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01/11 03:09
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with GMV and revenue growth, improved margins, and increased order frequency. Despite economic uncertainties and competitive pressures, Hepsiburada shows resilience with strategic partnerships and regulatory advantages. Positive sentiment is reinforced by optimistic guidance and future profitability trajectory. However, lack of specific market share data and unclear responses on US GAAP reporting are minor concerns. Overall, the positive aspects outweigh the negatives, suggesting a likely positive stock price reaction.
GMV (Gross Merchandise Volume) TRY 1.5 billion, up 138% year-over-year; growth driven by a favorable base effect from last year's earthquake and a solid 43% adjusted for inflation.
Gross Contribution Margin 10.5%, improved by 1.2 percentage points year-over-year; improvement attributed to higher delivery service revenues and advertising revenues.
EBITDA TRY 289 million, corresponding to 0.8% of GMV, up 75 basis points year-over-year; increase due to higher gross contribution margin, partially offset by increased shipping and packaging expenses.
Cash Generated from Operations TRY 1.5 billion, up from TRY 102 million year-over-year; driven by a TRY 778 million improvement in change in working capital and increases in EBITDA and other non-cash items.
Free Cash Flow Approximately TRY 1 billion in Q1 2024; calculated after accounting for TRY 426 million in CapEx.
Revenue Growth 45% year-over-year; driven by 38% growth in retail and 32% growth in marketplace operations, with delivery service revenues nearly doubling.
Hepsipay: Hepsipay is scaling its offerings with additions to its already comprehensive suite of payments and lending services. It aims to capture a substantial share in Turkey's $34 billion consumer loan market.
HepsiJet: HepsiJet has more than doubled its volume year-on-year in Q1, delivering 3.2 million parcels, with off-platform volume corresponding to nearly 33% of its total Q1.
Active Customer Base: The active customer base reached 12.1 million, with an additional 171,000 customers added.
Loyalty Program: The loyalty program, Hepsiburada Premium, scaled to 2.6 million members by the end of May.
Order Growth: Recorded 29.3 million orders with a 22% growth during the quarter.
Gross Contribution Margin: Improved by 150 basis points to 12%, marking the highest since the IPO.
EBITDA: EBITDA rose 120 basis points year-on-year to 2.4% of GMV on an unadjusted basis.
Market Positioning: Hepsipay aims to grow its business line profitably and take a sizable share in Turkey's consumer loan market.
Delivery Services: Merchant preference for HepsiJet services has risen significantly, with 68% of total parcels delivered by HepsiJet.
Macroeconomic Challenges: The company acknowledges the continuation of challenging macroeconomic conditions, which may lead to a cooling of consumer demand.
Competitive Pressures: The company faces competitive pressures in the e-commerce market, necessitating a focus on differentiation through superior delivery services and financial solutions.
Regulatory Issues: There are potential regulatory challenges that could impact the company's operations, particularly in the financial services sector.
Supply Chain Challenges: The company may encounter supply chain challenges that could affect delivery services and overall operational efficiency.
Economic Factors: High interest rates in the current economic climate pose risks to consumer spending and borrowing, impacting overall business performance.
Loyalty Program: The Hepsiburada Premium loyalty program is growing, with a customer base of 2.6 million members, contributing to overall growth.
Delivery Services: HepsiJet delivered 68% of total parcels, with an 82% next day delivery ratio, enhancing customer satisfaction.
Hepsipay: Hepsipay is expanding its offerings, including consumer finance loans and BNPL solutions, aiming to capture a share of Turkey's $34 billion consumer loan market.
B2B Services: Hepsiburada is focusing on expanding its B2B services as a turnkey e-commerce solution for merchants.
Q2 2024 GMV Growth: Expected growth around 75% year-on-year, with first half GMV growth expected to double year-on-year.
EBITDA Guidance: Forecasted EBITDA within the range of 1.8% to 2% of GMV for Q2 2024.
CapEx: CapEx for Q1 2024 was TRY426 million, contributing to a free cash flow of around TRY1 billion.
Share Buyback Program: None
The earnings call reveals mixed signals: strong GMV and EBITDA growth guidance, but weak Q3 financials and macroeconomic pressures. The ownership transition poses regulatory risks, and there's no announced shareholder return plan. The Q&A highlights concerns about demand and unclear responses on fintech plans. While the company shows resilience with loyalty programs and fintech growth, the lack of clear positive catalysts and ongoing economic challenges suggest a neutral stock price movement over the next two weeks.
The earnings call summary presents a mixed picture. Basic Financial Performance shows modest GMV growth, yet strong margins. Product Development and Business Update are positive due to strategic initiatives and loyalty programs. Market Strategy faces challenges from competitive pressures and economic factors. Expenses and Financial Health are concerning due to high costs and negative cash flow. Shareholder Return Plan is neutral with no buyback program. The Q&A reveals cautious optimism but highlights economic and competitive pressures. Overall, the sentiment is neutral, with no major catalysts for strong price movement.
The earnings call highlights strong financial performance with GMV and revenue growth, improved margins, and increased order frequency. Despite economic uncertainties and competitive pressures, Hepsiburada shows resilience with strategic partnerships and regulatory advantages. Positive sentiment is reinforced by optimistic guidance and future profitability trajectory. However, lack of specific market share data and unclear responses on US GAAP reporting are minor concerns. Overall, the positive aspects outweigh the negatives, suggesting a likely positive stock price reaction.
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