New Street: GOTO 2Q22 Results - Road to CM Profitable by 1Q24
What's new: 2Q results were largely in-line with expectations where gross revenues and GTV both came in at the high-end of the guided range. The company provided margin breakeven timeline where group contribution margin is expected to turn positive starting in 1Q24. Despite the positive margin outlook, we remain cautious as the path to profitability hinges on execution of multiple drivers including 1) increase monetization rate; 2) increase user cross pollination; and 3) significant reduction in S&M and customer incentives. Overall, execution could be an opportunity (or a concern) whether the group would be able to maintain market share without having to remain aggressive in promotions and subsidies in a price sensitive environment. We maintain our PT at IDR295 and NEUTRAL rating.Analysts:
Jin Yoon
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