GoTo management Gojek Tokopedia ($GOTO) has just announced an adjusted EBITDA target of around 1.4-1.6 trillion rupiah for 2025. From this figure, the ‘On-Demand Services (ODS)’ segment is projected to contribute at least 1.1 trillion rupiah, while the contribution from the ‘Fintech’ sector is expected to reach a minimum of 350 billion rupiah.
This announcement comes after GOTO recorded a positive adjusted EBITDA of 399 billion rupiah in Q4 2024, compared to 89 billion rupiah in Q4 2023 and 137 billion rupiah in Q3 2024. With these results, the overall positive EBITDA for 2024 reached 386 billion rupiah, exceeding the company’s guidance which set breakeven.
Progress Projected to Continue in 2025
The company’s progress does not seem to stop. The ‘ODS’ segment recorded adjusted EBITDA of 267 billion rupiah in Q4 2024, experiencing growth of 12% YoY and 71% QoQ. This figure is the highest level ever achieved, thanks to revenue growth and improved margins.
GOTO’s management is optimistic that the ‘ODS’ segment will continue to grow in line with the industry’s growth which is projected to be in the low-mid teens range by 2025. They continue to innovate with technology, such as efficient special delivery fleet programs, which allow them to offer competitive prices to consumers, while boosting advertising revenue, which jumped 92% YoY in Q4 2024.
On the ‘Fintech’ segment side, the amount of financing again was recorded to increase to 5.2 trillion rupiah</strong by the end of 2024 (compared to 4.3 trillion rupiah in 9M 2024 and 1.9 trillion rupiah in 2023). Management targets this financing to continue to increase to more than 8 trillion rupiah by the end of 2025.
Corporate Action Update
Regarding the share buyback, GOTO’s management revealed that they have repurchased 23.6 billion shares with a value of around 91 million US dollars, or around 1.5 trillion rupiah as of the end of February 2025. This shows an average purchase price of around ~64 rupiah per share. Just look, GOTO allocates a buyback budget of 200 million US dollars!
Then, regarding the merger plan with Grab Holdings Ltd. (Nasdaq: GRAB), the management chose not to comment and preferred to focus on strategy execution, considering the still large market potential.
Finally, they explained that holiday allowances (THR) will be given to productive and high-performing partners. The company also plans to manage additional costs in the planning that has been made.
With the performance run rate maintained in Q4 2024, the adjusted EBITDA target of 1.4-1.6 trillion rupiah in 2025 seems to be not just a dream. However, the challenges of purchasing power and increased competition must still be watched out. Potential upside could also arise from improved operational cost efficiency, which will support margin growth. Hopefully, they can catch up with this target!