Are layoffs effective? GoTo, Indonesia's largest technology company, expects to make an early profit in the fourth quarter.

GoTo, Indonesia's largest technology company, announced today that it will make a profit in the fourth quarter of this year, a year earlier than expected, according to news on the evening of February 16, Beijing time.

GoTo now expects the company's adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) to turn positive in the fourth quarter of 2023 and marginal income (Contribution Margin) to turn positive in the first quarter of 2023, four quarters earlier than previously expected.

In November, GoTo said on a conference call that it expected to be profitable by the end of 2024 at the earliest. GoTo said today that the new earnings schedule benefits from a strategic plan of the company, including revenue optimization, cost management and ecosystem product growth.

GoTo CEO Andre Solis (Andre Soelistyo) also said today that the company will not make further large-scale layoffs, but normal attrition will not be ruled out when reviewing the company's cost structure. Last November, GoTo announced that it would cut 1300 jobs, or about 12% of its workforce.

GoTo will reform ride-hailing and e-commerce commissions to ensure that its incentive spending is more targeted and develop higher-margin services, including new loan products. Last week, GoTo also reduced the responsibilities of several core executives and changed its board of directors, in the company's biggest management reshuffle to date.

GoTo also said today that its GTV rose 18% year-on-year to 162 trillion rupiah in the fourth quarter of 2022, and gross revenue reached the upper limit of the company's guidance expectations. In 2022, GTV grew 33% year-on-year to 613 trillion rupiah; gross revenue reached the upper limit of the company's guiding expectations.