages that come from our unique ecosystem as we continue to capitalize on the exciting growth opportunity presented by Indonesia and the Southeast Asia region. As markets open up further, it will be especially important to continually improve and integrate our core products to ensure we are meeting the needs of our growing customer base across on-demand, e-commerce and financial technology services.”

Jacky Lo, GoTo Group CFO, said: "We are pleased with the solid growth momentum we achieved in 2021 despite headwinds caused by the Covid surge. We finished 2021 with strong year-on-year growth of 40% and 44% for pro forma GTV and gross revenue respectively. Results for the first quarter of 2022 were even stronger, with quarterly year-on-year growth of 46% and 53% for pro forma GTV and gross revenue, providing a promising indication of our future prospects.

"We expect to reap significant additional benefits as we integrate Gojek, Tokopedia and GoTo Financial further and have been investing accordingly in cross-platform integration since May 2021. In the first quarter of 2022, we also focused on optimizing our incentive spend and operating expenses, and have already seen significant results that will act as a strong foundation as we work towards improving our margins. Contribution margin and adjusted EBITDA margin improved by 24 and 14 percentage points, respectively, between the fourth quarter of 2021 and the first quarter of 2022.

"Moving forward, we will continue to take a robust and thorough approach to cost management, supporting our growth and investment objectives and allowing us to establish a clear path to profitability and drive further value for our various stakeholders.”

● GTV4 grew 46% year on year to Rp140.0 trillion.

● Gross revenue5 increased by 53% year on year to Rp5.2 trillion, representing an improvement in take rate from 3.5% to 3.7% due to better monetization in e-commerce and on-demand segments.

● LTM annual transacting users grew 29% year on year to 65 million, with average spending per user increasing by 18% year on year over the same period

● Total orders grew by 41% year on year to over 656 million.

● In 1Q22, adjusted EBITDA6 losses narrowed by 14 percentage points to Rp5.4 trillion from Rp6.2 trillion in 4Q21. This compares with a loss of Rp1.9 trillion in 1Q21, a figure that reflects planned capital conservation ahead of the Gojek-Tokopedia transaction to allow for cross-platform investment, and the significant impact of COVID restrictions.

● GoTo formed through the combination of Gojek and Tokopedia creating multiple cross-platform efficiencies.

● 37% year-on-year growth among annual transacting users who transacted on both Gojek and Tokopedia.

● GTV grew 40% year on year to Rp461.6 trillion.

● Gross revenue grew 44% year-on-year to Rp17.0 trillion.

● Adjusted EBITDA loss was Rp16.2 trillion, compared with a loss of Rp13.0 trillion in FY 2020.

● GoTo launched the initial wave of cross-pollination efforts. FY 2021 ATU cross platform users increased by 37% YoY to 11.6 million. This overlap represents 21% of Gojek and Tokopedia ATUs, with room to grow as the company continues to focus on cross-acquisition of users between Gojek, Tokopedia and GoTo Financial.

● Introduced GoPay as a payment option on Tokopedia - GoPay usage on Tokopedia has grown to 76% of e-money transaction value1 in 4Q21, and 93% by 1Q22, amounting to Rp6.4 trillion and Rp7.6 trillion, respectively.

● Users who used GoPay to pay for mobility or food delivery services increased from 43% in 1Q21 to 55% in 1Q22.

● Implemented GoPay Coins, a unified rewards program that allows users to earn points that can be spent on our platforms, increasing customer retention and encouraging additional transactions, as well as recycling promotion dollars within the ecosystem.

● Status matching for loyalty programs across platforms introduced to create pride and awareness across platforms.

● Deepened fleet integration between Tokopedia and our dedicated on-demand logistics fleet from Gojek to deepen on-demand delivery penetration, drive cost per kilometer efficiencies, and enhance Tokopedia's hyperlocal strategy.

● Despite COVID-related challenges, on-demand services in 1Q22 posted GTV of Rp14.9 trillion, up 44% year on year. FY 2021 GTV was Rp50.3 trillion, up 25% year on year, driven by strong performance in food and logistics. Further improvement is expected as transport returns to normal across Indonesia.

● The easing of COVID restrictions resulted in 1Q22 mobility GTV growth of 73% year on year. Take rate for on-demand was up around 180 basis points in 1Q22, compared with 1Q21.

● Our 1Q22 gross revenue for on-demand services was Rp3.1 trillion, up 58% year on year. This is primarily attributed to synergies resulting from collaboration with Tokopedia, the increase in B2B2C logistics business volume, merchant commissions bundled with value-added services, and improved operating conditions. FY 2021 gross revenue was Rp10.3 trillion, up 37% year on year.

● Gojek further expanded its regional offerings in FY 2021, launching GoCar in Ho Chi Minh City, Vietnam, in October 2021. Premium and XL transport offerings were launched in Singapore, where large-scale campaigns were also carried out, including free vaccine rides, which increased brand awareness and order volumes, while supporting the Company's social mission.

● Tokopedia saw continued growth with a 10% year-on-year increase in transaction frequency per user in 1Q22, with GTV amounting to Rp65.1 trillion, up 28% year on year over the same period. This was driven by new user acquisition, cross pollinated users and growth in existing users' order frequency.

● E-commerce gross revenue was Rp1.9 trillion in 1Q22, up 53% year on year. This was primarily driven by logistics and digital goods, as well as a continuous improvement in our ad targeting engine as we utilize more platform data and machine learning to personalize ad exposure, and improve search relevance and sales conversion. FY 2021 gross revenue was Rp6.3 trillion, up 81% year on year.

● Advertising revenue continued to grow at a healthy rate of 62% year on year in 1Q22. The combination of Gojek's fleet and Tokopedia's asset base has improved our overall on-demand logistics and fulfillment capabilities, making orders more hyperlocal, providing convenience for consumers and equipping merchants with seamless solutions to serve their customers.

● In FY 2021 and 1Q22, Tokopedia was the most visited e-commerce platform in Indonesia with recorded total monthly traffic of 141 million visits and 150 million visits respectively, according to Similarweb7.

● There was strong growth in long-tail categories, such as FMCG and Mom and Baby, which grew more than 50% on an orders basis in 1Q22 year on year.

● As a whole, the e-commerce take rate has improved from 2.5% in 1Q 2021 to 2.9% in 1Q22.

● GoTo Financial's 1Q22 GTV was Rp77.5 trillion, representing 91% year-on-year growth. FY 2021 GTV was Rp214.9 trillion, an increase of 80% year on year.

● More users are using GoPay to pay for products and services in the GoTo ecosystem. Notably, the number of users who used GoPay to pay for mobility or food delivery services increased from 43% in 1Q21 to 55% in 1Q22.

● 1Q22 gross revenue was Rp358 billion, up 47% year on year and FY 2021 gross revenue was Rp1.1 trillion, up 12% year on year.

● New product initiatives included:

● GoPay integration on Tokopedia, which quickly gained a majority market share, amounting to 93% of Tokopedia's total e-money transaction value in 1Q22.

● GoPayLater Akhir Bulan launched on Tokopedia - a significant expansion for GoPayLater acceptance.

● Integration of Bank Jago on the Gojek application, allowing users to open a Jago account within the Gojek App.

● Loyalty currency was unified across the ecosystem with the launch of GoPay Coins. Coins can now be earned and redeemed across platforms and all users are eligible for status matching ensuring loyalty status consistency across all GoTo products.

● GoTo Financial was awarded an e-wallet license in December 2021, which will ultimately give GoPay users a simpler payment option selection.