D-Market Elektronik Hizmetler ve Ticaret (HEPS) Q1 2024 earnings summary

Executive summary

• Achieved strong Q1 2024 results with GMV up 42.5% to TRY 36.3 billion, revenue up 45% to TRY 11.3 billion, and order volume up 21.7% to 29.3 million, exceeding guidance and maintaining market leadership.

• EBITDA improved to TRY 289.4 million (0.8% of GMV), the highest since IPO, and net loss narrowed to TRY 130.7 million.

• Free cash flow turned positive at TRY 1,029.6 million, with cash from operations at TRY 1,455.7 million.

• Hepsiburada Premium members nearly tripled to 2.5 million, and HepsiJet delivered 68% of parcels.

• Strategic focus on loyalty, delivery, affordability, and externalizing services drove operational and financial improvements.

Financial highlights

• Revenue increased 45% year-over-year to TRY 11,309.6 million, with delivery service revenue up 95%.

• Gross contribution margin improved by 1.2pp to 10.5% of GMV, the highest since IPO.

• EBITDA margin rose to 0.8% of GMV, a 0.7pp improvement year-over-year.

• Free cash flow reached TRY 1,029.6 million, with CAPEX at TRY 426 million.

• Total cash and equivalents stood at TRY 3,562.9 million, with financial investments at TRY 4,402.9 million as of March 31, 2024.

Outlook and guidance

• Q2 2024 GMV expected to grow ~75% year-over-year; EBITDA margin forecasted at 1.8%-2% of GMV (unadjusted).

• Management remains focused on sustainable, profitable growth and prudent capital allocation.