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

Executive summary

• Achieved first-ever positive quarterly operating income (TRY 32.4M) since IPO in Q3 2024, reflecting strategic execution and disciplined cost management.

• Delivered 10.3% GMV growth in Q3 and 17.4% GMV growth in the first nine months year-over-year, adjusted for inflation; order volume up 18.9% to 32M.

• Active customers reached 12.3 million, with loyalty program members at 3.7 million by November; Hepsiburada Premium members more than doubled to 3.3M.

• Kaspi.kz signed an agreement to acquire a 65.4% controlling stake for $1,127 million, with closing expected in Q1 2025, pending regulatory approvals.

• HepsiJet delivered 74% of parcels, with off-platform volume nearly doubling year-over-year.

Financial highlights

• Q3 2024 revenue was TRY 12,241.6 million, up 1.7% year-over-year; nine-month revenue 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.

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

• Free cash flow for Q3 2024 was TRY 1,579.0 million; nine-month free cash flow was TRY 1,390 million.

Outlook and guidance

• Q4 2024 GMV growth guidance: 50% to 55% (IAS 29-unadjusted); EBITDA as % of GMV: 1.8% to 2.0%.

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

• Full-year EBITDA as % of GMV expected at 2.1% to 2.2% (unadjusted for inflation), up 0.6pp year-over-year excluding one-off items.

• Management anticipates continued margin expansion and sustainable, profitable growth despite macroeconomic headwinds.