Indonesia’s earnings roundup featuring GoTo, Bukalapak, and Blibli

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Indonesia’s digital economy has been grabbing headlines for a while now. It is expected to grow into a US$130 billion market by 2025 and could further balloon up to a staggering US$360 billion by 2030, according to a joint report by Google (GOOGL, NDAQ), Temasek, and Bain and Company.

Its rapid growth is grounded on Indonesia’s strong social and economic fundamentals and booming offline-to-online trend, especially among affluent consumers and the digital-native youth in urban areas.

A hefty chunk of this lucrative opportunity is expected to come from ecommerce and on-demand services such as ride-hailing and online food delivery. However, the recent fortunes of three dominant Indonesian tech firms have been relatively mixed.

Investors rejoiced after GoTo Group’s (GOTO, IDX) latest quarterly report displayed the concrete steps it has taken on its path to profitability, but they were muted following reports from ecommerce majors Bukalapak (BUKA, IDX) and Blibli (BELI, IDX).

Today’s featured piece makes sense of the contrasting market reactions to the first quarter earnings reports from the three firms.

My colleague Simon dives into the nuts and bolts of these earnings releases and showcases how GoTo is reaping the benefits from its reduced emphasis on “low-quality” digital transactions.

The premium story also brings to the fore the impact of downsizing efforts at these firms, assesses their cash runways, and highlights the new business verticals GoTo, Bukalapak, and Blibli could venture into.

— Shravanth

THE BIG STORY

Image credit: Timmy Loen

Key takeaways from GoTo, Bukalapak, Blibli Q1 results
Indonesia’s tech companies are inching closer to profitability, although investors still have them on a tight leash.

3 Trends to keep an eye on

Hot stocks, earnings reports, restructuring, pressure from activist investors, and more.

2 Eye-popping facts

The one you didn’t see coming