Observing GoTo Performance Ahead of IPO: Record Net Loss Since Founded to Admit It Will Be Difficult to Print Profits Page all

JAKARTAKOMPAS.com – PT plan GoTo Tokopedia’s Gojek to take the floor on the Indonesia Stock Exchange (IDX) is still being discussed by many parties. This is because the corporate action of this technology company has been awaited by investors.

The GoTo Initial Public Offering (IPO) plan is considered to be attractive by a number of investors, considering the rapid development of Gojek and Tokopedia businesses.

In addition, the two technology platforms also have market share large in each of its business segments.

Also read: Get Priority Ordering GoTo Shares During IPO, Tokopedia Consumer Says

However, before deciding to invest in the tech giant, it’s a good idea to know in advance some of the possible risks.

One of the risks that need to be observed is the material risk that has the potential to affect GoTo’s business results and financial condition.

Also read: GoTo Asks Hundreds of Thousands of Drivers to Choose, Willing to Receive Shares or Cash

Admit it’s hard to make a profit

Through the prospectus document, GoTo’s management admits that the company will find it difficult to make a profit. Since 2018, the company has continued to experience losses.

The loss was mainly due to the large expenses incurred to support business growth.

Also read: These are the Terms of Consumers and Traders Prioritized Ordering GoTo Shares

The high costs include operational development costs, sales and marketing costs, depreciation and amortization costs, technology development costs, to salaries and employee benefits expenses.

“The company has recorded a net loss since its inception, and the company may not be able to achieve profitability,” the prospectus document reads, quoted Thursday (17/3/2022).

Also read: GoTo IPO, Pay Attention to Financial Performance

Developing multiple platforms costs a lot

The prospectus document further states that in the future GoTo will continue to invest in the development of its various business platforms. It is believed that it will cost more and take longer.

“The Company cannot guarantee that the Company will be able to post net income in the future,” the document reads.

Also read: Want to IPO, GoTo Still Record Losses of Rp 11.58 Trillion in 2021

As for creating profitability, GoTo stated, the company relies on the ability to develop and market its business efficiently and optimize its resources. Therefore, investment becomes important to achieve this long-term target.

“The Company does not guarantee that the Company will fully recover the investment costs, and the investments that have been made will result in increased revenue or business growth and profitability in the future,” the prospectus said.

Also read: GoTo Lyrics Dual Listing on the New York Stock Exchange, Hong Kong, NASDAQ, to London

GoTo’s financial performance: still experiencing a net loss

Through the prospectus document, GoTo also released the company’s financial performance until the third quarter or September 2021.

Reporting from the financial report, GoTo was recorded as still experiencing a net loss attributable to owners of the parent entity of Rp 11.58 trillion as of the end of September 2021, higher than the same period the previous year of Rp 10.43 trillion.

The increase in net loss was due to an increase in financial expenses, which was higher than the company’s net income.

GoTo’s net income as of the third quarter of 2021 was recorded at IDR 3.4 trillion, up from IDR 2.3 trillion in September 2020.

On the other hand, the cost of revenue increased from IDR 1.8 trillion in the third quarter of 2020 to IDR 2.5 trillion in the third quarter of 2021, then general and administrative expenses increased from IDR 2.1 trillion to IDR 5.1 trillion.

Furthermore, selling and marketing expenses increased from Rp 1.7 trillion to Rp 4.7 trillion, depreciation and amortization expenses increased from Rp 911.2 billion to Rp 1.5 trillion, and operating and support expenses increased from Rp 1.01 trillion. to IDR 1.1 trillion.

Meanwhile, product development expenses recorded a decline from Rp 1.9 trillion to Rp 1.38 trillion.

The loss per share of GoTo reached Rp. 197 per share in September 2021, compared to Rp. 365 per share in the same period in 2020. Throughout 2020, GoTo still lost Rp. 14.20 trillion.

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