PT Bukalapak.com Tbk, an Indonesian e-commerce company, has posted a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first time at Rp 15 billion ($921,687), underpinned by higher revenue.

Bukalapak said in a statement on Monday that the firm’s reported revenue grew by 16 percent year-over-year in the first quarter with the online to offline (O2O) division delivering excellent growth of 24 percent over the year, primarily supported by the continued success in Mitra.

The growth in its O2O division was driven by an improvement in our product mix and a broader range of service offerings to Mitras.

It is noted that 64 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.

It is also noted that the O2O business represented 55 percent of group revenues in the first quarter.

Meanwhile, Bukalapak’s overall contribution margin, calculated as gross profit after sales and marketing costs, improved to Rp 124 billion in the first quarter from Rp 104 billion a year ago.

O2O’s contribution margin as a percentage of TPV grew by 23 basis points from -0.10 percent in the first quarter of 2023 to deliver a second consecutive positive figure in the first
quarter of 2024 at 0.13 percent.

“First quarter is a landmark moment in Buka’s history. We are now profitable on a quarterly adjusted EBITDA basis for the first three months of 2024,

According to Bukalapak’s President Teddy Oetomo, the result has been achieved with strong top-line revenue growth, a thriving take rate – especially in the O2O segment – and excellent cost control.

He said the firm is very focused on executing towards its stated goal of sustainable and profitable growth in the coming quarters and throughout 2025 as it continues to capture the growth opportunities that exist within its mitra, gaming and e-retailing businesses.

“Our results are a testament to the way we have stayed focused. Core earnings – which are calculated as reported net income excluding gains/losses on investment, foreign exchange, goodwill and non- recurring items – were Rp 185 billion, which comfortably beat the Rp 117 billion loss of last year’s first quarter,” he added.

Going forward, Bukalapak continues to expect revenue to improve by between 15percent to 20 percent year-over-year to at least Rp 5.1 trillion and adjusted EBITDA to be better than Rp 200 billion in FY24.

According to the firm, this remains a viable business model and it continues to invest in growth opportunities that will scale the business and boost both earnings and margins in years to come.

It also said a solid macro economy and firm consumer confidence have given the firm positive momentum as it starts 2024 and underlying business trends remain robust.

The firm also 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 also said it is critical that the firm continues to maintain good cost discipline.

Technology investment was also a key component in driving the cost efficiency as digitization has allowed the firm to continue to improve its 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 Rp 19.1 trillion of cash, cash equivalents and liquid investments which include government bonds and mutual funds as of 31 March 2024.

It said the strong balance sheet has empowered the firm to invest in innovation, expand markets, diversify product lines and scale operations at the times it makes sense to do so.

“Profitability has been prioritized over outright growth. Generating sustainable profitable growth and creating real value whilst optimizing our operations and maintaining our financial discipline is the key focus of the management team over the coming years,” Oetomo added.

Indonesian Bukalapak’s revenue up 23 percent year on year in 2023