Indonesian e-commerce firm Bukalapak has reported higher revenue in 2023, with the marketplace division delivering excellent growth of 47 percent over the year, primarily supported by the continued success in gaming.

The firm says in a statement on last Saturday that its revenue for the year grew 23 percent year on year to Rp 4,438 billion ($280.64 million), in line with its guidance.

The firm posted negative earnings before interest, taxes, depreciation, and amortization of Rp 475 billion in 2023, also in line with its guidance.

According to the firm, solid macro economy and strong consumer confidence have given them positive momentum as they start 2024.

The firm expects revenue to improve by between 15 percent to 20 percent to at least Rp 5.1 trillion and adjusted EBITDA to be better than Rp 200 billion in FY24.

“Our record performance in 2023 enabled us to come very close to reaching our quarterly adjusted EBITDA breakeven target in the final three months of 2023,

“We’re getting ever more confident in delivering our main goal of turning profitable on a quarterly basis imminently, having posted eight sequential quarters of adjusted EBITDA
improvement,” said Teddy Oetomo, Bukalapak’s President.

According to him, the firm has a strong platform for growth with the opportunity that exists within its Mitra, gaming and e-retailing businesses.

He said the firm is focused on capturing these growth opportunities, improving its earnings sustainability and targeting strong returns in 2024.

“Our results are a testament to the way we stayed focused in 2023. Core earnings – which are calculated as reported net income excluding gains/losses on investment, foreign exchange, goodwill and non-recurring items – were Rp 42 billion, which comfortably beat the Rp 2.3 trillion loss of last year,

“Bukalapak’s capital base, capital ratios and balance sheet remains incredibly strong with Rp 19.3 trillion in cash, cash equivalents and liquid investments,” he added.

It is noted that the firm’s Mitra revenue increased 11 percent year on year to Rp 2.2 trillion in 2023.

The growth in its online to 0ffline (O2O) division was driven by an improvement in its product mix and a broader range of service offerings to Mitras.

70 percent of the company’s total processing value TPV is from outside the Tier 1 regions of Indonesia, where it continues to see strong growth in all-commerce penetration and digitizing trends among offline micro retail stores.

Bukalapak’s overall contribution margin, calculated as gross profit after sales and marketing (S&M) costs, also improved from Rp 31 billion in FY22 to Rp 532 billion in 2023.

The firm said it is continually investing and innovating in its consumer value proposition, with enhanced selection, excellent in-app user experience and quality delivery options.

It noted it is critical that the firm continues to maintain good cost discipline.

It noted its total general and administrative (G&A) spend for the full year 2023 improved 47 percent to Rp 1.35 trillion.

The firm also highlighted that investing in technology was a key component in driving that cost efficiency.

It noted digitization has allowed the firm to continue to improve our user experience and reduce execution times.

In addition to its continued efficiency improvements combined with solid growth figures, Bukalapak said it also has a strong capital position with Ro 19.3 trillion of cash, cash equivalents and liquid investments which include government bonds and mutual funds as of December 31, 2023.

Bukalapak was founded in 2010 as an online marketplace to facilitate online commerce for small and medium enterprises.

The firm serves over 23 million Indonesian micro, small and medium enterprises (MSMEs) through its various solutions.

As the first publicly-listed Indonesian technology company, the firm is now focused squarely on using technology to enable today’s digital lifestyles for both Indonesian MSMEs as well as Indonesians in general, across numerous verticals from marketplace, finance and fintech, offline to online, and merchant solutions.

Indonesia’s Bukalapak confident in turning profitable by the fourth quarter of 2023