D-Market Elektronik Hizmetler ve Ticaret (HEPS) Q3 2024 earnings summary

Executive summary

• Achieved first positive quarterly operating income since IPO, with TRY 32.4 million in Q3 2024, reflecting strategic execution and team dedication.

• Delivered 10.3% GMV growth in Q3 and 17.4% GMV growth in the first nine months year-over-year, adjusted for inflation.

• Active customers rose to 12.3 million, with loyalty program members reaching up to 3.7 million.

• Navigated macroeconomic pressures and curbed purchasing power, leveraging value-driven strategies.

• Kaspi.kz signed an agreement to acquire a 65.4% controlling stake, with closing expected in Q1 2025.

Financial highlights

• Q3 2024 revenue was TRY 12,241.6 million, up 1.7% year-over-year; 9M 2024 revenue reached TRY 36,610.3 million, up 13.5%.

• Gross contribution margin improved to 11.5% in Q3 2024, up 2.1 percentage points year-over-year.

• EBITDA for Q3 2024 was TRY 507.8 million (1.2% of GMV), up 286.5% year-over-year.

• Free cash flow for Q3 2024 was TRY 2,093 million; 9M 2024 free cash flow was TRY 1,390 million.

• Q3 2024 net loss was TRY 307.4 million, compared to TRY 285.5 million loss in Q3 2023.

Outlook and guidance

• Full-year 2024 GMV growth expected at around 75% (IAS 29-unadjusted), or 13% growth adjusted for inflation.

• Q4 2024 GMV growth guidance is 50%-55%; Q4 EBITDA as % of GMV expected at 1.8%-2%.

• Full-year EBITDA as % of GMV expected at 2.1%-2.2%, signaling continued margin expansion.

• Management anticipates continued top-line growth and margin expansion despite macroeconomic headwinds.