Indonesia-listed e-commerce giant Bukalapak recorded an adjusted EBITDA loss of 168 billion rupiah in Q3 2024, a 76% increase from 95 billion in Q3 2023, according to its filings with the Indonesia Stock Exchange.
In the first nine months of 2024, the company’s adjusted EBITDA grew by 55% to a negative 193 billion rupiah from 429 billion rupiah in the same period in 2023.
“The numbers do not align with our goal to achieve profitability in 2024,” the company stated.
In a statement, Bukalapak’s CEO Willix Halim said, that this quarter’s results have not been able to reverse the market and competitive dynamics that have shifted significantly over the past three years.
“This does not align with the company’s long-term strategy for sustainable growth. Therefore, we are making changes to our operational approach and in the business segments we focus on going forward,” said Halim.
The company has decided to undertake a business restructuring to focus on the following core businesses: Mitra Bukalapak, gaming, investment, and certain retail services.
“Bukalapak has made every effort; however, the losses and industry challenges faced by various business segments and/or subsidiaries over the past three years have prompted the management to refocus effort on selected core businesses,” he said.
The restructuring plan, which was approved by the Board of Directors and Board of Commissioners, will result in layoffs across the business. The plan will be implemented over the next two quarters or in the second quarter of 2025.
“Going forward, the company will focus on running and expanding its core business segments with a leaner, more efficient organisation to deliver optimal value to stakeholders and shareholders,” Halim noted.
The company reported a net loss of 593.2 million rupiah during the nine months of 2024, but, in Q3, it posted a net profit of 155 billion rupiah for the first time this year, filings show.
The company posted a net loss for consecutive periods from Q3 2023 to Q2 2024. The quarterly overall revenue also shows consecutive unstable growth trends from Q1-Q3 2024 at 1.1 trillion rupiah, 1.2 trillion rupiah and 987 billion rupiah respectively.
However, in 9M 2024, the revenue showed a slight increase of 2% to 3.4 trillion rupiah from 3.3 trillion rupiah in the same period last year.
The revenue growth was driven by the company’s marketplace and online-to-offline business segments. Bukalapak’s marketplace segment, which is primarily supported by gaming, generated revenue of 563 billion rupiah, a decrease of 11% YoY and 20% QoQ. Meanwhile, the O2O segment, from Mitra Bukalapak, also saw a decrease of 18% YoY and 19% QoQ, at 459 billion rupiah.
Bukalapak has been grappling with persistent losses since its initial public offering (IPO) in 2021. The company recorded a net loss of 1.67 trillion rupiah in 2021, 1.98 trillion rupiah in 2022, and 1.36 trillion rupiah in 2023.
Bukalapak maintained a solid cash position and balance sheet. As of Sept 2024, the company had 19 trillion rupiah, the majority in cash and cash equivalents, government bonds, and mutual funds.
