GoTo Gojek Tokopedia PT

Hello everyone. This is Joel Ellis, Head of Investor Relations. Welcome to the PT's GoToGoJet Topopedia TBK First Quarter 2026 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 Hume-Ruiz-Tuchayo, our Deputy CEO and Vice President Director, and Sudhanshu Reheja, 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 unordered, consolidated, selected financial information for the three-month period ended March 31, 2026. 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. 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 16,993 rupiah to one US dollar based on the middle rates published by Bank Indonesia as of the end of March 2026. We will also refer to adjusted free cash flows 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.

Hello, everyone, and thank you for joining us today. I'm very pleased to announce that in the first quarter of 2026, Gotoh has delivered a net profit for the first time in our history. We achieved a net income of R171 billion, a substantial turnaround from a net loss of R367 billion during the same period last year. At the same time, we continue our rapid growth. Our annual transacting user base grew to 69 million, an increase of 22% compared to a year ago. And our core GTV rose even higher at 65% year on year. These achievements are the result of a multi-year effort to transform Goto into a profitable business, characterized by a laser focus on our customers and financial discipline. On behalf of the company, I would like to express our thanks and gratitude to everyone who has contributed to our journey. This milestone could not have been achieved without our driver partners and merchants. They are the ones who have powered our platform since day one. Thank you too to our employees, both past and present, and our shareholders who continue to believe and support us in our mission. While we celebrate reaching net profit, there is still a lot to be done. We are, however, entering into a new chapter, and hence, we will be making three adjustments to our strategy. One, we'll place a stronger emphasis on sustainable growth in on-demand services. We are proud of the profitability improvements but growth is not yet where we want it to be, particularly in the mass market sector. Two, having completed our cloud migration, it is now time to look forward. In this next stage, we will execute an AI transformation that will change the way we operate and revolutionize our ability to serve customers. And three, it is time to review our capital allocation and buyback strategy. Our adjusted free cash flow has been positive for three quarters in a row. And as our share price does not currently reflect our intrinsic value, we see an opportunity to return capital to shareholders. Looking ahead, we are maintaining our full-year adjusted EBITDA guidance of 3.2 to 3.4 trillion rupiah. Whilst we have achieved 907 billion rupiah in adjusted EBITDA in the first quarter, we have chosen to be conservative and not raise our guidance in light of ongoing macroeconomic uncertainty. We are closely watching oil and energy prices. Indonesia's fuel subsidies are currently cushioning the impact. but we remain vigilant for broader effects on consumer purchasing power and the potential impact it may have on demand and on credit risk. Regardless of the uncertainty, we will continue to develop products and services that help our customers, be they consumers, travel partners or merchants, and build the capabilities needed to serve them even better. Doing so ensures the best possible outcome for GoTo, no matter how the world changes. Let me now turn to our business units. Our FinTech business continues to grow rapidly in both top line and bottom line. Adjusted EBITDA grew 674% year-on-year, reaching 364 billion rupiah. we are benefiting from operating leverage. As net revenue grew by 58%, while fixed costs increased by only 12%. And we expect this trend to continue. More people are using more of our services and doing so more frequently. Monthly transacting users reach 27.5 million, up 33% year on year. Total transactions crossed 2 billion for the first time, up 84% year-on-year. And CoreGTV exceeded 130 trillion rupiah, up 72% versus a year ago. Our loan book also grew 59% year-on-year to 9.9 trillion rupiah in the quarter as we converted more payment users into lending. This loan book growth has come whilst maintaining our credit risk. For the past four quarters, NTL ratio has remained consistently below 1%. We will continue with this prudent approach, all the more so given the uncertainty in the micro environment. For those who want to know more, our earnings presentation includes disclosure of our delinquency rates, starting from one day past due. Furthermore, we draw additional confidence from two facts. One, we do not lend to users whom we know little about. Our borrowers are almost always existing transacting users in our ecosystem, meaning we have sufficient data to assess their credit risk accurately. Two, the short-term nature of our loans which are on average four months in tenor, allows us to adjust quickly in response to changing micro conditions. Taking a step back, despite near-term uncertainty, the longer-term opportunity remains large. Our monthly transacting user base for payments represents less than 15% of the Indonesian adult population. Over the longer term, there are still a lot of opportunities and the ceiling is high. Now moving on to our on-demand services business. The bottom line is solid with adjusted EBITDA growing 40% year on year to 439 billion rupiah. On the top line, net revenue grew 12% year on year to 3.4 trillion rupiah. However, GTV growth at 4% year-on-year is not yet where we want it to be. Going a little deeper, we continue to do well with affluent users. For example, our very high spender user cohort grew by 18% year-on-year. They are drawn to premium services like our faster food delivery service, GoFood Express, which saw transactions jump 84% year-on-year. In the mass market, we are seeing progress in deliveries. However, lower performance in mobility. Seasonality played a role. Q1 included the Idu Fitri holiday period, and we also saw more days of heavy rain in Greater Jakarta. Fewer business days and an additional work-from-home day also negatively impacted volutes. Nevertheless, Seasonality is not the sole driver. We are working to accelerate growth and have started piloting new features that we will roll out in Q2 and Q3. We are dealing with this and will provide updates in future calls. Moving on to technology, if cloud migration was our focus for 2025, our focus for 2026 onward will be AI transformations. We began making AI investments 18 months ago, developing solutions using more proprietary and commercial models while deploying the technology into our operations. There are now more than 50 AI projects going on throughout the company. And while such projects have been making an impact, it is time to bring them together into a single integrated program. and take it all to the next level. AI has become everything, everywhere, all at once. Our AI transformation will stay grounded to deliver two clear objectives, reducing cost to serve and increasing user conversion rates. Reducing cost to serve started with automating internal processes and replacing third-party software. where the goal is to embed AI throughout our tech stack. Similarly, AI helps us to get more users through the acquisition to retention lifecycle. One way we have been doing this is through personalization. We have recently refreshed the GoPay app with a more personalized interface and ledges based on AI-driven recommendations. We will extend this to the Gojek app as well. These are only snippets with much more to come. In conclusion, we are encouraged by the net income milestone we achieved in Q1. We also acknowledge there is more to be done and remain committed to building a business that delivers sustainable growth and value for all of our stakeholders. Thank you everyone. Thank you so much. I will now hand it over to Simon to talk us through the financials.

Thank you, Hans. Before I review our financial performance, I'd like to first elaborate on two topics that were touched upon by Hans. First, our earnings guidance. In the first quarter, we already achieved more than one quarter of our full-year adjusted EBITDA guidance of 3.2 to 3.4 trillion per year. Under normal circumstances, we would be reviewing our guidance at this point, but given the continuing uncertainties globally, we have decided to be prudent and maintain our current guidance for now and wait for more stability in the Middle East. We started the year strongly, and we believe that if the global conflict does not become overly prolonged and severe, we are confident in achieving and even exceeding the full-year guidance of 3.2 to 3.4 trillion rupiah in adjusted EBITDA. Second, on capital allocation, given our achievement in net income profitability and the strengthening of our cash flows, with adjusted free cash flow reaching 1.3 trillion rupiah in the first quarter, this is a good time to review our stance on capital allocation. Since June 2024, we have in total spent $114 million on share buybacks, and in the first quarter of 2026, we spent $12 million on share buybacks. Going forward, we plan to review our strategy and we look to increase the pace of share buybacks in line with improvements in our adjusted free cash flow. We will, at the same time, maintain a comfortable and reasonably high level of cash to provide us the flexibility to capture opportunities should they arise or to respond to competitive needs. Now turning to our financial performance, my comments will focus on year-on-year comparisons for the first quarter of 2026. The first quarter was a strong start to the year for GoTo, delivering significant top-line and bottom-line growth. Annual transacting users grew 22% 69 million. Net revenue grew 26% to 5.3 trillion rupiah, or 314 million US dollars, driven by growth across all business segments. Cash recurring fixed costs, excluding the cost of credit, increased at a slower rate of 8%. This healthy top-line growth, coupled with positive operating leverage, resulted in adjusted EBITDA increasing by 131% to 907 billion rupiah, or 53 million US dollars. Crucially, this strong operational performance flowed through to our bottom line. For the first time in GoTo's history, we achieved a quarterly net profit of 171 billion rupiah, or 10 million US dollars, marking a significant milestone in our journey. Turning to our segment results. FinTech. continued its strong momentum. Net revenue grew 58% to 1.9 trillion rupiah, or 112 million US dollars, driven by robust user acquisition, strong growth in our payments business, and the continued expansion of our loan book. Outstanding loans expanded by 59% to 9.9 trillion rupiah, or 582 million US dollars. Note that starting this quarter, we have expanded this outstanding loans metric to include merchant loans as well as consumer loans previously. The outstanding balance of merchant loans is not large. It's roughly half a trillion rupiah out of total loans of 10 trillion. Including this would provide a more comprehensive view for investors of our total lending activities. And we have also included historical figures and the earnings presentation to allow for comparison. Consequently, FinTech adjusted EBITDA reached 364 billion rupiah, or 21 million US dollars, reflecting an increase of more than seven times. In on-demand services, we achieved record profitability, demonstrating our ability to manage the bottom line despite seasonal headwinds in the first quarter. Net revenue increased 12%, 3.4 trillion rupiah or 198 million US dollars in the first quarter. By product, mobility and delivery net revenues grew 8% and 13% respectively. This net revenue growth was driven by product mix changes and rationalization of incentive spending. These efficiencies flowed through to our bottom line, driving adjusted EBITDA up 40% to 439 billion rupiah or 26 million US dollars. Turning to e-commerce, we saw continued growth in our service fee revenue from Tokopedia, which increased 33% to 288 billion rupiah, or 17 million US dollars in the first quarter. Driven by our strong overall performance, we generated adjusted free cash flow of 1.3 trillion rupiah, or 74 million US dollars. a clear indication of our strengthening business fundamentals. We ended the quarter with a robust balance sheet holding 23 trillion rupiah, or 1.4 billion U.S. dollars in cash, cash equivalents, and short-term deposits. To conclude, our strong first quarter performance sets a solid foundation for the business, we are fully equipped to execute our strategic priorities and remain committed to driving sustainable growth and expanding shareholder value as we move through 2026. With that, I will turn the call back to Phil.