Shares of D-MARKET Electronic Services & Trading Unsponsored ADR (HEPS) have been struggling lately and have lost 5.5% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road. The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the o ...

D-MARKET Electronic Services & Trading Unsponsored ADR (HEPS) has been on a downward spiral lately with significant selling pressure. After declining 17.8% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier. Here is How to Spot Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technic ...

ISTANBUL, Sept. 26, 2024 (GLOBE NEWSWIRE) -- D-MARKET Electronic Services & Trading (NASDAQ: HEPS), ("Hepsiburada" or the "Company"), a leading Turkish e-commerce platform, today announced that the Board of Directors (recently appointed by the General Assembly of Shareholders of the Company on September 12, 2024), in accordance with the Turkish Commercial Code, has determined the composition of its Committees and assigned additional functions to its Risk Committee. Effective September 21, 2024, the Audit Co ...

ISTANBUL, Sept. 25, 2024 (GLOBE NEWSWIRE) -- D-MARKET Electronic Services & Trading (d/b/a "Hepsiburada") (NASDAQ: HEPS), a leading Turkish e-commerce platform (referred to herein as "Hepsiburada" or the "Company"), announces the 18-month results of the "Trade and Technology Empowerment for the Earthquake Region" program (the "Program") for the period from March 6, 2023 to September 6, 2024. Since the Program's launch in March 2023: • The total number of active merchants operating in the earthquake region h ...

ISTANBUL, Sept. 20, 2024 (GLOBE NEWSWIRE) -- D-MARKET Electronic Services & Trading (d/b/a "Hepsiburada") (NASDAQ: HEPS), a leading Turkish e-commerce platform (referred to herein as "Hepsiburada" or the "Company"), has published its 2023 Sustainability Report. Hepsiburada is the first ecommerce platform in Türkiye to sign the United Nations ("UN") Global Compact. Cem Tanır, Hepsiburada's Head of Corporate Affairs, Communications and Sustainability, underscored the Company's commitment to green transformati ...

Core Viewpoint - Hepsiburada reported its financial results for Q2 and H1 2024, showing growth in gross merchandise value (GMV) and EBITDA, despite a challenging macroeconomic environment in Turkey. The company continues to focus on customer loyalty and operational excellence to drive performance. Financial Highlights - Gross merchandise value (GMV) increased by 3.9% to TRY 33.8 billion in Q2 2024 compared to TRY 32.5 billion in Q2 2023 [5] - Revenue remained nearly flat at TRY 10,112.9 million compared to TRY 10,113.3 million in Q2 2023 [5] - EBITDA increased by 45.7% to TRY 386.6 million in Q2 2024 compared to TRY 265.3 million in Q2 2023 [5] - Loss for the period was TRY 384.5 million compared to income of TRY 1,511.9 million in Q2 2023 [5] - Free cash flow improved to negative TRY 644.5 million from negative TRY 1,041.8 million in Q2 2023 [6] Operational Highlights - Number of orders increased by 33.3% to 36.7 million in Q2 2024 compared to 27.5 million in Q2 2023 [5] - Active customers increased by 0.5% to 12.1 million compared to 12.0 million as of June 30, 2023 [5] - The number of SKUs increased by 35.6% to 264.0 million compared to 194.7 million as of June 30, 2023 [5] - Share of Marketplace GMV rose to 71.1% in Q2 2024 from 67.1% in Q2 2023 [5] Strategic Initiatives - The loyalty program, Hepsiburada Premium, reached 3 million members by mid-August 2024, enhancing customer retention [8][22] - HepsiJet delivered 73% of total parcels on the platform, up from 66% in Q2 2023, indicating improved logistics performance [9] - Hepsipay's lending services saw total lending volume reach TRY 11.2 billion over the last twelve months, up from TRY 8.1 billion in Q1 2024 [10] Market Outlook - For Q3 2024, the company expects GMV growth in the range of 70% to 75% year-on-year, unadjusted for inflation [11][16] - The company aims for EBITDA around 2.2% of GMV in Q3 2024, unadjusted for inflation [11] Economic Context - The annual inflation rate in Turkey was reported at 71.6% as of June 30, 2024, up from 38.2% a year earlier [18] - Consumer confidence index fell to 78.3 as of June 30, 2024, indicating a challenging economic environment [18]

Core Insights - Hepsiburada, a leading Turkish e-commerce platform, will report its unaudited financial results for Q2 2024 on September 11, 2024 [1] - The company will host a conference call and live webcast to discuss its financial results on the same day [2] Company Overview - Hepsiburada connects over 64 million members with over 248 million stock keeping units across more than 30 product categories [4] - The platform operates a hybrid model combining first-party direct sales and a third-party marketplace with approximately 102 thousand merchants [4] - Hepsiburada provides a broad ecosystem of capabilities including last-mile delivery, advertising services, on-demand grocery delivery, and payment solutions through Hepsipay [5] Social Impact - Since its founding in 2000, Hepsiburada has focused on empowering women in the Turkish economy through initiatives like the 'Technology Empowerment for Women Entrepreneurs' program, which has supported around 53 thousand female entrepreneurs [6]

Core Insights - D-MARKET Electronic Services & Trading, operating as Hepsiburada, has partnered with Warner Bros. Discovery to offer BluTV subscriptions to Hepsiburada Premium members, enhancing the value proposition for its subscribers [1][2] - Hepsiburada Premium has reached 2.6 million subscribers as of May 31, 2024, providing various benefits including free delivery, cashback, and discounted services [2] - BluTV, acquired by Warner Bros. Discovery in December 2023, offers a diverse range of Turkish and international content, including over 10,000 hours of on-demand premium content [1][7] Company Overview - Hepsiburada is a leading e-commerce platform in Turkey, connecting over 64 million members with more than 248 million stock keeping units across 30 product categories [3] - The company operates a hybrid model combining first-party direct sales and a third-party marketplace, with approximately 102,000 merchants [3] - Hepsiburada aims to lead the digitalization of commerce in Turkey, providing a comprehensive ecosystem for merchants and consumers, including last-mile delivery, advertising services, and payment solutions [4] Social Impact - Since its inception in 2000, Hepsiburada has focused on empowering women in the Turkish economy, supporting around 53,000 female entrepreneurs through its 'Technology Empowerment for Women Entrepreneurs' program [5]

D-Market Electronic Services & Trading (NASDAQ:HEPS) reported its first quarter results, highlighted by strong growth and expanding margins, We covered some of these themes issuing a rare "strong buy" rating for the stock last year noting the company's path to sustainable profitability deserved a closer look. I HEPS Q1 Earnings Recap Three months ended March 31, unaudited Notably, the company presents the figures as inflation-adjusted, eapturing the "real growth". This is important as Turkey continues to de ...

Financial Data and Key Metrics - Gross Merchandise Value (GMV) grew by 43% in Q1 2024, adjusted for inflation, driven by a 17% increase in average order value and a 22% rise in total orders [16][36] - EBITDA improved by 120 basis points year-on-year to 2.4% of GMV on an unadjusted basis, and by 70 basis points to 0.8% when adjusted for inflation [32] - Gross contribution margin improved by 1.2 percentage points to 10.5%, supported by higher delivery service and advertising revenues [8][38] - Free cash flow was TRY1 billion in Q1 2024, up from TRY102 million a year ago, driven by improved EBITDA and working capital management [18][30] Business Line Performance - Marketplace operations accounted for 68% of total business in Q1 2024, with a 38% growth in retail and 32% growth in marketplace operations revenue [8][17] - Delivery service revenues nearly doubled year-on-year, contributing 14% of total revenues, driven by off-platform business momentum and higher delivery charges [8] - Advertising services revenues doubled, while other revenue lines grew by 148%, supported by a fourfold increase in loyalty subscription revenues [8] - Hepsipay, the company's BNPL and consumer finance solution, facilitated over 1.1 million orders in the last 12 months, with total lending volume tripling to TRY8.1 billion ($290 million) [5] Market Performance - Active customer base grew to 12.1 million, with 171,000 new customers added in Q1 2024 [13] - Order frequency over the last 12 months increased by 30%, reaching 9.8 orders per customer [4][36] - HepsiJet, the company's delivery service, delivered 3.2 million parcels in Q1, with off-platform volume accounting for 33% of total deliveries [14] Strategic Direction and Industry Competition - The company is focused on expanding its loyalty program, Hepsiburada Premium, which has 2.6 million members, and leveraging its superior delivery services through HepsiJet [13][33] - Hepsipay aims to capture a significant share of Turkey's $34 billion consumer loan market by growing its BNPL and shopping loan offerings [5] - The company is building cross-border capabilities, including a partnership with Jumia, to expand its reach beyond Turkey [28][65] - Regulatory changes in 2025, such as license fees and restrictions on private labels, are expected to constrain larger competitors like Amazon and Alibaba in Turkey [29][52] Management Commentary on Operating Environment and Outlook - Management expects Q2 2024 GMV growth of around 75% year-on-year, with EBITDA margins improving to 1.8%-2% of GMV [15] - The company anticipates continued challenges in the macroeconomic environment, including cooling consumer demand, but remains confident in its ability to grow sustainably [15][52] - Management highlighted the importance of affordability and payment solutions in Turkey, where Hepsipay holds a competitive advantage [51] Other Key Information - The company does not expect to pay corporate taxes in 2024 due to R&D tax incentives, with tax payments likely starting in 2026 [46] - A potential dual listing in Turkey's Borsa Istanbul is under evaluation, but no concrete decision has been made [50] Q&A Session Summary Question: Impact of the eighth holiday on Q2 GMV growth - The impact of the eighth holiday is already incorporated in Q2 guidance, with offline sales typically increasing during holidays, potentially reducing online sales growth by 1-2% [39][40][41] Question: Market share and competition with Amazon in Turkey - The company does not report exact online market share but claims to be gaining significant share in key categories like electronics, home, and mom & baby products [21][22][63] Question: Categories experiencing slowdowns in Q1 2024 - Slower demand was observed in discretionary categories like computers and TVs, with consumers trading down and deferring purchases rather than reducing online shopping frequency [23][60] Question: Plans to expand services in developed markets like North America - The company has no immediate plans to expand into North America but is exploring cross-border opportunities through partnerships and integrations with other marketplaces [25][61] Question: Expected incremental GMV from the Jumia partnership - Significant GMV impact from the Jumia partnership is expected in 2025 as the integration progresses, with minimal impact anticipated in 2024 [49][65] Question: Free cash flow generation outlook for 2024 - The company expects to improve free cash flow generation in 2024 through higher EBITDA and continued negative working capital management [30][59]