Jakarta. GoTo Gojek Tokopedia (GOTO), Indonesia's largest digital ecosystem, announced its financial and operational performance for the first quarter of 2024 (1Q-2024). The company showed significant improvement in its losses and is on course to achieve break-even by the end of the year.

The gross transaction value (GTV) for GoTo Group increased by 20 percent, reaching Rp 116.5 trillion ($7.17 billion), while the Group's core GTV surged by 32 percent year-on-year (YoY) to Rp 54.6 trillion.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 1Q-2024 amounted to a loss of Rp102 billion, improving compared to the same period last year when the loss was Rp 898 billion.

"This indicates a positive trend towards achieving the adjusted EBITDA breakeven performance guideline for the full 2024 fiscal year," Patrick Walujo, CEO of GoTo Group, said in his statement on Tuesday.

Patrick attributed this strong performance to user growth, the buy now pay later (BNPL) business in e-commerce, and the accelerated integration and payment adoption on TikTok.

"In 2023, we laid a strong foundation and defined a growth strategy by expanding our user base, deepening the ecosystem's user wallet share, reducing operational costs, and strengthening partnerships with TikTok," said Patrick Walujo in his statement on Tuesday.

Gross revenue for the first quarter of 2024 increased by 18 percent compared to the same period last year, amounting to Rp 4.2 trillion.

Incentive and product marketing expenses, as well as routine cash expenses, decreased by 31 percent and 25 percent YoY, respectively.

The core financial technology GTV in 1Q2024 grew by 40 percent year on year to Rp 48.4 trillion, along with a 43 percent increase in loans compared to the previous quarter, and more than tripled year on year to Rp 2.7 trillion. This segment is on track to achieve adjusted EBITDA profitability by the end of 2025.

On Jan. 31,  GoTo completed its agreement with TikTok, including the integration of Tokopedia and TikTok's e-commerce business under the entity of PT Tokopedia. Effective February 1, Tokopedia has been divested from the GoTo Group.

The GoTo Group has also signed a conditional sales and purchase agreement to divest its ownership of the Tokopedia-supported delivery and fulfillment business under GoTo Logistics. Upon completion of this transaction, GoTo Logistics will also be divested from the GoTo Group. This transaction will not affect GoSend, the consumer-to-consumer delivery service currently available through the Gojek application, which is part of the On-Demand Services business segment of the GoTo Group.