This weekly newsletter chronicles top digital themes and trends playing out in SE Asia, especially Indonesia. We will decode policy and regulatory changes affecting digital economy sectors, crunch earnings data of top players, track developments related to gig economy workers and attempt to piece together ecosystem buildouts in some of the fastest-growing, venture-backed plays. You can access the previous editions of the Vantage Point weekly posts here.
Executive Summary
- Higher take rates, contribution margins key to Bukalapak’s future growth
- J&T faces several challenges after Hong Kong debut
- Ahead of earnings, all eyes on GoTo’s growth pivot
- Facebook and YouTube to enter the fray in Indonesia?
Higher take rates, contribution margins key to Bukalapak’s future growth
Bukalapak’s Q3 2023 earnings confirmed its forward momentum towards achieving the target of adjusted EBITDA breakeven by Q4 2023. At a negative 429 billion rupiah for 9M 2023, its adjusted EBITDA has already reached 82% of its FY2023 target of a negative 525 billion rupiah.
The company booked a Q3 2023 adjusted EBITDA of negative 95 billion rupiah, which was an 18% improvement over the average guidance of negative 100-125 billion rupiah and up from a negative 125 billion rupiah in Q2 2023, representing the eighth straight quarter of sequential growth in adjusted EBITDA.
Bukalapak’s 9M 2023 TPV increased 10% YoY to 164 billion rupiah, but its revenue saw a much stronger growth of 29% YoY, as take rates improved for both the O2O and marketplace businesses, with the latter being driven by specialty stores which generated higher take rates.
Q3 2023 TPV saw a 1% YoY drop, but revenue growth was stable at 29% YoY. The management emphasised that its focus was not on TPV but on generating TPV with higher monetisation potential from more profitable verticals of its specialty stores. TPV also dropped 1% QoQ in Q3 2023 due to a higher base from a Lebaran-fuelled Q2 2023.
