Bisnis.com, JAKARTA – PT GOTO Gojek Tokopedia Tbk. (GOTO) received a positive response from analysts after releasing its 2023 financial performance.
Ciptadana Sekuritas analyst Gani said GOTO posted positive adjusted EBITDA for the first time in the fourth quarter of 2023 amounting to IDR 77 billion. According to him, there are three key factors that contribute to the breakeven point.
First, accelerating growth because gross transaction value (GTV) reached IDR 163 trillion in the final quarter or grew by 7.8% quarterly (QoQ). Second, stronger monetization with a net take rate of 2.6% in the fourth quarter of 2023, an increase from 2.4% in the previous quarter.
“This was caused by a decrease in customer incentives by 6.6%, which pushed net income to grow well by 17.8% QoQ to IDR 4.3 trillion in the fourth quarter of 2023. “The gross receipts rate is also stable at 4.0%,” he said in research, Thursday (21/3/2024).
The third factor is further cost efficiency, especially in overhead and fixed costs.
Another note that Gani highlighted was the decline in goodwill value of IDR 78.7 trillion and MTM’s financial loss of IDR 1.0 trillion. This pushed net profit to record a loss of IDR 90.4 trillion in 2023.
“However, these costs are sunk costs and non-cash. Following the write-off, GOTO could start 2024 with a cleaner book and be in a strong position with adj. “EBITDA has turned positive and the cash balance has reached IDR 25.1 trillion,” he emphasized.
Therefore, Gani recommends buying GOTO shares with a target of IDR 150.
Meanwhile, the Trimegah Sekuritas research team Richardson Raymond and Sabrina revealed that in 2024, GOTO will focus on reinvesting in its core business, especially in the fintech sector.
“This reinvestment is critical for the company to access a larger customer base, which is experiencing losses in 2023 due to efficiency measures, and then monetize it. One of the main product initiatives for this year is buy now pay later [BNPL] for Tiktok Shop,” he explained.
The three pillars of GOTO’s focus this year are expanding the market for consumers with limited budgets and increasing the frequency of existing users. Second, increasing monetization through higher take rates on products such as Gopay. Third, further improve the company’s fundamentals with solid cost discipline.
“GOTO is focusing on two main initiatives for its fintech segment: launching BNPL for the TikTok Shop service and collaborating with BFI in driver financing,” he emphasized.
Meanwhile, Bahana Sekuritas analyst Robert Sebastian gave a target price of IDR 90 for GOTO shares. According to him, the company’s plan to carry out a buyback could increase GOTO’s share price.
“We are positive about the company’s plan to buy back shares amounting to IDR 3.1 trillion, because the company’s cash remains strong at IDR 25 trillion. “We think Tokopedia’s deconsolidation provides more room for the use of cash, as a repurchase,” he explained.
Robert added that the buyback value was still under control compared to the e-commerce segment’s promotional costs throughout the year of IDR 7 trillion, or reaching IDR 1.8 trillion per quarter.
The share buyback is expected to be carried out after approval from the AGMS in June. Additionally, Bahan Securities made adjustments to revenue forecasts of 0.7%/0.8% in 2024/2025, as it removed the e-commerce segment from GTV.
Overall, our adj.EBITDA will be IDR 125 billion in 2024 and IDR 357 billion in 2025 due to changes in share-based compensation costs.
Check other News and Articles at Google
News and WA Channel