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D-MARKET Electronic Services & Trading(HEPS) - 2023 Q2 - Quarterly Report
2023-08-24 11:00
Exhibit 99.1 Hepsiburada Announces Second Quarter 2023 Financial Results ISTANBUL, August 24, 2023 - 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"), today announces its unaudited financial results for the second quarter ended June 30, 2023. Restatement of financial information: Pursuant to the International Accounting Standard 29, Financial Reporting in Hyperinflationary Economies ("IAS ...
D-MARKET Electronic Services & Trading(HEPS) - 2023 Q1 - Earnings Call Transcript
2023-05-25 15:32
Financial Data and Key Metrics Changes - The company achieved a positive EBITDA of TRY 176 million, marking the highest level since its IPO in July 2021, with a year-on-year EBITDA as a percentage of GMV rising by 4.8 percentage points [3][21][28] - Revenue growth was reported at 16% year-on-year, with adjusted for inflation GMV growth at 78%, reaching TRY 14.8 billion [51][55] - The gross contribution margin improved to 9.3%, reflecting a 5.6 percentage point increase compared to the same quarter last year [25][56] Business Line Data and Key Metrics Changes - The share of marketplace GMV reached 68%, up from 65% in Q1 2022, indicating a strategic advantage in third-party operations [24] - Non-electronics categories in GMV split rose by 1.6 percentage points to 43% year-on-year, showcasing diversification in product offerings [24] - HepsiPay Wallet users increased to 11.8 million, a 66% rise year-on-year, with 87% of GMV generated by HepsiPay customers [41] Market Data and Key Metrics Changes - The number of merchants on the platform exceeded 100,000, reflecting a 21% year-on-year increase, with total orders around 74 million, marking a 61% growth [9][37] - The company reported a significant improvement in next-day delivery capabilities, rising to 84% year-on-year [15] - The active customer base remained nearly TRY 11.9 million, with signs of recovery post-earthquake [37] Company Strategy and Development Direction - The company aims to focus on sustainable differentiators, including affordability solutions and superior delivery services, to enhance customer retention and competitive positioning [5][10] - A strategic priority is to offer logistics and fintech solutions to third parties, unlocking new revenue streams and enhancing operational efficiency [46] - The company is committed to profitability through core operations and cost optimization, with a focus on customer loyalty via the Hepsiburada Premium program [10][38] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second quarter, expecting continued strong growth driven by improved merchant onboarding and a focus on non-electronics [60][62] - The company acknowledged the impact of the February earthquake but noted a return to pre-earthquake levels in customer engagement by March [37][49] - Management emphasized the importance of optimizing discounts and operational expenditures to maintain profitability [70][72] Other Important Information - The company launched the HepsiPay debit card and introduced new customer loan features to enhance financial flexibility for users [48] - HepsiJet's performance in logistics showed a solid increase in third-party delivery services, contributing to overall growth [17][44] - The company reported a negative free cash flow of TRY 154 million in Q1 2023, an improvement from negative TRY 2.3 billion in Q1 2022, due to better working capital management [27] Q&A Session Summary Question: What are the main drivers behind the robust growth expected in the second quarter? - Management indicated that the growth rate in Q1 was significantly hampered by the earthquake, and excluding this factor, stronger growth was observed, leading to confidence in future performance [60] Question: Do you expect a positive trend to continue in the rest of the year? - Management expressed optimism about maintaining a positive trend, particularly with the onboarding of new merchants and a focus on non-electronics, which are expected to enhance margins [62] Question: How is the company managing discounts and operational expenditures? - Management confirmed ongoing optimization of customer discounts and operational expenditures to ensure profitability moving forward [70][72]
D-MARKET Electronic Services & Trading(HEPS) - 2022 Q4 - Annual Report
2023-05-01 20:15
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 1 ...
D-MARKET Electronic Services & Trading(HEPS) - 2022 Q4 - Earnings Call Transcript
2023-03-22 19:13
D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) Q4 2022 Earnings Conference Call March 22, 2023 9:00 AM ET Company Participants Helin Celikbilek - Investor Relations Director Nilhan Onal Gökçetekin - CEO Korhan Öz - CFO Conference Call Participants Hanzade Kilickiran - JPMorgan Operator Ladies and gentlemen, thank you for standing by. I'm Popee, your Chorus Call operator. Welcome, and thank you for joining the Hepsiburada Conference Call and Live Webcast to present and discuss the Fourth Quarter ...
D-MARKET Electronic Services & Trading(HEPS) - 2023 Q1 - Quarterly Report
2023-03-22 10:09
Exhibit 99.1 Hepsiburada Announces Fourth Quarter and Full Year 2022 Financial Results ISTANBUL, March 22, 2023 - 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"), today announces its unaudited financial results for the fourth quarter and full year ended December 31, 2022. Restatement of financial information: Pursuant to the International Accounting Standard 29, Financial Reporting in Hy ...
D-MARKET Electronic Services & Trading(HEPS) - 2022 Q3 - Earnings Call Transcript
2022-12-06 16:24
D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) Q3 2022 Results Conference Call December 6, 2022 8:00 AM ET Company Participants Helin Celikbilek - Investor Relations Director Murat Emirdag - Chief Executive Officer Korhan Oz - Chief Financial Officer Conference Call Participants Unal Cem - Goldman Sachs Operator Ladies and gentlemen, thank you for standing by. I am Galley, your Chorus Call operator. Welcome and thank you for joining the Hepsiburada Conference Call and Live Webcast to Present an ...
D-MARKET Electronic Services & Trading(HEPS) - 2022 Q2 - Earnings Call Presentation
2022-09-28 18:40
hepsiburada Q2 2022 Results Presentation September 28, 2022 1 Disclaimer SUBTITLE BELOW THIS LINE NOTES START FROM HERE AND GROW UP 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 of changes in a general price index. IAS 29 does not establish an absolute rate when hyperi ...
D-MARKET Electronic Services & Trading(HEPS) - 2022 Q2 - Earnings Call Transcript
2022-09-28 18:38
Financial Data and Key Metrics Changes - In Q2 2022, the company reported a 57% GMV growth and a 63% revenue growth on an unadjusted basis, while adjusted for inflation, GMV and revenue declined by 10% and 6% respectively compared to the same quarter last year [17][40] - The gross contribution margin was 5% in Q2, reflecting a 2.8-percentage-point decline year-on-year but a 1.7-percentage-point improvement compared to Q1 2022 [18][47] - Positive free cash flow of TRY185 million was generated in Q2, a significant improvement from negative TRY1.8 billion in Q1 [18][54] Business Line Data and Key Metrics Changes - Active customer base grew by 18% to 11.7 million, and order frequency increased by 23% to 5.2% year-on-year [19] - The active merchant base increased to nearly 89,000, contributing to a doubling of SKUs to 130 million [20] - Revenue from advertising solutions (HepsiAd) grew by approximately 54% [43] Market Data and Key Metrics Changes - The Consumer Confidence Index was at an all-time low of 63% in June but showed signs of recovery, rising to 72% in August [9] - The annual inflation rate reached 79% by the end of June, with inflation accounting impacting financial reporting [10][11] Company Strategy and Development Direction - The company aims to enhance its ecosystem beyond e-commerce, focusing on logistics, financial services, and cross-border operations [8] - The introduction of Hepsiburada Smart Store and Hepsiburada Premium reflects the company's commitment to innovation and customer-centric solutions [22][23] - The company is focused on improving cash flow and profitability through disciplined cost management and operational efficiency [60][62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment, emphasizing the need for effective inventory management and cost control [71][72] - The company raised its GMV growth guidance for the full year from around 50% to approximately 60% [34][64] - Management expressed confidence in the path to profitability, expecting EBITDA to improve from negative 6.5% last year to a range of negative 2.5% to negative 3% this year [34][65] Other Important Information - The implementation of IAS 29 for inflation accounting has become mandatory, affecting financial reporting [36] - The company is expanding its fintech services, with HepsiPay Wallet reaching 8 million users and a Buy Now Pay Later solution being launched [32] Q&A Session Summary Question: Free cash flow comparison to Q2 2021 - Management explained that seasonality affects cash flow, with higher inventory purchases in Q4 leading to negative cash flow in Q1, but they are working to improve cash flow performance [69][70] Question: EBITDA guidance clarification - Management stated that they cannot provide adjusted EBITDA guidance due to various factors affecting inflation accounting [76] Question: GMV guidance and competitive dynamics - Management noted that consumer behavior is shifting towards more affordable products due to inflation, impacting average order value and GMV growth [81][90] Question: Free delivery share and Hepsiburada Premium pricing - Management indicated that around 65% to 67% of GMV is covered by 3P cargo costs, and Hepsiburada Premium is priced at TRY9.9 per month [103][106] Question: Impact of new e-commerce law - Management mentioned it is too early to assess the impact of the new e-commerce law but anticipates a more favorable operating environment over time [116][119]
D-MARKET Electronic Services & Trading(HEPS) - 2022 Q1 - Earnings Call Presentation
2022-06-01 15:54
hepsiburada Q1 2022 Results Presentation June 1, 2022 1 Forward Looking Statements SUBTITLE BELOW THIS LINE NOTES START FROM HERE AND GROW UP 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 Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, and encompasses ...
D-MARKET Electronic Services & Trading(HEPS) - 2022 Q2 - Quarterly Report
2022-06-01 10:01
Exhibit 99.1 Hepsiburada Announces First Quarter 2022 Financial Results ISTANBUL, June 1, 2022 - 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"), today announces its unaudited financial results for the first quarter ended March 31, 2022. First Quarter 2022 Financial and Operational Highlights Commenting on the results, Mr. Emirdag, CEO of Hepsiburada said: "We had a solid start to the ye ...