D-Market Elektronik Hizmetler ve Ticaret (HEPS) Q2 2024 earnings summary

Executive summary

• Q2 2024 GMV reached TRY 33.8 billion, up 3.9% year-over-year, with order volume up 33.3% to 36.7 million and active customers at 12.1 million.

• Gross contribution margin hit a record 12.0% in Q2 2024, up 2.6pp year-over-year, and EBITDA as a percentage of GMV rose to 1.1%.

• Free cash flow for H1 2024 was TRY 472 million, the highest first half since IPO, turning positive from negative TRY 1.3 billion in H1 2023.

• Q2 2024 revenue was nearly flat at TRY 10.1 billion, while net loss was TRY 384.5 million, reversing from a profit in Q2 2023 due to lower financial income and higher expenses.

• Marketplace (3P) GMV share rose to 71.1% in Q2 2024, with Hepsiburada Premium members surpassing 3 million.

Financial highlights

• H1 2024 GMV rose 21.6% to TRY 73.1 billion; revenue up 20.5% to TRY 22.4 billion; EBITDA up 151.4% to TRY 700.3 million.

• Gross contribution margin improved to 12.0% in Q2 2024 from 9.3% in Q2 2023.

• Operating expenses in Q2 2024 were TRY 10,145.3 million, down 0.5% year-over-year; opex as % of GMV improved to 30.0%.

• Free cash flow in Q2 2024 was -TRY 645 million; cash flow from operating activities in H1 2024 was TRY 1,340 million.

• IAS 29-unadjusted GMV and EBITDA showed much higher growth rates (GMV +79.2%, EBITDA +110.5% in Q2 2024).

Outlook and guidance

• Q3 2024 IAS 29-unadjusted GMV growth expected at 70–75% year-over-year, with EBITDA as a percentage of GMV around 2.2%.

• Positive free cash flow expected for full year 2024, with continued EBITDA improvement and diligent working capital management.

• Guidance supported by strategic initiatives, seasonality (back-to-school), and anticipated electronics market recovery.

• Management remains cautiously optimistic, focusing on sustainable and profitable growth amid challenging macroeconomic conditions.