D-MARKET Elektronik Hizmetler ve Ticaret AS · NASDAQ:HEPS
D-MARKET Elektronik Hizmetler ve Ticaret AS — D-Market Electronic Services & Trading (Hepsiburada) — Q1 2024 Earnings Presentation
28 slides from D-MARKET Elektronik Hizmetler ve Ticaret AS's earnings presentation, Jun 13, 2024
Slide 1: Q1 2024 Results Presentation
Q1 2024 Results Presentation June 13, 2024
Slide 2: Disclaimer
Disclaimer Restatement of Financial Information Pursuant to the International Accounting Standard 29, Financial Reporting in Hyperinflationary Economies (“IAS 29”), the financial statements of entities whose functional currency is that of a hyperinflationary economy must be adjusted for the effects
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation, the conference call webcast, press release and related communications include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the S
Slide 4: Business Update
Business Update
Slide 5: Q1 2024: A Robust Start to the Year
Q1 2024: A Robust Start to the Year Unadjusted for inflation IAS 29-Unadjusted IAS 29-Unadjusted IAS 29-Unadjusted Gross IAS 29-Unadjusted GMV Revenue Contribution Margin(1) EBITDA TRY 35.2Bn TRY 10.9Bn 12.0% TRY 835Mn 2.4% Q1’24 of GMV 137.8% YoY 140.7% YoY +1.5 pp YoY +1.2 pp YoY Adjusted for infl
Slide 6: Hepsiburada: Most Recommended E-Commerce Brand in Türkiye
Hepsiburada: Most Recommended E-Commerce Brand in Türkiye Customers Merchants 12.1M 2.6M 101.9K +1.2K Active HB Premium Active YoY Customers Members(1) Merchants +171K YoY Order & Frequency Selection 29.3M 9.8 248M 38% Total Order Orders Frequency SKUs YoY 22% YoY 30% YoY Figures are at March 31, 20
Slide 7: Strategic Priorities: Firm Performance on all Fronts in Q1 2024
Strategic Priorities: Firm Performance on all Fronts in Q1 2024 1 2 3 4 Win with loyalty: Clear differentiation with Clear differentiation with Offer HepsiJet and Hepsipay Hepsiburada Premium superior delivery services affordability & services off-platform lending solutions 2.6M HB Premium prog
Slide 8: Our Affordability and Lending Solutions: Unmatched Proposition
Our Affordability and Lending Solutions: Unmatched Proposition BNPL HepsiFinans NEW! • Up to 12 months maturity • In-house consumer finance loan facility Hepsiburada • Largest non-bank BNPL solution in the market • Over TRY 280M loans given(1) Funded Products • Highest CR among other banks(3) Shoppi
Slide 9: Hepsipay: Set to Become Türkiye's Leading Digital Wallet and One-Click Checkout Solution Provider
Hepsipay: Set to Become Türkiye’s Leading Digital Wallet and One-Click Checkout Solution Provider Digital Wallet One-click Check Out 15.7M 28 retailers already integrated Hepsipay Wallet Base(1) • “Pay with Hepsipay”(1) 1.4M+ HB prepaid cards issued(1) 18.3M cards stored at Hepsipay(1) Target Market
Slide 10: Q2 2024 Guidance: Continued Profitable Growth
Q2 2024 Guidance: Continued Profitable Growth Guidance Expected Q2 2024 H1 2024 IAS 29-Unadjusted GMV Growth(1) Around 75% Around 103% (YoY) IAS 29-Unadjusted EBITDA 1.8% - 2.0% 2.1% – 2.2% as % of GMV(1) (1): Figures are based on IAS 29-Unadjusted GMV and IAS 29-Unadjusted EBITDA figures. Q1 2024 R
Slide 11: Financial Update
Financial Update
Slide 12: Q1 2024: Solid Performance
Q1 2024: Solid Performance GMV Gross Contribution(1) EBITDA % of GMV US$ $0.8 B $1.1 B $73.5 M $117.8 M $0.4 M $9.0 M equivalent(2) TRY 2,374 M TRY 3,804 M TRY 12.2 M TRY 289.4 M 42.5% 120bps 70bps (TRY billions) (as % of GMV) (as % of GMV) 36.3 10.5% 0.8% 9.3% 25.5 0.0% Q1’23 Q1’24 Q1’23 Q1’24 Q1’2
Slide 13: Q1 2024: Strong Real Growth in GMV
Q1 2024: Strong Real Growth in GMV Q1’24: Solid KPIs GMV Breakdown(1) (TRY Billion) 1P GMV (TRY Billion) Non-Electronics GMV 29.3M 3P GMV Electronics GMV Total Orders 42.5% 22% YoY 36.3 31.6% +1.4pp 9.8 25.5 41.4% 42.8% Order Frequency 31.8% 30% YoY 68.4% 58.6% 57.2% 248M 68.2% SKUs 38% YoY Q1’23 Q1
Slide 14: Solid Revenue Growth Coupled with Margin Improvement
Solid Revenue Growth Coupled with Margin Improvement Revenue Breakdown and Bridge Gross Contribution Margin Revenue as a % of GMV (TRY Million) 45.0% 11,310 153 +1.2pp 83 421 780 353 1,602 10.5% 2,139 1,470 7,800 9.3% 185 822 1,117 11,310 7,816 5,676 Revenue Sales of Marketplace Delivery Ad Other(1)
Slide 15: EBITDA Uptrend Through Higher Gross Contribution
EBITDA Uptrend Through Higher Gross Contribution EBITDA as a % of GMV Bridge +0.7pp -0.1% -0.5% 0.8% 0.2% 1.2% -0.1% 0.05% EBITDA % of GMV Gross contribution Advertising exp. Shipping and Payroll and Other OPEX EBITDA % of GMV Q1’23 packaging exp. outsource Q1’24 staff exp. TRY 12.2 million TRY 289.
Slide 16: Strong Cash Generation on Robust Growth and Cash Discipline
Strong Cash Generation on Robust Growth and Cash Discipline Cash Flow From Operating Activities CAPEX Free Cash Flow(1) TRY million % of GMV TRY million 1,456 TRY 426 mn 1,030 -1.2% 102 -1.4% -259 Q1’23 Q1’24 Q1’23 Q1’24 Q1’23 Q1’24 (1): Free Cash Flow is a non-IFRS measure defined as net cash provi
Slide 17: Q1 2024: Key Takeaways
Q1 2024: Key Takeaways 1 Robust GMV growth exceeding guidance, real growth of 42.5% yoy 2 Solid 1.2pp improvement in Gross Contribution Margin 3 TRY 289 mn EBITDA with 0.7pp improvement as a % of GMV 4 Solid Free Cash Flow generation of TRY 1.0 bn 5 Strong execution on our well-defined priorities, d
Slide 18: Q&A
Q&A Tim ar %50 indi kagirma
Slide 19: Appendix
Appendix Consolidated Financial Statements Presentation of Financial and Other Information
Slide 20: Summary Financials
Summary Financials (unaudited) (unaudited) TRY million Q1’24 Q1’23 YoY Revenue 11,309.6 7,800.5 45.0% Gross Contribution 3,804.0 2,374.3 60.2% Gross Contribution margin(1) 10.5% 9.3% 1.2pp Operating Expenses(2) (Opex) (11,407.5) (8,087.9) 41.0% Opex as a % of GMV (31.4%) (31.8%) (0.3pp) Net Loss (13
Slide 21: Consolidated Statements of Comprehensive Loss
Consolidated Statements of Comprehensive Loss Consolidated Statements of Comprehensive Loss (Amounts expressed in thousands of Turkish lira (TRY) in terms of the purchasing power of the TRY at 31 March 2024) Three Months Ended unaudited unaudited 1 January - 1 January - 31 March 2024 31 March 2023 R
Slide 22: Consolidated Balance Sheets
Consolidated Balance Sheets Consolidated Balance Sheets (Amounts expressed in thousands of Turkish lira (TRY) in terms of the purchasing power of the TRY at 31 March 2024.) unaudited unaudited 31-Mar-24 31-Dec-23 Assets: Current assets: Cash and cash equivalents 3,562,870 6,328,500 Restricted cash 1
Slide 23: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows (Amounts expressed in thousands of Turkish lira (TRY) in terms of the purchasing power of the TRY at 31 March 2024.) (unaudited) (unaudited) 1 January – 31 March 2024 1 January – 31 March 2023 Loss before income taxes (130,7
Slide 24: Non-IFRS Metrics Reconciliation (I/IV)
Non-IFRS Metrics Reconciliation (I/IV) Amounts expressed in million of Turkish lira (TRY) in terms of the purchasing power of the TRY at March 31, 2024. EBITDA (TRY million) Three months ended March 31, 2024 2023 Net loss for the period (130.7) (324.9) Taxation on income 0.0 0.0 Financial income 819
Slide 25: Non-IFRS Metrics Reconciliation (II/IV)
Non-IFRS Metrics Reconciliation (II/IV) Amounts expressed in million of Turkish lira (TRY). IAS 29-Unadjusted EBITDA (TRY million) Three months ended March 31, Reversal of IAS 29 Reversal of IAS 29 IAS 29 Unadjusted IAS 29 Unadjusted 2024 Adjustment 2023 Adjustment 2024 2023 Net income / (loss) for
Slide 26: Non-IFRS Metrics Reconciliation (III/IV)
Non-IFRS Metrics Reconciliation (III/IV) REVENUE (TRY million) Three months ended March 31, 2024 2023 Revenue 11,309.6 7,800.5 Reversal of IAS 29 adjustment 397.0 3,267.0 IAS 29-Unadjusted Revenue 10,912.6 4,533.5 GROSS CONTRIBUTION (TRY million) Three months ended March 31, 2024 2023 Revenue 11,309
Slide 27: Non-IFRS Metrics Reconciliation (IV/IV)
Non-IFRS Metrics Reconciliation (IV/IV) Free Cash Flow (TRY million) Three months ended March 31, 2024 2023 Net cash provided by operating activities 1,455.7 101.5 Capital expenditures (429.1) (362.4) Proceeds from the sale of property and equipment 3.0 1.6 Free Cash Flow 1,029.6 (259.3) Net Working
Slide 28: Certain Definitions
Certain Definitions We provide a number of key operating performance indicators used by our management and often used by competitors in our industry. We define certain terms used in this presentation as follows: GMV as gross merchandise value which refers to the total value of orders/products sold
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