Heaptalk, Jakarta — Indonesia’s Bukalapak (ticker code: BUKA) reported unaudited financial results for Q2 2024 by growing its revenue by 6% QoQ, attaining US$76.5 million (around Rp1,244 billion).
Bukalapak announced that its marketplace division grow by 26% over the quarter, primarily supported by the continued success of gaming. Meanwhile, the Adjusted EBITDA for the period was -Rp41 billion, improved by Rp84 billion YoY.
The 17% growth in its online-to-offline (O2O) division in the first half of 2024 was driven by a continued improvement of its product mix and broader range of service offerings to partners. Furthermore, around 73% of the company’s Q2 TPV derives from Tier 2 and Tier 3 regions, with the continued growth in all-commerce penetration and digitizing trends among offline micro-retail stores. The O2O business represented 50% of group revenues in the first half of this year.
Gaming during the Eid celebrations boosted the overall marketplace performance in Q2, with a take rate as high as 3.5%. The company also noted several softening amongst the mass market consumers in the quarter, but the evidence continues to show that this remains a viable business model. For this reason, Bukalapak continues to invest in growth opportunities that will scale the business and boost earnings and margins in years to come.
“Despite a muted second quarter, we are pleased with our performance in the year’s first half. The 30% quarterly increase in contribution margin and strong take-rate, which has breached 3% on a blended basis for the first time,” Bukalapak’s President, Teddy Oetomo, said.
BUKA’s overall contribution margin, calculated as gross profit after S&M costs, improved from Rp124 billion in 1Q24 to Rp162bn in 2Q24. O2O’s contribution margin as a percentage of TPV was steady at 0.13%. However, the company noted a significant 20 bps improvement in Marketplace’s contribution margin to 0.77% in the second quarter of 2024.
Bukalapak also has a strong capital position, with about Rp19 trillion of cash, cash equivalents, and liquid investments, including government bonds and mutual funds, as of June 30th, 2024. This outstanding balance sheet has empowered the team to invest in innovation, expand markets, diversify product lines, and scale operations.
“Profitability continues to be prioritized over outright growth. Generating sustainable long-term profitable growth and creating real value while optimizing our operations and maintaining our financial discipline is the key focus of the management team over the coming years,” concluded Teddy.
