Q1 2023 Tech Earnings: The Pursuit for Profit in Indonesia
As the Q1 2023 earnings season unfolds, one grand theme dominates the tech sector: a laser focus on profitability and a steady march towards achieving the elusive path to sustained financial success.
After years of ambitious growth strategies and prioritizing market share, industry leaders have shifted gears to prioritize profitability, acknowledging the importance of sustainable business models. This quarter we saw a lot less incentives and a thicker margin overall.
GoTo Q1 2023 Earnings
PT GoTo Gojek Tokopedia Tbk (IDX: GOTO)
In Q1 2023, GoTo saw an increase in their net revenue driven by cutbacks in driver incentives and customer discounts. The company’s efforts to optimize monetization and reduce costs across the organization, also allowed for improvements in GoTo’s adjusted EBITDA, and net loss performances when compared to its previous year Q1 2022.
Blibli & Tiket Q1 2023 Earnings
PT Global Digital Niaga Tbk (IDX:BELI)
In Q1 2023, Blibli & Tiket.com net revenue, quarterly gross profit, margins, along with the company’s EBITDA undergone significant improvements compared to its previous year Q1 2022. The group’s gross margin improved from 9% Q1 2022 to 15% Q1 2023.
Bukalapak Q1 2023 Earnings
PT Bukalapak Tbk (IDX:BUKA)
In Q1 2023, Bukalapak’s overall TPV increased 19% YoY from IDR 34.12tn to IDR 40.45tn. Bukalapak’s take rate increased to 2.49% from 2.31% same quarter last year. In Q1 2023, Bukalapak recorded a quarterly net loss of IDR 0.97 tn, while booking a net profit of IDR 14.55 tn Q1 2022, due to a gain on their investment in Allo Bank booked last year. By the end of March 2023, the number of registered Mitra in Bukalapak is 16.8 mn vs. 16mn by the end of December 2022.
Apple Q2 FYE Sept 2023 Earnings
Apple Inc (NASDAQ: AAPL)
In Q1 2023, Apple reported its second consecutive decline in overall sales, but the company’s Q2 FYE September 2023 earnings surpassed Wall Street’s expectations, primarily driven by stronger-than-anticipated iPhone sales. This positive news resulted in Apple’s shares rising nearly 2% in after-hours trading.
Additionally, Apple’s board approved USD 90bn in share repurchases and dividends, with USD 23bn already paid in buybacks and dividends in the March quarter. Furthermore, the company announced a 4% increase in its dividend to 24 cents per share.
Meta Q1 2023 Earnings
Meta Platforms Inc. (NASDAQ: META)
In Q1 2023, Meta reported slower revenue growth than increased costs and expenses, resulting in a 15% decrease in income from operations. Net income and diluted EPS also declined by 24% and 19% respectively. Ad services remained the primary revenue driver, while the Consumer Hardware segment showed significant growth. However, the Rality Labs segment performed poorly. User engagement saw positive trends, with both DAUs and MAUs increasing. Despite these results, Meta’s stock price saw a slight decline following the earnings release.
Alphabet Q1 2023 Earnings
Alphabet Inc. Class A (NASDAQ: GOOGL)
In Q1 2023, Alphabet reported revenue of USD 69.8bn, up 3% YoY. Advertising is the biggest contributor to the revenue, with USD 54.5bn, decreasing 0.1% YoY from USD 54.6. Google Others and Cloud contributed equally as second largest, increasing 8.8% YoY from USD 6.8bn, and 27% YoY from USD 5.8bn respectively. Other Bets and Hedging Gains contributed least as performance decreased by 34.5% YoY from USD 440, and 69% YoY from USD 278mn.
Despite Alphabet’s higher revenue, the company sees lower operating income, 13% lower YoY from USD 20 bn. The company also sees a lower net income, with USD 15bn, 8.5% YoY from USD 16.4bn
Amazon Q1 2023 Earnings
Amazon.com Inc. (NASDAQ: AMZN)
In Q1 2023, Amazon showed significant YoY increase in net sales, operating income, and net income when compared to Q1 2022. Operating income performance was segmented by geographic locations, with North America projecting the most growth YoY. The International segment continues to report at a loss, albeit slightly less than its Q1 2022 performance. The AWS segment has the highest percentage of contribution, however showed a decline in operating income compared to its previous year.
The significant increase in net income allowed for a stronger EPS at USD 0.31, a significant recovery from the EPS at USD 0.38 in Q1 2022. Despite these results, Amazon’s stock price fell almost 3% below its closing price during the earnings call.
Netflix Q1 2023 Earnings
Netflix Inc. (NASDAQ: NFLX)
In Q1 2023, Netflix reported revenue of USD 8.16bn, up 9% YoY from USD 7.97 bn. Despite the company’s higher revenue YoY, the company sees lower operating income in Q1 2023. This declining trend is noticed too in its net income, performing -19% lower compared to Q1 2022.
The region of U.S. and Canada (North America) contributed the most for Netflix, where Q1 2023’s value stands 8% higher YoY than USD 3.35 bn. The Europe, Middle East, and Africa (EMEA) region contributed second, despite decreasing -2% YoY from USD 2.56bn. The Latin America (LATAM) region contributed third, with USD 1bn, 7% higher YoY from USD 998mn. Lastly, Asia-Pacific (APAC) region contributed the lowest, 2% higher than USD 916mn.