Earnings call transcript: GoTo Q2 2025 shows strong growth in revenue and GTV

GoTo Gojek Tokopedia PT (GOTO) reported robust financial performance in its Q2 2025 earnings call, showcasing significant growth in key metrics such as net revenue and group core GTV. The results mark the third consecutive quarter of positive group EBITDA, highlighting the company’s continued operational success. According to InvestingPro data, the company maintains impressive gross profit margins of 54.07% and holds more cash than debt on its balance sheet, demonstrating financial strength despite a slight decline in stock price. GoTo remains optimistic about its future prospects, driven by strategic innovations and market expansion efforts.

Key Takeaways

• Group core gross transaction value (GTV) increased by 43% year-on-year.
• Net revenue rose by 23% year-on-year.
• Adjusted EBITDA reached 427 billion IDR (approximately $26.3 million).
• Positive adjusted operating cash flow was recorded at 313 billion IDR (around $19.3 million).
• The company maintains a strong cash position of 18.2 trillion IDR ($1.1 billion).

Company Performance

GoTo demonstrated strong financial performance in Q2 2025, with significant year-on-year growth in both GTV and net revenue. The company’s strategic focus on expanding its digital payments ecosystem and enhancing its technology capabilities has paid off, positioning it as a market leader in Indonesia’s rapidly growing digital market. Despite facing competition, GoTo has maintained its market share in on-demand services, bolstered by its robust ecosystem comprising Gojek, Tokopedia, and GoPay.

Financial Highlights

• Revenue: Increased 23% year-on-year.
• Group core GTV: Grew 43% year-on-year.
• Adjusted EBITDA: 427 billion IDR ($26.3 million).
• Operating cash flow: Positive at 313 billion IDR ($19.3 million).
• Cash position: 18.2 trillion IDR ($1.1 billion) as of June 30, 2025.

Market Reaction

Following the earnings release, GoTo’s stock price experienced a slight decline of 1.54%, closing at 65 IDR. The stock’s performance remains within its 52-week range, with a high of 89 IDR and a low of 50 IDR. InvestingPro analysis indicates the stock is currently undervalued, with a beta of 0.51 suggesting lower volatility compared to the market. This movement reflects cautious investor sentiment, potentially influenced by broader market trends and sector-specific challenges. InvestingPro subscribers have access to 10+ additional exclusive insights about GOTO’s valuation and market position.

Outlook & Guidance

Looking ahead, GoTo is targeting an 8 trillion IDR loan book by the end of the year and expects full-year adjusted EBITDA to range between 1.4 trillion and 1.6 trillion IDR. With a current ratio of 2.43 and strong liquidity position, as reported by InvestingPro, the company is well-positioned to continue investing in artificial intelligence and technology capabilities, focusing on product innovation for both mass and premium markets. Discover comprehensive analysis and detailed financial metrics for GOTO and 1,400+ other stocks with InvestingPro’s Research Reports.

Executive Commentary

Patrick Wallou Yeou, Group CEO, emphasized Indonesia’s potential as a digital market, stating, "Indonesia is one of the world’s largest yet still underpenetrated digital markets." He highlighted the importance of digital payments, describing them as "the current that powers the GoTo wild flywheel." Catherine Hindris Uchayo, Deputy CEO, underscored the company’s commitment to technology, stating, "We are a tech platform here. We believe our continuous investment in our tech stack plays a very important role."

Risks and Challenges

• Competitive pressures in the digital payments and on-demand services sectors.
• Macroeconomic factors affecting consumer spending and fintech adoption.
• Regulatory changes impacting digital market operations.
• Potential credit risk associated with the expansion of the loan book.
• Supply chain and operational challenges in scaling technology infrastructure.

Q&A

During the earnings call, analysts inquired about the macro environment’s impact on GoTo’s fintech and on-demand services. The company addressed its loan book growth strategy and credit risk management approach. Executives also detailed plans for continued ecosystem expansion, emphasizing partnerships with Telkomsel and TikTok to broaden market reach.

Full transcript - GoTo Gojek Tokopedia PT (GOTO) Q2 2025:

Joel Ellis, Head of Investor Relations, GoTo: Hello, everyone. This is Joel Ellis, Head of Investor Relations. Welcome to the PtGo2Gojekt Tocopedia TBK Second Quarter twenty twenty five Earnings Conference Call. Please be advised that today’s conference is being recorded. On today’s call, Patrick Wallou Yeou, President, Director and Group CEO and Simon Ho, Group CFO, will deliver prepared remarks.

Following their commentary, we will open up the call for questions and be joined by Katherine Hindris Uchayo, our Deputy CEO and Vice President Director Hans Patuo, our President of On Demand Services and Chief Operating Officer and Sudhanchul Rehedja, our President of Financial Technology Services. We would like to highlight that the information presented today has been prepared solely based on unaudited consolidated selected financial information for the three month period ended 06/30/2025. We have also submitted and published our consolidated financial statements as of and for the six months ended 06/30/2025 that have been reviewed. As a reminder, today’s discussion may contain forward looking statements about the company’s future business and financial performance as well as certain non Indonesian financial accounting standard measures as complements to the Indonesian financial accounting standard disclosures. Before using and or relying on these measurements and forward looking statements, please take note of our disclaimer and cautionary statements disclosed in our earnings presentation and press release.

During the earnings call, we will review the results of our operations and earnings presentation, which can be found on our website. Our reporting currency is the Indonesian rupiah, and we will denote the U. S. Dollar equivalent by applying an exchange rate of R16,233 to $1 based on the middle rates published by Bank Indonesia as of the June 2025. We will refer to pro form a figures to facilitate like for like sequential and year on year comparisons of our performance following the closing of our announced agreement with TikTok and the deconsolidation of GoToLogistics.

These pro form a figures assume that Tokopedia and GoToLogistics were deconsolidated on 01/01/2024. We will also refer to group EBITDA, which is calculated from profit and loss from operations excluding depreciation and amortization as well as non recurring items. Further, we will also refer to adjusted operating cash flow, which is operating cash flow after adjusting for cash flows related to the lending disbursements and pass through funds. For more information and additional disclosures on our recent business and financial performance, please refer to our earnings press release and supplemental presentation, which can be found on our IR website. With that, I will turn the call over to Patrick.

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: Hello, everyone, and thank you for joining us today. In the second quarter, Gotoh Group set new records across the board with group core GTV growing 43% year on year, net revenue rising 23% and adjusted EBITDA hitting a new high of $427,000,000,000 or US26.3 million dollars growing R491 billion dollars or US30.2 million dollars year on year. Our profitability journey has progressed substantially over the past few quarters. And I am pleased to note that during Q2, we generated positive group EBITDA for the third consecutive quarter, totaling billion dollars US18 million dollars Group EBITDA shows the recurring EBITDA of our core business, demonstrating significant ongoing efficiency improvements. In addition, we delivered positive adjusted operating cash flow of $313,000,000,000 or $19,300,000 demonstrating the strength of our strategy and sustained momentum in the business.

Both FinTech and on demand services also delivered their best ever adjusted EBITDA, which I will discuss in more detail shortly. These results keep us firmly on track to meet our full year adjusted EBITDA guidance of R1.4 trillion to R1.6 trillion as we seek to create a customer centric technology business that supports the livelihoods of countless travel partners and merchants across Indonesia. Indonesia is one of the world’s largest yet still underpenetrated digital markets, which gives us a long runway for growth. To capture it, we must ensure we are fully equipped with the best people and technology. The main barriers we identified were leg legacy tech infrastructure, which was built over a number of years, as well as the fact that our tech tech talent pipeline was unable to keep up with the demands of a rapidly growing business.

In the second quarter, we tackled our tech infrastructure problem by replacing our cloud systems, which will becoming increasingly inefficient and costly with brand new infrastructures provided by Alibaba Cloud and Tencent Cloud. We completed the migration in this one because then the second quarter on time, resulting in a lighter, more agile platform that will accelerate our product pipeline, enabling quicker cross business product rollouts and innovations. This project ranks among the most complex of its kind globally. It required coordinating four cloud providers across four geographies and moving all core business lines in under a year, all without material downtime or user disruption. All go to data data is stored and processed on Indonesia based infrastructure, ensuring full data sovereignty compliance and enterprise grade security for consumers and partners.

While capability and speed were the priority, the financial impact is clear. Cloud cost will step down materially by at least 50%. Delivery and fintech and a larger, more capable engineering bands at home on top of the efficiencies from our cloud foundations. This talent first model optimizes how we build, launch, and scale, translating technology into better customer and partner experiences and durable value creation. Turning now to how we are unlocking the bottleneck around our talent pipeline.

Our goal is simple, fill the best engineers. We are committed to growing the talent pool at home, while we also must we must also we must also go to where the talent currently lies. This is why we opened technology hubs in China, one of the deepest pools of engineering and data science expertise, to work alongside our existing teams. By collaborating together, this arrangement will raise the bar across the organization, providing benefits to all our engineering teams in Indonesia, Singapore, and India. Ultimately, the benefits will be faster time to market, stronger core platforms across mobility, delivery, and fintech, and a larger, more capable engineering bench.

With strong infrastructure and talent in place, we are in an excellent position to really invest in our AI capability, which is already market leading in Indonesia. In the second quarter, we launched Sabad AI’s 70,000,000,000 parameter foundation model and hosted hosted entirely in Indonesia. Global models are powerful but often miss Indonesian language nuance and can be costly at scale for low to mid complexity work. Sabad AI gives us high quality, locally optimized performance and lets us adapt quickly. We are we are embedding Sahabat AI modules across the ecosystem to create operating leverage, faster decisions, better accuracy, and lower cost to serve.

Running Sahabat AI in Indonesia reduces latency, and we combine it with best in class external models where they fit the use case. Together, this approach delivers quicker product cycles, free chain experiences for customers, and meaningfully lower unit costs as we scale. With all this in place, we are ensuring our business is optimized for faster, more agile execution while providing improved experience for consumers, travel partners and merchants as we embark on our next phase of growth, unlocking the huge potential that Indonesia has for our ecosystem. Turning now to fintech. Payments is the backbone of our ecosystem as it becomes a bigger part of everyday life for multiple use cases across Gojek, Tokopedia, QR code payments, bill payments, pop ups, and transfers.

It will bring more Indonesias Indonesians onto the platform. This makes GoPay a very powerful growth engine for the ecosystem. The rich, real time data it provides lets us match customers with the products and services they genuinely want. Customers enter via GoPay and move seamlessly across mobility, food, and financial services, broadening our rates into the mass market and strengthening retention. In short, payments is the current that powers the go to wild flywheel, driving deeper engagement, better economics, and wider reach.

Our fintech business achieved another milestone this quarter, delivering a record adjusted EBITDA of 88,000,000,000 rupiah or 5,400,000.0 US dollars, growing by 87% from the prior quarter and up by 200 fix 56,000,000,000 rupiah or $158,000,000 US dollars from a year ago. Monthly transacting users reached 22,400,000, up 29% year on year. For GTV, our net revenue grew by 4676% year on year, respectively. Two years on from its July 2023 launch, the standalone GoPay app is a key driver of that performance. Since launch, fintech MTUs are up 68%, core GTV is up 2.4 times, and average payment transactions per user have risen 26%.

Every day, GoPay use cases deepen engagement. And with digital payments penetration in Indonesia still low, we see substantial runway ahead and expect continued rapid user growth. Consumer loans outstanding expanded to 6,600,000,000,000.0 rupiah or $4.00 $6,000,000, up 90% year on year and 15% quarter on quarter, marking the ninth consecutive quarter of strong loan book growth. Assets quality remains strong and stable, underpinned by our unique ecosystem advantage. During on one of Indonesia’s richest pools of transactional data, we acquire customers efficiently, price risk accurately and manage the portfolio proactively.

Key delinquency and nonperforming loans ratios remain comfortably within our target range, highlighting disciplined underwriting and prudent portfolio management. Cross selling continues to accelerate. Loans disbursed to GoPay and GoCheck users rose 96% year on year, and the share of active users with at least one lending product continued to increase. This deepens relationship, lifts lifetime revenue, and at scale with minimal incremental acquisition cost. Let me turn to strategic partnerships.

With Indonesia’s most comprehensive digital ecosystem and tens of millions of customers, GoTo offers partners brand enhancing, rich, and trusted distribution, while our payment rails provide tangible value add to their users and merchants. We selectively work with high quality platforms that have large user base where there are clear two way synergies, better, more convenient experiences for their customers and more users, more transactions, and deeper engagement for both sides. Recent examples include include our work with Telkomsel and TikTok, where GoPay is embedded directly into everyday journeys. These integrations extend to our fintech reach, lift payment activity, and open new use cases all while improving customer experience. In the second quarter, we launched TikTok Sympathy, a joint product from Taobao, TikTok, and Gopay that offers TikTok specific data packages, including options designed for creators.

Customers can purchase TikTok data package without leaving the GoPay app, improving convenience and the overall experience on TikTok. For GoTo, the integration broadens our reach, increases payment activity in GoPay, and deepens engagement in a fast growing segment. We also launched TelkomCell Wallet by GoPay, a cobranded digital wallet embedded direct directly within the My TelkomCell app. This enhances TelkomCell customer experience by providing them with access to instant refunds and seamless payments leveraging Gopay’s infrastructure. The partnership combines the strengths of both ecosystems and creates a solid foundation for future growth.

In the second quarter, we launched a cash loan product called GoPayPinjam on TikTok shop, making us the first in Indonesia to enable cash loans within the platform. The integration gives eligible users a convene a convenient in app option to access credit without leaving the shopping experience. This initiative is consistent with our focus on building products and partnerships that enhance customer experience and convenience. Looking ahead, we are confident in meeting our fiscal year two thousand twenty five targets to increase our loan book to 8,000,000,000,000 rupiah while achieving at least 300,000,000,000 rupiah in adjusted EBITDA. Turning on to on demand services, we are executing a clear two track strategy.

First, scaling our business, particularly in the mass market with reliable great value service options. Second, monetizing premium services for customers who prioritize time and time and comfort. With our upgraded technology stack, we are set to roll out the largest product release pipeline in on demand services to date with features tailored to each user segment and designed to raise the experience for customers and driver partners alike. We delivered record adjusted EBITDA of INR $328,000,000,000 or approximately USD 28,200,000.0 in the second quarter. This represents an increase of 264% year on year, while GTV and net revenue grew by 913% year on year, respectively.

Despite the tightening in discretionary consumer spending and intensified competition, our disciplined strategic approach ensured that we successfully maintain our market share in on demand services. We did this by tailoring our platform for user groups so that it appeals to both premium, high spending users who spend more and bring higher margins as well as mass market consumers who bring volumes and growth. Maximizing ecosystem synergies is central to our strategy. By strengthening the links between our services, we enable customers to move more seamlessly across the services, driving growth and elevating the experience for all stakeholders. In delivery, we increased wallet share among higher income users while widening rates across the broader customer base, marking the business’ fourth consequent consecutive quarter of margin expansion.

Premium Food Express recorded a seventh sequential increase in GDP penetration fueled by time sensitive customers who value faster delivery. We are expanding the offering with new premium features designed for these high spending users, deepening engagement, and encouraging repeat orders. Our merchant facing revenue streams continued to gain traction this quarter. Advertising revenue reached 1.8% of the GMV, its fourth straight quarterly increase, while merchant funded promotional spend rose 118% year on year. Our targeting algorithm aligns offers with customer preferences, generating measurable sales uplift for merchants, prompting them to recognize the value of our advertising and promotion goals.

This dynamic deepens merchant relationships, enhances customer experience, and drives high quality growth for go to. In mobility, competition intensified during the quarter. We moved quickly with targeted market specific responses and successfully protected our market share. The rise in competitive intensity had a near term impact on Mobility margins, and we will continue to calibrate our approach to balance market share protection with disciplined long term growth and profitability. Operational performance continues its upward trajectory with improved supply positioning, allowing us to complete more right requests and deliver a smoother experience for customers.

Upcoming tech and driver app upgrades in the second half will build on this progress. Innovation remains central to how we serve both customers and driver partners. Since premium services were launched in 02/2024, it has become a meaningful contributor to mobility revenue. We are executing a two track strategy, deepening monetization in the premium segment where features like faster research faster search resonate with time sensitive users while pursuing a clear mass market growth strategy focused on rates, reliability, and great value for everyday trips. In the second half, we’ll build on this momentum with features that better align service levels to customer needs and elevate the part the experience for consumers and driver partners alike.

Looking ahead, we remain confident in achieving our full year 2025 adjusted EBITDA targets. We will continue to invest in technology, particularly to strengthen our personalization, optimization and AI capabilities, reinforcing our competitive edge and laying a robust foundation for sustained long term growth. Finally, I would like to address recently announced updates to our management team. At our general meeting of shareholders in June, we took a meaningful step forward in strengthening our executive branch bench. These changes reflect our commitment to continuity and operational excellence.

First, I am pleased to announce that Catherine Indra Suchayo has been appointed vice president director and deputy CEO. Under her leadership on demand services, achieved strong growth and continued profitability improvement. In her new role, she will work closely with me to coordinate strategy across the ecosystem and deepen stakeholder relationships, ensuring we remain focused on both disciplined execution and long term value creation. Hans Patul assumes an expanded role as president of on demand services while continuing as group COO, now overseeing both ODS and fintech. Hans brings truly fully holistic experience.

He originally served as COO of Gojek before moving to become president of fintech, then go to group COO. This gives him deep insight into every aspect of our operations, meaning he is ideally placed to lead our operations through its next phase of growth. We also welcome Sudanshu Vaherjee to the board of directors as president of GoToFinancial. Sudanshu built our payment platform, guided fintech to profitability, and spearheaded the launch of the stand alone GoPay app, driving a significant expansion of our user base. His track record makes him a natural fit to steer GoToFinancial on its current growth trajectory.

To broaden and strengthen the represent representation on the board of directors, we have elevated several senior leaders from across the organization. William Sheng, our chief technology officer who led our cloud migration, Monica Milen Molianto, chief pop people officer, Kusumo Haddiani, director of legal and group corporate secretary, and Adi Mulyana, director of public affairs and communications. Together, my leadership brings deep expertise in technology, talent, governance, and stakeholder engagement, capabilities that may accelerate our growth, enhance customer and driver partner experiences, and create value for all stakeholders. I look forward to working closely with them as we unlock the full potential of the GoTo platform. I will now hand over to Simon to talk through our financial comments.

Simon Ho, Group CFO, GoTo: Thank you, Patrick. We delivered continued growth and improved profitability across the business with second quarter group core GTV growing 43% year on year, group net revenue rising 23% year on year and group adjusted EBITDA reaching $427,000,000,000 or 26,300,000 an improvement of rupiah $491,000,000,000 or $30,200,000 year on year. As mentioned earlier, we also delivered our third consecutive quarter of positive quarterly group EBITDA. Group EBITDA differs from adjusted EBITDA as it includes share based compensation. It totaled two ninety two billion or $18,000,000 an improvement of $874,000,000,000 or $53,800,000 year on year.

The group generated billion dollars or US19.3 million dollars in adjusted operating cash flow, which is our reported operating cash flow, but excluding cash flows related to loan disbursements in our lending business and customer fund flows in our payments business. Adjusted EBITDA in the FinTech segment reached RUB88 billion or US5.4 million dollars an improvement of RUB256 billion or US15.8 million dollars year on year. Looking at the On Demand Services segment, adjusted EBITDA was $328,000,000,000 or US20.2 million dollars up 264% year on year, reaching 2% of GTV. Mobility and delivery posted GTV growth of 10.47.8% year on year, respectively, with net revenues rising by 12.7% for mobility and 13.6% for delivery. Adjusted EBITDA for mobility grew 15.8% year on year, while delivery adjusted EBITDA surged by 193,000,000,000 or USD 11,900,000.0 year on year.

In our e commerce segment, service fee revenue from Tokopedia in the second quarter reached INR199 billion or US12.3 million dollars Our cash position remains healthy. As of 06/30/2025, we held RUP18.2 trillion or US1.1 billion dollars in cash, cash equivalents and short term deposits, giving us the flexibility to invest in long term growth while maintaining a strong financial foundation. Looking ahead, our focus is on building upon the progress we have already achieved, and we remain confident in our ability to drive consistent profitable growth throughout 2025. With that, I will hand the call back to Joe.

Joel Ellis, Head of Investor Relations, GoTo: Thank you very much, Patrick and Simon. That’s the end of our prepared remarks. We will now open the call for questions. If you wish to ask a question, please use the raise hand function that is available to you on Zoom. Once again, if you do wish to ask a question, please use the raise hand function on Zoom.

First question comes from Adrian Joseph Mandiri Securita. Adrian, please unmute yourself and go ahead. Okay. We’ll go to our we’ll go to our next analyst then. Our next analyst yo.

Let’s go to our next analyst. Thanks. Our next analyst is Ferry Wong from Citi. Ferry, please go ahead and ask your question.

Ferry Wong, Analyst, Citi: Yeah. Hi. Can you hear me?

Joel Ellis, Head of Investor Relations, GoTo: We can. We can hear you perfectly. Yes.

Ferry Wong, Analyst, Citi: Sure. Yeah. Okay. Congratulation on your continued improvement on your EBITDA. Yeah.

I got two questions. First, on the practically, would the current macro environment how is well, how this affecting your fintech and on demand surface businesses? That’s my first questions. The second question is, can you break down your loan book between the cash loan and the NPL and share the split of origination from TTS, Takopedia, GoPay, and GoJack? And, also, how is E and P growth trending on TikTok?

Those are my two questions. Thank you.

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: Thank you, Perry, for the questions. I will ask Catherine to address the first question, which is around the current macro environment and the impact on our fintech and on demand services.

Catherine Hindris Uchayo, Deputy CEO and Vice President Director, GoTo: Thank you, Patrick. Thank you, Perry. Hi. How are you? So let me address the first question on the current macro environment effect on our businesses, both the fintech and on demand services.

Yeah. As as mentioned right in the result earlier that well, while we do see that the micro indicators shows some softening, but I think this is where we are as a platform, especially our ecosystem of the Fintech and ODS combined together where we are uniquely positioned here. As a tech company, we are we believe we are more nimble. We are more agile. Right?

We are able to adjust our strategies more swiftly. We’re able to adjust kind of, like, how how we are seeing the situation also faster probably compared to the more traditional kind of, like, setup. Right? This is clearly shown, hopefully, in our 23% continuous year on year growth this quarter as well. So maybe if I may share, right, how we see this situation as a as a platform, as a go to whole ecosystem, there are three three key things that we see that differentiate us.

Number one is the power of ecosystem that has been mentioned. Right? Between the GTF, the fintech business, and the ODS business, we actually have a unique kind of access to to to a data to to kind of access to the customer that makes us more efficient as a as a platform, our ability to acquire users, our ability to serve them, and, and, of course, our ability to monetize them better as well. I think this is where we are playing to our strength as as ecosystem. Of course, on top of that as well, through our payment business, the structural tailwinds also very, very, very important here.

This is the rising digital payment adoption and expanding financial inclusion. We believe this continue to give us a long runway, and we are very well positioned to to capture capture this. That’s number one, the power of the ecosystem. Secondly, is the tech capabilities as we mentioned because we are we are a tech platform here. We believe our continuous investment in our tech stack, right, also play a very, very important role here.

Couple of example. The first one, right, if you think about the the food delivery business, a lot of the food merchant today with their limited resources, they they will look around and see where they can best deploy their resources. Their promo money, their their their their their budget, right, through our data algorithm, our investment in our promo and and the promo targeting kind of engine, our platform able to provide a better ROI for the lack of better word for our merchant. Right? This is this is, again, where where we play to to we continuously deepened this this capability of ours.

The second example is the promo promo targeting engine. Right? This is able for us to react quicker, right, with the current situation, which customer to target, what kind of use case to target, so on and so forth. This is the second one. The third one, as Pat mentioned earlier, we will continue with our two track approach here while we continue to kind of, like, focus on our premium segment as we have shared in the past few quarter, but we’ll also continue to deepen our our penetration understanding of the mass market as well.

This is can clearly be seen through the continued growth of a good pay good pay apps as well as the as the Hemat strategy that we continue to to improve on. Last but not least, with our recent cloud migration, the China office opening, our technology foundation is lighter, faster, more scalable, and we believe that we are speeding speeding up as well, accelerating in our our speed of shipping product. This half next half, our pipeline is probably the largest we’ve ever seen with a lot of features initiative tailored to not just to the premium user, but also to the mass market user that that we have kind of, like, in our in our pipeline. We believe as we roll this out, the again, the power of the ecosystem will will continue to deepen our our engagement while still delivering the sustainable profitable goals. Sorry for a long answer, but, yeah, very important one.

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: Thank you, Catherine. Sudhako, can you address the second question about the loan our loan book and channel channel origination?

Sudhanshu Rehedja, President of Financial Technology Services, GoTo: Sure, Pat. Hi, Perry. Thanks for the question. So your question was in two parts. Let me go through it one by one.

First on platforms, we see incredibly strong momentum led on majorly on our own ecosystem. The majority of our loan outstanding, I would say roughly close to about 60%, comes through the GoPay and the GoCheck apps. And those channels are growing faster than third party marketplaces. Now Now this is powered by better cross selling, availability of more data, and much deeper insights for these users, than outside the ecosystem. However, at the same time, partnerships such as TikTok broaden our reach.

They bring in a lot of new users and complement our core distribution. On TikTok shop and Tokopedia specifically, the BNPL momentum has been strong, and we are working on launching new products and features. As Pat shared earlier, in q two, we also launched the cash loans on the TikTok platform to better serve that customer segment. It’s a new start, but it’s bringing in a lot of new users. Now moving on to the second part of your question.

On the product mix, while we don’t break out the exact splits, I would say that cash loans make up a larger share of outstanding principal given the higher ticket sizes and the longer tenures, while BNPL represents a larger share of users and a larger share of transactions. All in all, we’ve been growing fairly fast. We grew roughly 90% year on year, and the loan book is at about 6,600,000,000,000.0 as of, last quarter. In the coming half, we’re gonna continue to expand both BNPL and cash loans, especially within the GoToEcosystem where engagement, risk performance, and unit economics are the strongest. Thank you.

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: Thank you, Sudhanshu.

Joel Ellis, Head of Investor Relations, GoTo: Thanks very much, Ferri. We’ll go to the next analyst. The next analyst is Henry Wibowo from JPMorgan. Henry, could you please unmute yourself and go ahead and ask your questions?

Henry Wibowo, Analyst, JPMorgan: Hi. Thank you, Patrick, Simon, Joel and Go to team for the presentation, and congratulations on the strong set of result. Three questions from my end. Number one, could you tell us more about this, partnership between Telkomsel and TikTok? How’s it gonna broaden the fintech strategy?

And do you see further partnership, of this nature, going forward? Second question is on net profit. I think, congratulations on the achievement for adjusted EBITDA and also group EBITDA. But, how about net profit? Do you have any timeline when, Go to can actually deliver positive net income, and what’s the bridge between the EBITDA to income right now?

Lastly, on ODS, what’s the growth outlook for the remaining of this year and also next year, 2026, if there’s any? I think based on the latest number, seems like, Go to has been growing, decent, at about maybe high single digit. Given the rising competition, maybe could you share more about the outlook? Thank you.

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: Thank you, Henry. I will ask Anshu to address your first question about the fintech partnerships with Kakamsao and TikTok.

Sudhanshu Rehedja, President of Financial Technology Services, GoTo: Thank you, Pai. Hi, Henry. Thanks for the question. Okay. So partnerships.

I think the most powerful fintech partnerships are ones that disappear into the background. They’re not just distribution deals. They are seamless integrations that bring financial services and make them part of everyday lives of people. That’s why in partnerships, what we focus on is providing value to our customers, whether they’re on our apps or they’re on our partners’ apps. Just to lay out the background.

Right? Telkomsel is Indonesia’s largest telco with very deep reach into cons consumers nationwide. Now all our work together with them spans multiple initiatives, from from payments integration to launching products that we know our customers will love and then leveraging our combined scale to reach millions of potential customers. Some of the examples that Pat shared earlier, example, the Telkomsel wallet builds on our experience of operating wallets within GoCheck and Tokopedia, applying those learnings to improve the customer experience within the Tokopedia app, sorry, within the Telkomsel app. Over the coming months, we will keep seeing incremental features that keep coming on the back of this feature.

Coming to TikTok, they don’t need an introduction. They’re one of the world’s largest social media platforms with very high engagement in Indonesia. Through our partnership, we’re creating new ways for users to access and use our payments and lending solutions seamlessly in their daily flows. For example, when a user decides they want to buy a product on Tokopedia or TikTok, we help provide options to simplify their buying decision. You can go for it.

You can go buy it right now. You can go pay for it over time depending on whatever is your condition at that point in time. And all of these options are lending to strong growth in both payments and lending. So, yes, we see very significant scope for further partnerships of this kind done right. These can accelerate adoption, deepen our engagement, and open up completely new channel channels over the medium term.

Thank you.

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: Thank you, Sudanshu. Catherine, I’ll let you answer the question about the net profit at group level and how you how we approach that to how we approach, I guess, that EBITDA to net net income.

Catherine Hindris Uchayo, Deputy CEO and Vice President Director, GoTo: Thanks, Pat. Hi, Henry. Thank you. Thank you for the question. As Simon mentioned earlier, we’ve put this is five consecutive quarter of adjusted EBITDA improvement and the three quarters for the group EBITDA positive.

This is especially after the stock based compensation. So from here, to your question, to to to bring it to the net income. Right? The main item between our EBITDA and the net profit is the share of our tokopedia result. Right?

As as you know, tokopedia result is a noncash noncash item, and it’s not reflective of our core operating performance. So this is this is the the the gap between the EBITDA and the net income. Another one on the stock based compensation as mentioned as well is also a noncash. This is the difference between the adjusted EBITDA and the group EBITDA. It’s also a noncash, and as you see, we we remain disciplined in our SPC with the quarter on quarter continue to be managed lower lower as well.

So our operating and financial performance the past few quarter has been consistently strong and expanding, and we expect to continue that momentum. This is putting net to net profit clearly within sight. Thank you.

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: Thank you, Catherine. And, Hans, would you please address the third question about the growth outlook for our on demand services

Hans Patuo, President of On Demand Services and Group COO, GoTo: Sure thing.

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: For the rest of 02/2025?

Hans Patuo, President of On Demand Services and Group COO, GoTo: Sure thing. Thanks a lot for your question, Henry. On the growth outlook for ODS for the rest of the year, first, let me state that, you we are very committed to do two things. One is to maintain and grow market share while at the same time improving profitability through better products and also increasing our operating leverage. Overall, the top line, when we look at if you look at some of the publicly available information, consumer confidence indices has trended lower and retail sales growth has also slowed compared to previous year.

Hence, we expect the full year GTV growth for ODS to grow, but at a somewhat more measured pace. The mitigation for this are twofold. One is continuing to increase penetration. When we look at the penetration levels of our services in Indonesia compared to comparable benchmark markets, there is still room to grow penetration, but that’s what we will continue to focus on. Secondly is the strategy that Pat has outlined earlier in the prepared remarks, which is our two pronged approach.

Right? On one hand, continuing to deepen the penetration growth in the premium segments while simultaneously pursuing a clear mass market growth strategy that is based on product and and not based on discounting levers. I think if I were to put it all together, one example of that was in the previous quarter where even as competitive intensity rose, we’ve acted quickly with very targeted, very market specific actions. We have protected our market share and while at the same time maintaining our profitability. So I think that charts out a bit of the road map of what we intend to do for the rest of the year, which is to continue to maintain and grow our market share while at the same time improving profitability.

Thank you, Henry.

Joel Ellis, Head of Investor Relations, GoTo: Thanks very much, Henry. We will go to another analyst, Ryan Winita from IndoPremier. Please unmute yourself. Go ahead and ask your question.

Ryan Winita, Analyst, IndoPremier: Yeah. Thanks, Joel. And and can you hear me?

Joel Ellis, Head of Investor Relations, GoTo: Yes. We can. Perfectly.

Ryan Winita, Analyst, IndoPremier: Yeah. Thanks thanks, Joel, and congratulations on consecutive positive EBITDA. And I have two questions from my side. I think we already discussed about, like, the the current macro environment and all of the concern that is happening around us. But I just wanted to know about the sustainability of the fintech group trajectory in terms of the loan outstanding.

The the previous guidance can still be used for for the rest of the year. And my second question, at least, related to the the cost reduction, whether if there is any opportunity to food to do further cost reduction or some kind of, like, efficiency improvement within the company. I think that’s all of two of my questions. Thank you.

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: Thank you, Ryan. Sudhashu, can you please address the first question about the sustainability of fintech’s core trajectory?

Sudhanshu Rehedja, President of Financial Technology Services, GoTo: Sure, Pat. Thank you. Thank you, Ryan. Great great question. I I personally spend a lot of time thinking about this, so maybe let me share more.

On the sustaining so we’ve been growing the fintech business for the last few years. And I think we are very optimistic about being able to sustain this growth in the future, and let me share why. So Indonesia is one of the largest and fastest growing markets for digital payments in the world. There are very strong structural tailwinds tailwinds as the government is digitizing the country. And, as that happens, more and more users become digital for the first time.

And from where we are, we are very well positioned to lead that growth. Maybe let me split the market into two different segments. If you look at affluent users first, deep penetration on Gojek and Topopedia has made GoPay the market leader among wallets in this segment. We build this position over years with multiple products, GoPay, GoPay Later, GoPay CarbonGone, all of which continue to grow rapidly and expand into new use cases. We serve virtually every high frequency use case there is.

We’re very, very strong in online payments, and our offline curious volumes have grown at high teens every quarter for the past few years. Also had notable wins. Like, we built out a AI powered split bill feature launched last year on the Kopay app, which is now the largest in this category in Indonesia. And based on its success, we’re doubling down on a lot of new social use cases. And you’ll see more of that in the quarters to come.

So if you look at affluent users, we are very strong there, and we intend to continue to strengthen our leadership in the segment. If you look at the other side of the market, the mass market, that is one of the most underserved segments. And, we decided to build a standalone Gopay app to meet the needs the specific needs of the mass market. Over the last two years, we’ve seen significant growth, especially in tier two and tier three cities. Now maybe let me take a moment to explain more about this, sir.

So these customers have different requirements. So we’ve had to fully tailor our solutions to make sense to the segment. For example, we started with making sure that we build a small app because when people run low on disk, on their phone, they delete the apps that are bigger, and we wanted to be sure that we don’t get deleted. Then, for example, we launched free transfers because, well, you shouldn’t have to spend money to move your own money around. And then third, we launched our consistently low prices campaign for builds and mobile drop ups.

And we did all of this by doing a lot of background work, like, working with tens of partners to figure out how do we keep our cost to serve incredibly low, and, like, building go based code so that we can pitch the right product to the right user when you come to our app. All of this together has made us one of the most downloaded apps in the country in the last two years. I according to Play Store, Android app has been downloaded a little over 50,000,000 times. What we are doing is we’re listening to the feedback, keep our experiments running, keep launching new stuff, and we keep growing. Now late last year, we launched another product that we call Gopay Games.

It’s a platform for in game top up top ups. And, in a few short quarters, we’ve seen that game become one of the largest in its category. And we got a lot of feedback from our users, and they love the games. So then we went on to launch roughly about 50 mini games in the Goope app. And that had tremendous, you know, engagement.

So we went on to build Goope Pet, one of the games that we built out. And we’ve seen very strong engagement there as well to the point that now roughly 10% of our monthly active users are are active on at least one of these games. What these are driving is, exceptionally high engagement, really cheap prices, and very strong top of mind. Now in the coming quarters, we’re taking more steps to make Copay the most available wallet, and we’re doing that by a few key areas. One, we are deepening our penetration in cash and cash out points nationwide.

Digital to cash is one of the key frontiers that we have to cross. Second, we are going after public transportation. We are now, as of today, the only wallet which is accepted across MRT, Transjekartha, KCI, GO Transit. You name it. If you’re in Jakarta and you gotta take public transport, we’re the only wallet that works across.

As you mentioned earlier, we’re working with the telcos to bring digital payments to areas previously outside of our reach. In the coming quarters, we’re going to get this user base, not with discounts, but by building consumer centric products that help solve their life’s problems. So at least we see a very strong potential for growth here. Lastly, coming to monetization. This one is simpler.

We’ve consistently shown our ability to grow our loan book while keeping a very tight watch on portfolio quality. You can you can see that in our delinquency data. Even though we have doubled our loan book over the last year, our lending penetration on GoCheck and Copay apps is still in low single digits, which means we have a lot of headroom. And as GoPay scales, this for this headroom will only further increase. So if you put it all together, all five things, a large and fast growing market, strong positions in both affluent and mass markets, consumer centric products, a highly engaged user base, and a disciplined approach to lending.

This is what we believe is a recipe for growth, and we are optimistic that we can continue this for years to come. Thank Thank you. You.

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: Thank you, Sudhanshu. Simon, would you please answer the second question about opportunities for further cost reduction and efficiency improvements?

Simon Ho, Group CFO, GoTo: Yes. Yes, Patrick. Thank you, Ryan, for the question. Short answer is yes. We have been and we will continuously focus on driving our cost efficiency and cost improvements.

As Patrick mentioned in earlier in his remarks, we we spent the last year pretty much we’ve upgraded and refreshed our technology infrastructure. And one of the benefits of that is we’re now on much lower cost technology infrastructure with our new cloud providers. As we mentioned before, the rates on these new clouds are now more than 50% lower than before. And and, of course, this is highly beneficial for the unit economics for the business. We in terms of so the second point to make is we are also continuously driving positive operating leverage to the business.

And you would have noticed if you look at the group numbers, it has been the case in the last several quarters and and and going back many quarters now that we’ve loaned our operating expenses at a slower pace than our revenue growth, quite substantially lower. And we intend to continue to drive the positive operating leverage with the business through higher, you know, tighter cost discipline and also through the product innovations and in in in improving our revenues. Our goal is to achieve a leaner cost base and be able to achieve durable margins while we’re able to continue to invest in product and technology that can drive the business forward. I hope that helps answer your question, Ryan.

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: Thank you. Thank you, Simon.

Joel Ellis, Head of Investor Relations, GoTo: Thanks very much, Ryan. We’ll go to the next analyst, Ari Jahar from Macquarie. Ari, please unmute yourself and go ahead.

Ari Jahar, Analyst, Macquarie: Hi, Patrick, Simon, Joel and Goethe team. Thanks for taking my question and well done for a resilient quarter. So I have three questions for today. So first two on fintech. So first, what will be the strategy to drive loan book growth in the second half of the year to reach $8,000,000,000,000 of loan book by year end, especially after nine to the second quarter of growth?

Second, on fintech. Can you discuss the credit risk trends and also the outlook for the rest of the year? And then lastly, on ODS, in light of the competition, what are your expectations for margins and pricing for the second half of this 2025? Thank you.

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: Thank you, Ari. Sudhanshi, why don’t you take the first two questions about the strategy to drive loan book growth to achieve our target of 8,000,000,000 of loan outstanding by year end and the credit risk trends for the rest of the year.

Sudhanshu Rehedja, President of Financial Technology Services, GoTo: Thank you, Pat. Hi, Adi. Great question as always. Maybe let me start off with the first one. Our strategy to drive loan book growth for the second half.

Again, I think this is two parts. I’ve already talked for a long time on user growth and how we’re bringing more people, so I’ll not cover that again. Right? As that keeps moving, that gives us a lot of headroom. In terms of how we grow the lending users, the strategy is two parts.

It’s time tested and proven. We’ve done it consistently, and this is what we’ll continue to do in the coming half. First is on expanding our lending customer base, and second on is on increasing lending to the existing customers. Maybe let me talk about both of them. Now first, on new users.

As I said earlier, only a small percentage of our users take a loan with us today for of all the users who are in the GoTo ecosystem, which means we have significant headroom. Now to go after new users, we keep upgrading our credit scoring models and cross selling capabilities to extend loans to more first time borrowers with the key measure being that we do not want to compromise quality. We start with very small loans and over the next few quarters, slowly increase the limits and tenure as we understand those users better. Our delinquency data over the past six quarters shows that credit quality has dream remained consistently strong and stable. And over the coming half, that is what we intend to do as well.

Second, coming on to existing customers or portfolio management, account management. Now here, we are seeing a very healthy growth from customers who have successfully repaid earlier loans. This and they come back for more. This this reflects satisfaction and trust in our products. And those positive experiences are leading to higher usage, deeper penetrations, and is adding meaningful scale to the loan book.

Just to add, the repeat loans always have significantly better risk performance because we understand those users a lot better. Now if you look at the half so far, we have, we’ve come a long way. We’re now at rough at close to 6,600,000,000,000.0 IDR. We have half of the year to go, which is usually the faster growing half

Hans Patuo, President of On Demand Services and Group COO, GoTo: of the year. So

Sudhanshu Rehedja, President of Financial Technology Services, GoTo: as long as we continue on the strategy of going, you know, going after users while keeping a tight watch on the quality, I feel fairly confident that we will reach the 8,000,000,000,008 trillion target by the end of the year. Now coming on to your second one, which is on the credit risk trends and the outlook for the rest of the

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: year. Now

Sudhanshu Rehedja, President of Financial Technology Services, GoTo: I I I agree that it’s a very relevant question right now given the market environment. Now as a team, we closely monitor the macroeconomic trends in Indonesia globally as well as the asset quality amongst competitors and major banks. And, we are seeing what you were seeing as well. However, our experience has been different. Over the past year, we have grown the loan book significantly, and we have done so without any material deterioration in credit quality.

And I think the reason for that are three things. First, our ecosystem gives us a unique advantage. Think about it. There are tens of millions of customers generating billions of transaction on our platform. And that rich dataset, which is now strengthened even more by the scale of the GoPay app and its expanded product set, gives us very deep insights into individual credit risk than traditional lenders can access.

Second, our credit model is very dynamic. We can adjust quickly to market conditions and constantly validate model output through live lending experiments, which we do all of the time, which helps us make course corrections in real time. Third, our loan portfolio is short duration. This means it allows us to make rapid adjustments if credit conditions turn, which limits risk while keeping quality stable. Now if we hit a risk scenario, or a stress scenario, which there are no guarantees for in life, we could tighten credit standards very quickly, which might slow growth in the short term, but protect quality as most of the repaid is short term and gets repaid within a few months.

So overall, our focus on short loans combined with ecosystem insight and flexibility has kept our credit quality consistently stable even in a, softer, macro. And looking at this, I feel that the trend looks good. We are hoping that there is no major change in the macro in the coming six months. And based on that assumption, we are very confident that, we should be able to reach the 8,000,000,000,000 loan book by the end of the year while maintaining a healthy portfolio quality. Thank Thank you.

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: Thank you, Sudhanshu. Hans, would you, please answer the the third question about the expectations of margins for the on demand services?

Hans Patuo, President of On Demand Services and Group COO, GoTo: Sure thing. We’ll do that. Hi, Ari. Thank you for the question. I think on ODS bottom line, we expect margins to remain stable, and we also expect profitability to remain strong.

We will continue to execute our two track strategy, which is, on one hand, growing the premium segments, which tend to have higher margins, while at the same time growing the mass market through product levers via the discounting levers. So combined, putting things together, we are on track to deliver at least 1,100,000,000,000.0, rupiah of adjusted EBITDA this year, which will be 60% higher than than what it was last year. I hope this answers your question. Thank you.

Ari Jahar, Analyst, Macquarie: Thanks, Gurto, team, and all the best for the year. Thanks.

Patrick Wallou Yeou, President, Director and Group CEO, GoTo: Thank you, Ari.

Sudhanshu Rehedja, President of Financial Technology Services, GoTo: Thank you.

Joel Ellis, Head of Investor Relations, GoTo: Thank you very much, Ari. And it is past the top of the hour. That will be the last question we have for today. Thank you very much all for attending this call, and we look forward to speaking to many of you in the coming weeks and months.

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