Heaptalk, Jakarta — E-commerce Bukalapak closed its business enhancement aligned with the target by recording revenue growth of up to 23%, attaining USD278 million (around Rp4,43 billion) in 2023, primarily boosted by the gaming division.
Furthermore, Bukalapak’s partner profits grew by up to 14% YoY, becoming US$37.8 million in Q4 2023, and increased by 11%, worth US$133 million, in FY23 compared to last year. The company’s online-to-offline (O2O) unit is driven by a product mix and numerous service offerings for its partners.
Around 70% of Total Processing Value (TPV) is contributed by Indonesia’s Tier 1 region, whereby Bukalapak perceived outstanding growth in all-commerce penetration and digitalization trends among an online retail store. As a result, this e-commerce’s O2O business represented about 54% of the group profit in Q4 2023.
“Our performance last year brought the company’s adjusted EBITDA close to the target positive point in the fourth quarter of 2023. We are increasingly confident that we will achieve our profitability targets every quarter, having achieved an increase in Adjusted EBITDA for eight consecutive quarters. We have a robust platform for growth with existing opportunities in our Partner, gaming, and e-retail businesses. We are focused on capturing the company’s strong growth opportunities in 2024.” President of Bukalapak, Teddy Oetomo, said.
The margin contribution of Bukalapak, calculated as gross profit after sales and marketing (S&M) costs, elevated from US$1.9 million in 2022 to US$33.6 million in FY23. Bukalapak’s O2O contribution margin as a percentage of TPV grew by 29bps from -0.25% in Q4 2022 to deliver the first positive result in the final quarter of 2023.
Bukalapak’s total annual General and Administrative Expenses decreased by 47% to US$84.8 million. The company claims that investment in technology is critical to driving its cost efficiency. In addition to continued efficiency improvements and solid growth figures, Bukalapak has firm capital worth US$1.2 billion of cash, cash equivalents, and liquid investments, including government bonds and mutual funds, as of December 31st, 2023.
“The solid macro economy has provided positive momentum for this year. We expect the company’s revenue to increase by around 15%-20%, to US$322 million, and Adjusted EBITDA to be higher than US$12.6 million in 2024,” affirmed Teddy.
