GGTKY Q3 2025 Earnings

Hello, everyone. This is Joel Ellis, Head of Investor Relations. Welcome to the PT GoTo Gojek Tokopedia TBK Third Quarter 2025 Earnings Conference. Please be advised that today's conference is being recorded.

On today's call, Patrick Walluio, 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, Hans Patuo, our Group Chief Operating Officer and President of On Demand Services, and Sudhansha Raheja, our President of Financial Technology Services. 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 September 30, 2025.

We have also submitted and published our consolidated financial statements as of and for the nine months ended September 30, 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 16,680 rupiah to one US dollar based on the middle rates published by Bank Indonesia as of the end of September 2025. We will also refer to adjusted free cash flow, which is adjusted operating cash flow minus capital expenditures.

Further, we will refer to adjusted pre-tax profits, which is calculated starting with loss for the period and adding back income tax expenses and share of net losses from PT Tokopedia. 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 Patrick.

Hello everyone, and thank you for joining us today. I am proud to announce that this quarter, For the first time, our business generated an adjusted pre-tax profit amounting to 62 billion rupiah or 3.7 million US dollars. We also achieved an all-time high adjusted EBITDA of 516 billion rupiah or 30.9 million US dollars, an increase of 239% year on year, as well as adjusted free cash flow of 247 billion rupiah or 14.8 million US dollars.

Given this rapid progress, we are raising our full year adjusted EBITDA guidance from 1.4 to 1.6 trillion rupiah to 1.8 to 1.9 trillion rupiah or 108 to 113 million US dollars. Both of our major business units, FinTech and on-demand services are on track to comfortably exceed their individual guidance as communicated over previous quarters. Group-level growth has also been strong, with core GTV growing 43% year-on-year to 102.8 trillion rupiah or 6.2 billion US dollars.

Annual transacting uses in Indonesia are up 33% year-on-year to 61.1 million, amounting to around 30% of the adult population of the country, demonstrating the sheer scale of our ecosystem. These results reflect continued progress on our strategy to deliver consistent, reliable, and cost-effective solutions for consumers while strengthening our position as a preferred partner to driver partners and merchants.

Turning to fintech, we achieved a record quarter with adjusted EBITDA reaching 136 billion rupiah or 8.2 million US dollars, an increase of 201 billion rupiah or 12.1 million US dollars year on year. We also saw 48% year-on-year growth in core GTV as transactions increased by 54% year-on-year. Fintech is a powerful growth engine for Gotoh. Indonesia's digital payments and everyday financial services have a huge total addressable market, which is significantly under-penetrated, meaning we have much further to run.

Our strategy is straightforward. Grow user numbers and user frequency at scale through the GoPay app. Then extend appropriate credit to active users on the same integrated platform. The GoPay app is proving to be a resounding success as a driver of growth.

We are winning in the affluent market, ranking as the number one e-wallet with multiple premium merchants across categories such as travel and streaming. including Netflix, for example, where we are the number one e-wallet in Indonesia. As this solid foundation among affluent users is firmly in place, the GoPay app's core focus is on driving growth among mass market users, unlocking the millions of consumers who stand to benefit from Indonesia's digital economy.

Success in the mass market is driven by the utility of the GoPay app with features like free transfers and queries providing users with services that make a real difference to their lives. We are seeing great success in this space as we surpassed 500 million transactions in a single month for the first time in September, with monthly transacting users rising 29% year-on-year to reach 24.2 million. A key driver of this success is the work we are doing to keep GoPay top of mind among consumers.

Daily check-ins and over 400 mini games, including GoPay Pet, a playful virtual pet experience, now rates 24% of monthly active users. Mini games are an increasingly useful tool for retention and everyday usage, and we will continue to focus on this over the coming quarters. As mass market adoption grows, so too does our lending business, a key driver of profitability for the group. The consumer loan book expanded 76% year-on-year to 7.6 trillion rupiah or 457 million US dollars, the largest quarterly increase on record, putting us firmly on track to exceed our full-year target of at least 8 trillion rupiah or 480 million US dollars.

This momentum reflects the power of our ecosystem flywheel. As more users transact through group pay, they gain access to seamless, responsible credit and financial products. That said, fintech's growth is about more than just numbers. It's about enabling participation and trust.

We work hard to maintain this by actively discouraging illicit use cases. Ensuring GoPay remains a safe, trusted wallet for users as we build an ecosystem that rewards engagement, creates opportunity, and supports financial inclusion across Indonesia. Turning now to on-demand services. We delivered another record quarter of profitability in this segment.

As suggested, EBITDA grew 115% year-on-year, reaching 336 billion rupiah or 20.1 million US dollars, a new all-time high. However, core GTV growth slowed, rising only 2.4% year-on-year to 16.7 trillion rupiah or 1 billion US dollars, reflecting a tougher operating environment. We recognize that growth is not currently where we want it to be and improvements must be made. we remain absolutely committed to protecting and growing our market share while accelerating growth sustainably.

This means lowering the cost to serve, thereby generating more demand and increasing our scale. Our strategy for achieving this can be divided into two parts. Firstly, creating differentiated products for both affluent and mass market segments. And secondly, unlocking further ecosystem synergies.

Turning to the former, we know our offline users value speed and convenience, whereas our mass market uses value price. We have started building different products to serve its segment. A good example is the two-wheel commuter strategy we implemented in the third quarter. Through this initiative, we implemented everyday low prices at transit hubs for those who want predictable fares and are prepared to wait longer.

At the same time, we reduced discounts and improved prioritization for use cases that are time sensitive and convenience driven. Early results are promising with two wheeler daily commuter transactions in September growing 10% versus June. In addition, we have improved the speed and reliability of our services that cater to the affluent segment. For example, reliability in our four wheel services has increased with booking completion rate up two percentage points versus June.

Delivery times for GoFood have also improved with average actual time to arrival in September, 7% faster versus June. Hence, while our mass market offerings focus on lowering cost to serve, our affluent offerings seek to continuously differentiate based on speed and reliability. A third example of our product differentiation strategy is the work we are doing with merchants, another key customer group. Our GoFood merchants have varying growth strategies and we have been developing promotional tools to help them grow in the way that fits them best.

This has resulted in advertising revenue reaching 2% of the GMB as well as a 70% year on year increase in merchant funded promotions. Turning now to the second part of our strategy, ecosystem synergies. Whilst we have improved synergies over the years, recent reviews make us believe that even more is possible. Our goal is to drive growth by expanding our fleet, making it the best, biggest, and fastest delivery network in Indonesia.

In this way, we can generate economies of scale that will lower our cost to serve, provide better pricing for our consumers, and generate more demand. This will drive income for our driver partners and merchants in a sustainable way. We have recently launched an initiative on this and will provide details of our progress over future quarters. As a result of our early successes with these strategies, we expect that the third quarter will be the bottom in terms of GDP growth, with improvements taking shape from the fourth quarter onwards.

At the same time, we will continue to monitor our bottom line ensuring we are growing through product innovation, ecosystem synergies, and lowering the cost to serve, making us less dependent on incentive spending.

Turning to technology, throughout Gotos, we are progressively integrating AI across the product lifecycle, from research and customer validation, through design, development, testing, deployment, and go to market. This will ultimately enable us to substantially improve user experience while reducing time to market and costs. Customer service is a clear area where AI is providing benefits. Automation has helped lift food customer satisfaction by 6 percentage points since the start of the year, as initial response times are reduced and resolutions are reached quickly.

Pilots in our collections operations are also delivering better connection and repayment performance than third-party tools at a lower cost to serve. In addition, we are now training our go-to large language model. It is more efficient using fewer GPUs, yet stronger than our prior 70 billion parameter model, and integration into current and upcoming products is underway. We are also rolling out an internal platform that gives teams standardized access to GPUs, models, and reusable AI components, lowering costs and increasing development velocity over time.

Taken together, all these investments compound, resulting in improved customer experiences, lower unit costs, and the ability to iterate faster over time, turning technology progress into durable operating leverage for both fintech and on-demand services. In summary, as we look ahead, our focus remains clear. To deliver consistent, delightful, and cost-effective solutions to consumers while being the partner of choice for driver partners and merchants. This is enabled by our drive to build world-class operations underpinned by world-class technology that is fast to market, reliable, and cost-efficient.

With nine consecutive quarters of core GTV growth, six quarters of adjusted EBITDA expansion, as well as positive adjusted free tax profit and adjusted free cash flow, we have built a resilient foundation for our long-term value creation. Our team is working with a single goal to make Goto indispensable in the daily lives of every Indonesian. I am very proud of what we have achieved so far and even more confident about what lies ahead.

I will now hand over to Simon to walk through the financial details. Thank you, Patrick.

In the third quarter, we delivered strong top-line growth and record profitability for the group. Group net revenue maintained strong momentum, growing 21% year-on-year to 4.7 trillion rupiah, or 284 million US dollars, driven by growth across the segments. In fintech, net revenue grew by 55% year-on-year to 1.5 trillion rupiah or 92 million US dollars. This is fueled by both core GTV growth and loan book expansion of 76% year-on-year to 7.6 trillion rupiah or 457 million US dollars as the ecosystem continues to scale.

In on-demand services, net revenue grew by 10% year-on-year to 3.2 trillion rupiah, or 192 million US dollars, with mobility and delivery at 11% and 10% respectively. Net revenue growth was driven by growth of advertising revenue, disciplined incentive spend, and changes in product mix. In e-commerce, service fee revenue from Tokopedia reached 211 billion rupiah, or 12.7 million US dollars in the third quarter, showing solid growth year on year.

Net revenue growth translated into bottom line improvement, enhanced by disciplined cost controls, resulted in recurring cash expenses growing slower than revenue. As a result, group adjustments percent year-on-year to 516 billion rupiah or 30.9 million US dollars, making our sixth consecutive quarter of sequential improvement. On a segment level, fintech-adjusted EBITDA improved by 201 billion rupiah or 12.1 million US dollars year-on-year to 136 billion rupiah or 0.2 million US dollars in ODS adjusted EBITDA rose 115% year-on-year to 336 billion rupiah or 20.1 million US dollars, the fifth consecutive quarter of sequential improvement.

Group adjusted EBITDA increased coupled with lower share-based compensation costs drove up EBITDA by 455 billion rupiah or 27.3 million US dollars year-on-year, to 369 billion rupiah or 22.1 million US dollars, positive for the fourth consecutive quarter. Improvement in operation results allowed us to book an adjusted pre-tax profit of 62 billion rupiah or 3.7 million US dollars for the first time in the group's history. And as a reminder, this adjusted pre-tax profit is net loss for the period, adding back income tax expenses and the share of net losses from PT Tokopedia.

We also generated positive adjusted fee cashflow defined as adjusted operating cashflow, less capital expenditures of 247 billion rupiah or 14.8 million US dollars for the quarter, a clear indicator management. Our balance sheet remains solid. As of September 30th, 2025, we held 18 trillion rupiah, or 1.1 billion US dollars in cash, cash equivalents, and short-term deposits, maintaining the flexibility to invest in technology, product innovation, and long-term growth initiatives.

We remain highly confident of our ability to meet our revised full year 2025 guidance, positioning GoTo for sustainable, profitable growth in the years ahead. With that, I'll hand the call back to John.

Thank you, Simon. We'll now open up the call for questions. If you do wish to ask a question, please use the raise hand function on Zoom to respond. to ask the question, please use the raise hand function.

The first question is from Ari Yaya at Macquarie. Ari, please unmute yourself and please go ahead.

Okay, thanks, Joel, for taking my questions. And hi, Patrick, Simon, and Goto team. Well done for the strong gesture beta. So a couple of questions today.

So first on the on-demand services. So it looks like GTV growth was softer than expected in the third quarter. Can you please discuss the main drivers for this? And do you see the same trends continuing in the fourth quarter?

And then second on FinTech, how confident are you in sustaining the current loan book growth and stable cost of credit along with delinquencies? And if you do, what will be the leading indicators that are giving you comfort at this stage? I'll start here. Thank you.

Thank you, Henri. I will let Hans, our Chief Operating Officer and the Head of On Demand Services, to address your question about ODS GDP growth in third quarter and also the outlook in the coming quarter or fourth quarter. And after that, I will have Sudhanshu, the Head of GoTo Financial, to address your question about loan book growth because of credit and delinquencies. Hans.

Thank you Pat.

Thank you Ari for your question. We agree that the growth in GTV is not where we want it to be. And as shared previously in the call, we do have a clear plan that we are executing to address this. To answer your question, the softness is coming from two primary drivers.

One is a weaker macro backdrop, and the second is more intense competition, particularly in the more mass market segments. It's also worth noting that we are comparing against a higher base since the ODS GTV in Q3 of 2024 went up by about 25%. Nevertheless, if we take a look at Q4, October month today is looking pretty good. It's showing a positive trend.

So we're expecting an improvement from Q4 all the way to 2026. And so we expect the year-on-year growth in Q4 and beyond to be higher than that in Q3. Hope that answers your questions.

Thank you. Thank you, Bud. Thanks again for the question, Dari. So on the question on loan book growth and delinquencies, maybe let me get started with confidence on where are we going.

So I feel very confident in our ability to maintain both the growth as well as the quality of the loan book. In Q3, we delivered very strong profitability overall while steadily growing the loan book. In fact, we're on track to exceed our earlier guidance of 8 trillion in the loan book and 300 billion on adjusted EBITDA. Overall, this quarter, delinquencies are slightly higher, but are very comfortably within our acceptable risk limits.

And just to add, we provision very conservatively for these. And these are already reflected in the adjusted EBITDA numbers that you see here. Now, in terms of the growth in the coming quarters, I think there are four key factors which define how well can we do. The first is the ecosystem.

We lend to users with a rich history in the GoTo ecosystem, which helps both keep our risk low and gives us deep transactional data so that we have a much better sense of the quality of the users. It also helps keep CAC for new acquisition incredibly. Now, because we see growth on users as well as transactions, I'm very hopeful that the growth on lending can also continue within the ecosystem.

The second key factor is our ability to do real-time underwriting. Now, our credit models use real-time signals like recency, frequency, spending patterns, et cetera. These data points help us assess both capacity and intent, and we are seeing more and more users coming and using our products, which makes me very confident that we can continue doing a better job. The third is a dynamic portfolio, as well as a progressive credit expansion.

So most of our loads, in fact, are short tenure, and we can adjust credit limits and pricing on the fly. This helps us control the risk while maintaining our discipline growth. So overall, Given the key factors, I feel we have a lot of users who are within the ecosystem that we can still lend to. And that number of people that we can access keeps increasing.

We keep seeing higher transactions from those users, which means we have a much better understanding of their spending patterns. And based on this, I expect growth to continue well, both on the loan book as well as on the quality in the coming years.

Thank you. Thank you, Sudhanshu, and thank you very much, Ari, for your question. Much appreciated. The next question comes from Ferry Wong at Citi.

Ferry, please unmute yourself and go ahead and ask your question.

Hi, thanks, Joe. Yeah, congratulations, Patrick, and all the management team, Simon and everybody. Yeah, two questions from me. One is with regards to your ODS businesses looking ahead for 2026, how are you viewing your current market share position?

And can you please elaborate on the initiative and the synergies, including those mentioned on the call that you are implementing that you will allow to compete effectively and drive re-acceleration in terms of growth. And then the second question is on your long-term strategy for GoPay partnership, especially in increasing transaction and user volume. Can you please elaborate more on this?

Thank you. Thank you, Ferry. Hans, can you please answer Ferry's question? but our current market share position and our confidence and initiatives to re-accelerate growth.

Sure. Thank you, Pat. Hi, Ferry. Thank you very much for your question.

But we have always defended our market share and we will continue to do so. And while we have ample cash in the bank, our strategy is not to try and subsidize our way out of this. And going back to some of the initiatives that was mentioned at the call, we will grow sustainably through our two-prong approach. First is we will create even more differentiated products for affluent and mass market segments, because these two segments value different things.

And our products for the affluent segment, like GoFood Express Delivery and GoCar Comfort, are doing well and continue to grow. For the mass market segment, as mentioned earlier, we are seeing early traction with our new commuter offering, particularly for the two-wheel product. This provides very predictable value-oriented pricing at key transit hubs. And so far, from what we have seen over the past two months, we have seen that this strategy has increased both GTV and profitability.

So we're going to try to replicate this and look for more of these types of initiatives moving forward. The second part of our two-pronged strategy is to grow by capturing even more ecosystem synergies. Maybe put it this way, we have a lot of services inside Goto and even within Gojek itself. And they ultimately serve many of the same customers.

So bearing that in mind and looking at it Gojek-wide or even Goto-wide, we have identified quite a bit of opportunities where we can both lower our customer acquisition cost and also increase transaction frequency of existing customers. Though, yes, some of these initiatives may take time to scale. So far, the results for the past couple of months have been very encouraging. And we still believe strongly that the year-on-year growth of VTV will continue to accelerate in Q4 and onwards.

Thank you.

Thank you, Hans. Sudhanshu, can you please address the questions about co-pay partnerships as part of our long-term strategy?

Sure, Pat. Thank you. So now, when it comes to partners, our philosophy is that we are customer-led in terms of how we design products and partner-led in how we scale. We work with large platforms to understand their users and to co-create products that meet their needs and then work with the partners to scale the products in ways that are synergistic for both parties.

The goal is always to build long-term value for both ecosystems while delivering real benefits to the customers. Now, for example, we launched the TelcomSell wallet by GoPay, which is now the default wallet inside the MyTelcomSell app. It not only makes payments seamless for all users, but also allows them to receive refunds instantly. Another example is our recently launched co-branded eSIM with Telkomsel.

It has the fastest onboarding experience in the country and very affordable renewal prices. It just went live in the Gopay app. It is timely because as you would know, there's a big change in eSIM services that are now available in China. which means there are very strong signals of a eSIM revolution coming, even for the low-end smartphones.

And we are ready to figure out how do we tackle that. Now, based on these examples, what happens over time is that these co-branded partnerships help us expand beyond Goto's ecosystem to places where consumers are already spending their time. Each such integration compounds engagement and data, allowing us to personalize offers, improve credit models, increase transaction frequencies. The long-term goal is to make GoPay the default wallet for Indonesia, which is trusted, ubiquitous, and seamlessly connected across every digital and offline experience.

Thank you.

Thank you.

Thank you, Sudhanshu.

Thanks, Sudhanshu. And thank you, Ferry, for your question. Very much appreciate it. Okay, we will take our next question from Ryan Winipta from Indo Premier.

Ryan, please unmute yourself and go ahead.

Yeah. Hi, Joe and Guto team. Congratulations on a very strong result for the third quarter. Just wanted to ask a few questions.

I think the first one could be about the potential regulatory pressures. I think this is related to the ODS. Just wondering whether there's going to be another pressure on the take rate as well as the driver income as we have seen in the media. And my second question, I think, is related to, I think, in terms of the load.

I saw that in the balance sheet there's additional new loan that has been taken up recently. Is this going to be used to basically respond to the intensifying competition in ODS? Yeah, that's all of my two questions. Thank you.

Thank you, Ryan. On your question about regulatory pressures, especially on take rates and driver income, I would like to share with the audience that we have been having constructive discussion with the regulators, the government, not only recently, but this is a discussion that we have been having on a pretty ongoing basis. Last year during the holiday, the government and we came up with the holiday bonus scheme.

which essentially addresses some of the issues about the status of our drivers and then how we incentivize and reward our drivers for their good performance over the year. And this constructive discussion continues today. We share the government's view that we need to do our best to improve driver's income and welfare. And our view is that the best way to improve our driver's income is to increase volume of transactions on our platform and also to drive efficiency and productivity.

That's something that we continue to focus. We are experimenting with new products that are addressing some of this take rate concern. And at the same time, to make sure that our products continue to be affordable for the majority of our consumers and drive traffic, drive revenue. I think the...

I would say that... um this this this discussion will continue i think both sides all sides understand its other position and we also have the objective to make sure that the industry is sustainable because there are millions and millions of people who rely their livelihood on on these platforms, including ours. And our success is also our driver partner success and also the government success. So I think our interests are light.

In regard to our new loan facility, I will hand it over to Simon to address.

Thank you, Ryan, for the question. So reflecting our improved financial capacity, last month we put in place a committed four-year loan facility of 4.65 trillion rupiah. That's 279 million US dollars. Now, the primary purpose was to refinance our prior facility of the same size.

And this prior facility was maturing in November of 2025 this year. So we want to ensure that we continue to have a multi-year liquidity to support the business. Just to give you an update, a small part of this new loan facility has already been used to repay the outstanding amount of the previous facility. And the remaining facility will be used for general corporate purposes, which does include investments and also working capital uses.

As of the end of September, we have drawn down around 363 billion rupiah or 22 million US dollars from this new facility. So overall, we have an ample cash balance, as I mentioned earlier, of 18 trillion rupiah. That's about 1.1 billion US dollars. And we will remain prudent in our capital allocation.

Thank you, Ryan.

Thanks very much for your question, Ryan. The next question on the line will come from Adrian Joseph from Mandira Securitas. Adrian, please go ahead.

Thanks Joel and congrats Patrick Simon for the great results. Two questions for myself. First one is how are you managing the operational and margin implications of serving both the mass market and premium segments in ODS? What impact have you seen from the commuter strategy?

The second question is what realized value have you seen from your recent investments in tech developments, specifically in the LLMs and also the cloud migration to the overall ODS and GTF business. Thank you.

Thank you, Adrian. Hans, can you address Adrian's question about how we manage our margins as we are addressing the mass market and premium segments in on-demand services. And also maybe give a little bit of a highlight of the impact of our committed strategy or the success of our committed strategy.

Okay. Will do. Thanks, Matt. Thanks, Adrian, for the question.

So on our commuter strategy, we have been implementing it in our two-wheel product for the past couple of months. And so far, it has been very, very promising. We're seeing top line and bottom line increases simultaneously as a result of this strategy. And we will continue to scale this up throughout the country and also across multiple products.

Zooming out to the larger question of how do we serve the mass market and the premium segments and the operational and margin implications, as you mentioned, I think we do this by managing two very distinct and product-led playbooks, right? One that is for affluent and one for mass market because they both are looking for different things. They are, however, built on the same core principles, right? Which is how do we achieve product market fit that is specific for that particular segment and also leveraging our entire ecosystem.

So for example, on the premium segment, we're looking at use cases where users require speed and high quality of service. And so our premium affluent products and experiences deliver that, though we will charge more for this differentiated value. We will also start to continue to cross out pretty aggressively between one affluent use case on speed and quality to another. On the mass market segment, though, the playbook is different.

These use cases, our users are looking for price. And so to meet their needs, we are creating low price offerings. However, these low price offerings are not just by pure discounting. They are actually built on top of lower cost to serve, which will make such offerings sustainable, especially in a market where there is a very, very large mass market segment.

And customers then typically will have to accept a trade off such as a longer wait times. We're also looking into a deeper ecosystem advantages with GoPay, particularly for mass market segment. As a GoPay and GoPay app does have a large existing base now of mass market users. Now, regardless of premium segment or mass market, both of these playbooks, though, are built on the same core delivery infrastructure.

So we're then leveraging our single delivery infrastructure to increase the density and the technology stack to serve both of these segments. operational costs low. So I guess net-net, what we're doing is running two different playbooks. They are each differentiated by our users' needs at a fairly granular level.

And our delivery for these two segments are leveraging the same fulfillment capabilities and therefore able to leverage internal synergies. I hope that answers the questions. Thank you.

Kat, can you address the question about our investments in tech development of LLM and cloud migration and the impact to the business?

Sure, Pat. Hi, Adrian. Good to hear from you again. Thank you.

Thank you for the question. So yeah, very happy to share what we have been doing in our tech capabilities. So let me try to address your first question about what has the recent cloud migration that we did, how it has been impacting us, right? So as you know, we shared probably in the past a couple of earning call as well that we believe the cloud migration that we recently finished is one of the most complex in the world as attested by the provider, right?

One thing I would like to highlight here, actually, not only we completed on time, but also under budget. But the most important part of this achievement, if I may share, is actually more like how this achievement helped to boost our team, our technology team confident in term of our capability to build a world-class technology capabilities. I think this has been really, really great kind of a milestone for us as a company.

And then you see how it's really affect the morale of the team as well. On top of that, what we would like to share, happily to share, is that we have exceeded our saving target of 50% by zero on our cloud expenses so far. This is very, very important. Why?

I think as Pat mentioned, Hans hinted on that as well, we believe the key to our future growth is our ability to continue to lower our cost to serve. We believe this is one of the most critical, if not the most critical, our lever for growth, right? Because by us enabling ourselves to lower our cost to serve, this will allow us to reach and serve more users or increase the frequency of the users because our product inherently, fundamentally become more affordable for more and more of our customers.

This is really what this cloud migration also greatly enabled. Lastly, on this one, is the speed. Obviously, we don't do the cloud migration only for the cost, even though that's a really, really big component of it.

But I think what we've seen throughout the process of the migration itself, as well as now months after the migration completed, what this process has enabled us is two things. Number one, while we are migrating, it helped us to do a lot of restructuring, for lack of better words, right? to make our system become more, how do I say it, efficient, for lack of a better word, faster.

And now months after the cloud migration finished, we see it as well in our products today, the load time, everything. We see those impact that improve the customer experience as well. That's on the cloud migration. The second question you have is about LLM, of course.

Every company is now talking about AI, LLM, and we shared about our LLM model as well. Yes, we have been strategically deploying AI capabilities to drive innovation and efficiency across our entire business. Recently, actually, we're launching a new model as well. New model LLM is even more powerful than our previous 70 billion paramotor model at the cheaper price.

But one thing that we would like to share today, this is, of course, the beginning of this, but we are embarking what we call the top-down and bottom-up AI initiatives across the whole organization. What do we mean by that? Basically, we are integrating it across the whole business. On the top-down, for example, we are rolling this model to use on our loan collection practices, loan collection processes.

I'm happy to share the early result actually shown a very, very promising results. We'll keep you updated on that. On top of that, we also have our new AI-driven customer service. This is to improve our customer experience as well.

But on top of that, happy to share that we're also doing what we call in the organization, the bottom-up AI. This is basically we are encouraging everyone in the organization to come up with ideas, what kind of AI use case that can be used, that can be leveraged to improve the to improve the internal processes as well, right? So we as a company become more efficient as well.

This is important why we believe AI is a mindset, right? We are embarking this. If everyone in the whole organization think of it that way, How can I leverage myself better? We believe that with the resources we have, we can multiply, multifold our capability to execute better.

So, yeah, we will continue to report our progress with our overall aim, of course, always to build a world-class technology to improve our customer experience while minimizing our support costs, having the lowest cost to serve. Thank you.

Thank you, Catherine. And thank you very much, Adrian, for your questions. We will take one final question from Norman Chung at CLSA. Norman, please unmute yourself and go ahead.

Yeah. Hi, thank you, Joe. Thanks for your productivity and congratulations, Goto team, for a very strong result. And I also appreciate the guidance upgrade and optimism.

So two questions from me. The first is, there were these public demonstrations during the first weeks of September. Just wanted to know more, what are the impact to the businesses from that? Some of it has been discussed already from the regulatory side of things.

The second question is, I noticed that GoPay payment and customers are scaling very quickly. Your transaction grew 54%, even faster than your MTU growth of 20 plus percent. Just wanted to know what's behind the acceleration of customer and transaction, how do you keep this growth kind of going forward? And how should we think about 2026 growth trajectory for the fintech segment?

Yeah, thanks.

Thank you, Norman. As we all know that in The first week of September, we had about three to four days of disturbances in the number of cities across Indonesia, including Jakarta. And we saw that during that period of time, the demand for our mobility services in affected area went down, and it affected our overall number for the month. In October, month to date, we have seen that our business had returned to both trajectory.

And as we discussed early on with all the new initiatives to address the need of our mass market users and our iPhone segment, we believe that we have seen the bottom of ODS growth in the quarter. and business growth will accelerate again in fourth quarter onward. In regard to copay payments growth in customers and transactions, I will let Sudhanshu to address your question.

Thanks, Pat. So on FinTech, our Our momentum remains strong. MTU is scaling fast with up about 29%. But at the same time, we are also seeing an increase in transaction frequency, which is leading to much higher transaction and GTV numbers.

In fact, this turned out to be the first month where we processed over 500 million transactions from our customers. And if you look at it, this is being driven both by growth in our affluent segment and our mass market users. Coming on to the affluent users first. This quarter, we have continued to strengthen our position as the number one payment provider for premium services.

For example, we are the largest wallet on Netflix and many other such high value use cases. The focus here is on convenience, faster checkout, and similar products. Now these users come through our broader ecosystem where engagement in one service, like say GoFood, naturally extends into others, which helps us continue keeping these users on our platform. The mass market, however, is a different story.

It is a new frontier for us and has been a major driver of growth in recent quarters. Our focus here is on access, affordability, and simplicity. We are growing here through free transfers, having the fastest, securest scanner in the app, and providing the most affordable builds and mobile drop-offs. All of this inside a very small app so that people don't delete it.

As a result, our average active user now completes around 20 transactions a month. We are also seeing strong regional expansion. Sumatra and Kalimantan are our fastest growing areas over the last quarter, with transfers in QRIS leading the charge. A big thanks obviously to digital adoption that's accelerating beyond the major cities in Indonesia.

Now to build daily habits and to keep people, to keep coming back to our app, we also offer highly engaging games like Gopay Pet. In fact, now more than outside of the pet, there are 400 other mini games that are available inside the Gopay app. And this strategy has worked really well for us. As we mentioned before, about 24% of GoPay app users actively use these features, directly increasing retention and keeping us top of mind.

Now, the growth of users and transactions that we are seeing on GoPay is also very directly translating into significant expansion of our lending base and our loan book as we can identify and underwrite high quality borrowers at exceptionally low acquisition cost. In addition, beyond lending and payments, we also offer a comprehensive suite of financial products, including insurance and investments, which means the ecosystem lets us efficiently cross-sell active users into high margin verticals while increasing their attention on the platform.

With all of this, if I look ahead, our focus is on bringing more users by expanding use cases and deepening relationships with existing users. Our strategy has been working well. And we expect strong growth across customers, transactions, and our lending portfolio in the coming years. Thank you.

Thank you, Sudhanshu.

Thank you, Norman. And with that, we will conclude our call. Thank you all for dialing in this evening. It was a pleasure to speak to you all.

We look forward to speaking with you again in the coming days and weeks to talk more about our third quarter results. Have a wonderful evening.