D-Market Elektronik Hizmetler ve Ticaret A.S. (HEPS) Q2 Earnings call transcript Sep 11, 2024
1min read In the recent earnings call for Hepsiburada, the company showcased a resilient performance amidst the prevailing macroeconomic headwinds. The call, led by CEO Nilhan Onal Gokcetekin, CFO Seckin Koseoglu, and Investor Relations Director Helin Celikbilek, provided insights into the company's strategic initiatives, operational metrics, and financial performance.
Strategic Priorities and Financial Highlights
Hepsiburada reported a significant increase in GMV (Gross Merchandise Volume) in the second quarter, exceeding expectations and demonstrating a strong strategic focus on loyalty programs, logistics, and affordability solutions. The company's loyalty program, Hepsiburada Premium, has seen a remarkable success, attracting over 3 million subscribers, underscoring the program's value proposition.
The company also highlighted its strong logistics capabilities, with HepsiJet delivering 73% of total parcels dispatched during the quarter, reflecting the company's commitment to service excellence and differentiation. Furthermore, Hepsiburada's affordability solutions, such as Buy Now Pay Later and consumer finance loans, have gained traction, contributing to a 20% increase in GMV penetration.
Financially, Hepsiburada reported a solid performance, with GMV doubling compared to the first half of the previous year, and EBITDA reaching 2.4% of GMV. The company also noted a substantial increase in first-half free cash flow, marking the highest since its IPO. These figures demonstrate Hepsiburada's ability to navigate the challenging economic conditions while maintaining growth and profitability.
Key Themes and Trends
The call highlighted several key themes and trends, including the company's focus on loyalty, logistics, and affordability solutions, which are driving growth and differentiation. Hepsiburada's strategic investments in these areas are paying off, as evidenced by the success of its loyalty program, the expansion of its logistics capabilities, and the growing popularity of its affordability solutions.
Investor Questions and Management's Responses
During the Q&A session, key shareholders and investors posed questions regarding the company's guidance for the third quarter, the impact of holidays on GMV, seasonality of cash flow, and the shift towards marketplace business. Management provided detailed responses, highlighting the positive impact of strategic initiatives, the influence of seasonality, and the company's commitment to managing cash flow and improving EBITDA.
Looking Ahead
Looking ahead, Hepsiburada remains optimistic about its ability to execute on strategic initiatives in the second half of the year, despite the ongoing macroeconomic challenges. The company is focusing on expanding its marketplace business, leveraging its logistics capabilities, and continuing to innovate in the affordability solutions space. With these strategic priorities in place, Hepsiburada is well-positioned to continue its growth trajectory and navigate the economic landscape effectively.
In conclusion, Hepsiburada's second-quarter earnings call underscored the company's resilience and strategic focus, demonstrating its ability to navigate economic headwinds and drive growth through innovative solutions and strategic investments. The company's commitment to loyalty, logistics, and affordability is paying off, positioning Hepsiburada as a leader in the e-commerce landscape in Türkiye and beyond.