Hepsiburada (NASDAQ:HEPS), a leading Turkish e-commerce platform, has announced its unaudited financial results for the third quarter ended September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Total Revenue (TRY million) | 12,241.6 | 12,036.6 | 1.7% |
| Operating Income (TRY) | +32.4 million | -245.1 million | Decreased Loss |
| EBITDA (TRY million) | 507.8 | 131.4 | 286.5% |
| Free Cash Flow (TRY million) | 1,579.0 | 2,831.0 | -44.2% |
Hepsiburada's third-quarter revenue showed a modest increase of 1.7% year-over-year to TRY 12,241.6 million, driven by growth in its delivery service and advertising revenue. However, the company reported a loss for the period of TRY 307.4 million. Notably, the firm's EBITDA soared by 286.5%, achieving positive operating income for the first time since its IPO, indicating better operational efficiency.
Revenue Breakdown by Segment
| Segment | Q3 2024 Revenue (TRY million) | Previous Guidance Comparison |
|---|---|---|
| 1P (First Party) | Decrease | Aligned with guidance |
| 3P (Third Party) | Increased | Slightly exceeded guidance |
| Delivery Service Revenue | Increased 47% | Surpassed inflation rate |
| Advertising & Fintech | Growth of 37.6%; 6.7x fintech | Above expectations |
The company's marketplace (3P) model reflected growth, while the 1P segment contracted, resulting from a strategic focus on higher-margin revenue streams. Enhanced fintech operations and advertising revenues further complemented overall financial performance.
Operational Highlights
- Gross Merchandise Value (GMV) : Increased by 10.3% to TRY 42.3 billion.
- Active Customers : Grew by 1.9% to 12.3 million.
- HepsiJet Delivery : Marked 74% of platform parcel deliveries.
- Hepsipay Wallet : Reached 17.6 million users with 21.1 million stored credit cards.
Executive Commentary
Nilhan Onal Gökçetekin, CEO of Hepsiburada, noted: 'Our Q3 results demonstrate our commitment to sustainable growth and profitability. We achieved our first positive operating income since the IPO, driven by strategic priorities and robust customer engagement.'
Dividends & Share Repurchase
The earnings report did not announce any dividend distributions or share repurchase programs.
Forward Guidance
For the fourth quarter, Hepsiburada anticipates GMV growth of 50-55% and EBITDA as a percentage of GMV of 1.8-2.0%, both unadjusted for inflation. This guidance incorporates expected macroeconomic challenges.
In conclusion, Hepsiburada's Q3 performance reflects strategic adjustments amid Turkey's challenging economic landscape, showcasing growth in high-margin areas and operational improvements—an encouraging sign for stakeholders and investors alike.
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