GoTo Gojek Tokopedia PT

Hello, everyone. This is Joel Ellis, Head of Investor Relations. Welcome to the PT GoTo Gojek Tokopedia TBK full year and fourth quarter 2025 earnings conference. Please be advised that today's conference is being recorded. On today's call, Hans Patuol, our 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 Catherine Hindra Suchayo, our Deputy CEO and Vice President Director, and Sudhanshu Raheja, our Group COO, along with members of GoTo's Board of Directors. 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 December 31, 2025 and 2024. We have also submitted and published our consolidated, audited financial statements as of and for the 12-month ended December 31, 2025. 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 US dollar equivalent by applying an exchange rate of 16,782 rupiah to one US dollar equivalent. based on the middle rate published by Bank Indonesia as of the end of December 2025. We will refer to pro forma 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 forma figures assume that Tokopedia and GoToLogistics were deconsolidated on January 1, 2024. We will also refer to adjusted free cash flow, which is adjusted operating cash flow minus capital expenditures. 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 Hans.

Thank you, Joel. Hi, everyone. Good evening, and thank you for joining us today. This is my first earnings call after my appointment in December. It is both humbling and a pleasure to be here. I'm also happy to share that 2025 was a record year for GoTo. Adjusted EBITDA in Q4 alone reached 672 billion rupiah or 40 million US dollars, 106% year on year increase. For the full year, adjusted EBITDA reached 2 trillion rupiah or 120 million US dollars, a 544% year-on-year increase. This meant that we exceeded our 2025 guidance and we do see momentum continuing into 2026. Hence today, we are announcing 2026 adjusted EBITDA guidance of 3.2 to 3.4 trillion rupiah, or between 190 to 200 million US dollars, an approximately 60% year-on-year increase. Topline growth in 2025 was also strong. Core GTV in the fourth quarter reached 124 trillion rupiah, or $7.4 billion, up 57% year-on-year. For the full year, core GTV reached 400 trillion rupiah, or just shy of $24 billion, up 49% year-on-year. Annual transacting users also increased 24% year-on-year. reaching 66 million, a quarter of Indonesia's total population. Looking back over the last few years, we have moved from a period of high cash burn to becoming adjusted free cash flow positive. And over that time, we learned that if we are to achieve the profitable growth we aspire to, we must focus on solving real on the ground problems for our customers. To that end, we serve four distinct customer groups. Affluent consumers who seek speed and convenience, and mass market consumers who look for cost-effective solutions. At the same time, it is important that our driver partners and merchants prosper with us as well. To drive all of this, And to do so without relying on subsidies, we have to innovate and build core capabilities that will allow us to deliver these solutions for our customers. Turning now to our FinTech business, GoPay. We have reached an inflection point where operating leverage has begun to kick in. We are scaling users and transactions in payments expanding our lending book with discipline underwriting while managing our underlying cost base. This is reflected in our adjusted EBITDA. We have gone from negative 467 billion rupiah to positive 497 billion rupiah. or in US dollar terms, from negative 27.8 million in 2024 to positive 29.6 million in 2025, which is a swing of 57.4 million US dollars. Fourth quarter 2025 adjusted EBITDA was 226 billion rupiah or 13.5 million US dollars. This profitability was fueled by strong growth across CoreGTV, transactions, and also users. CoreGTV in the fourth quarter grew 62% year on year to 116.3 trillion rupiah, or just shy of 7 billion US dollars. And for the full year, it grew 54%. to 370 trillion rupiah, or 22 billion US dollars. Engagement is also growing. In the month of December 2025, we crossed 600 million transactions for the first time, up 76% year-on-year. GoPay app also continues to acquire users. Fourth quarter monthly transacting users growing 30% to 26 million and annual transacting users growing 36% from 42 million to 57 million. We are also growing our lending business. Our consumer loan book grew 68% year on year. reaching 8.8 trillion rupiah, approximately half a billion US dollars by December, beating our target of 8 trillion rupiah. This momentum is built on three elements. First, we recognize that FinTech in Indonesia is fundamentally a mass market opportunity, as a large share of the population is still underserved by the traditional financial system. According to the World Bank, half of Indonesians remain unbanked and access to formal credit is even more limited. With millions of consumers already active across our Gojek platform, we are well positioned to bring users into financial services through payments and then expand responsibly to credit. Second, we invested early in the capabilities needed to solve customer problems at scale. For example, back in 2021, we re-architected our payment rails and integrated our FinTech systems. A year later, we then developed our credit scoring capability, enabling us to launch and scale the lending business. Then in 2023, we followed that up by releasing the standalone GoPay app, which gave us a new channel to reach mass market consumers, expanding our total addressable market. Since launch, the GoPay app has been a powerful acquisition tool, driving growth across payments and supporting the continued expansion of our lending business. Third, disciplined risk management is the foundation of our growth. Over the past two years, we have expanded our loan book by $6.9 trillion. including 3.6 trillion in the past year alone, while keeping credit quality within a comfortable range. We can do this because our technology for KYC, fraud detection, scoring, collections, and other capabilities work together as one integrated backend system, using our data and AI to manage risk at scale. And because our loans are mostly small and short-term, we can adjust quickly to changing conditions. Looking forward, we see significant upside for GoPay. As mentioned, half of Indonesia's population is underbanked and lacks access to formal credit. At the same time, lending penetration within our ecosystem remains at an early stage, providing room for discipline expansion over time. Turning now to our on-demand services business, Gojek. 2025 was the year of improving bottom line performance. Our adjusted EBITDA margin expanded to 2.3% in the fourth quarter, up from 1.6% a year ago. For the full year, it reached 2.1%, nearly doubling the 1.1% in 2024. Consequently, adjusted EBITDA grew 55% to 415 billion rupiah or 24.7 million US dollars in the fourth quarter and 105% year-on-year to 1.4 trillion rupiah or 83 million US dollars for the full quarter. GTV for the fourth quarter was 17.7 trillion rupiah or 1.1 billion US dollars, up 3.8%, and reached 66.5 trillion rupiah or 4 billion US dollars for the full year, up 7.5%. This is not quite where we need growth to be, and I'd like to discuss this next. Starting with our customers, the needs of mass market consumers differ significantly from those of affluent consumers. Affluent users demand fast and convenient services. The mass market want lower prices. We are doing well in the affluent market, but have more work to do in the mass market. In the affluent market, our suite of premium offerings have delivered increases in transactions, GTV, and margins. For example, our premium GoFood Express product, which we have mentioned in previous calls, has reached its highest level of GTV and orders since launch in the fourth quarter. AI has also played a key role as we advance our search and recommendation capabilities, increasing discovery, conversion rates, and basket size. We also continue to upgrade our service quality. Throughout 2025, we saw improvements in delivery and pickup times across our premium products, meeting the affluent consumers' demand for speed and convenience. In the mass market, consumers are anchored heavily into value. we have been adjusting our business in line with this shift and believe that as was the case in FinTech, the future lies in building the right capabilities. Two such capabilities we are working on are next generation pooling and zone operations. Regarding pooling, we are upgrading our allocation engine to better aggregate demand into pooled deliveries. This allows us to serve significantly higher volumes and reduce price to the consumer. To complement this, our second focus is zone operations. We are moving toward a high density localized zone model that optimizes for shorter distances in areas of greatest demand. By aligning our products with these specific geographies, we can offer low cost options to our customers more sustainably. Both of these capabilities will take time to implement at scale. But as they roll out, the impact on affordability will be significant and spur growth across our ecosystem. A key beneficiary of this will be our driver partners. Driver partners are the backbone of our platform. We announced last week 400,000 eligible driver partners. are receiving Hari Raya bonus ahead of the Labaran or Eid holidays. We have allocated this bonus based on the principle that those who drive more should receive more. Better driver income leads to higher loyalty, more consistent supply, and a better consumer experience. This is why we do not view their welfare as a cost-light item. Rather, it is a disciplined investment in the health and sustainability of our ecosystem. In conclusion, we are focused on solving fundamental problems for our customers. By prioritizing customers in this way, success for our shareholders will follow. Thank you so much. I will now hand over to Simon to go through our financials in more detail.

Thank you, Hans. My comments will focus on year-on-year comparisons for the fourth quarter and full year 2025. Full year 2025, year-on-year growth will be on a performer basis to facilitate like-for-like comparisons. I will start with the results at the group level and then cover segment results, and I'll end with some commentary on our outlook for the full year 2026. 2025 was a strong year for GoTo, in which we delivered significant growth in both the top line and bottom line. Net revenue grew 24% to 18.3 trillion rupiah or 1.1 billion US dollars, driven by growth across all business segments. Cash recurring fixed costs, excluding cost of credit, increased at a slower rate of 9%. Topline growth together with positive operating leverage resulted in adjusted EBITDA increasing over six times to 2 trillion rupiah or 120 million US dollars. Moving to fourth quarter performance, we delivered solid growth and significant profitability improvement. Net revenue showed solid momentum growing 19% to reach 5 trillion rupiah or 300 million US dollars driven by growth across all business segments. Cash recurring fixed costs, excluding cost of credit, increased at a slower rate of 4%. Again, driven by the top line and positive operating leverage, adjusted EBITDA increased 106% to 672 billion rupiah or 14 million US dollars. Now turning to our business segment results, fintech had a stellar year. Net revenue in the fourth quarter grew 45% to 1.7 trillion rupiah, or 100 million US dollars, underpinned by strong growth in users and engagement. Our consumer payments and consumer lending businesses both grew strongly, with consumer loans outstanding, increasing 68%. to 8.8 trillion rupiah, or 523 million US dollars, beating our guidance. FinTech adjusted EBITDA reached 226 billion rupiah, or 13.5 million US dollars, from just breaking even one year ago. For the full year, adjusted EBITDA was 497 billion rupiah, or 29.6 million US dollars, marking the first full year of profitability for FinTech. On-demand services delivered record profitability. Net revenue increased 10%, hitting 3.4 trillion rupiah or 202.4 million US dollars in the fourth quarter. Breaking this down, mobility net revenue grew 15% and delivery net revenue increased 8%. This upward trajectory in net revenue was largely supported by the optimization of our product mix, higher advertising revenues, and disciplined incentive spend. adjusted EBITDA increased 55% to 415 billion rupiah or 24.7 million US dollars in Q4. For the full year, ODS adjusted EBITDA increased 105% to 1.4 trillion rupiah or 83 million US dollars and adjusted EBITDA margin just about doubled to 2.1% of GTV. In e-commerce, our service fee revenue from Tokopedia grew steadily, reaching 193 billion rupiah or 11.5 million US dollars in the fourth quarter. And for the full year, it reached 820 billion rupiah or 48.9 million US dollars. As a result of our strong performance in the fourth quarter, we generated adjusted fee cashflow of 748 billion rupiah or 44.6 million US dollars. This milestone serves as a strong testament to our strengthening business fundamentals. Moving to the outlook for 2026, as Hans mentioned, we are today introducing guidance for the full year 2026 as follows. Group adjusted EBITDA of 3.2 to 3.4 trillion rupiah. FinTech adjusted EBITDA of 1.4 to 1.5 trillion rupiah. And ODS adjusted EBITDA of 1.7 to 1.8 trillion rupiah. This is subject to macro economic conditions. For example, we are closely monitoring oil prices as a result of developments in the Middle East, as fuel costs are an important consideration for our ecosystem. Historically, we have always been able to manage periods of volatility in energy prices and will continue to respond as needed to changing conditions. In closing, we are very well positioned to execute on our strategic priorities, and we are fully committed to delivering both sustainable top-line growth and expanding profitability for our shareholders in the year to come. With that, I will turn the call back to Joel.