Joint Stock Company Kaspi.kz (KSPI) Q2 2024 Earnings Call Transcript
AInvestTuesday, Jul 23, 2024 12:13 pm ET
2min read
FEXDU --
KZR --
MBIN --

In the latest earnings call, Kaspi.kz, a leading digital platform in Kazakhstan, showcased its impressive financial performance and strategic initiatives for the second quarter and first half of 2024. With a focus on payments, marketplace, and fintech services, the company demonstrated a robust growth trajectory and a commitment to delivering value to its consumers and merchants.

Strategic Highlights

Mikheil Lomtadze, CEO and Co-Founder of Kaspi.kz, began the call by highlighting the company's remarkable growth across all its businesses. The Payments TPV was up 32% year-over-year, with revenue up 23% and net income up 22%. The Marketplace, which is now the fastest-growing business, saw GMV up 62% year-over-year, revenue 96% and net income 68%. The Fintech business also showed strong growth, with TFV up 43% year-over-year, revenue 23%, and net income plus 2%.

Marketplace Innovation and Growth

The Marketplace, a key area of focus for Kaspi.kz, has seen significant growth, with e-commerce now accounting for almost half of marketplace GMV. The GMV for e-commerce is up 113% in the second quarter, underscoring the strong demand for online shopping. Kaspi Postomats, a strategic initiative, has passed the milestone of 50% of e-commerce orders being delivered via this service, demonstrating its efficiency and popularity among consumers and merchants alike.

Fintech Expansion and Diversification

Kaspi.kz's fintech platform is also seeing strong growth, with TFV origination up 45% in the first half of the year. The company's focus on merchant financing and buy now, pay later options is driving this growth, with the loan-to-deposit ratio moving up from 74% to 85%. This shift signals the company's strategic move towards diversification and expansion beyond its core payment services.

Outlook and Future Plans

Looking ahead, Kaspi.kz is planning for 25% net income growth for 2024, with a Q4-weighted growth strategy. The company is also exploring opportunities for international expansion, aiming to bring its unique digital services and innovations to new markets. This strategic move reflects the company's confidence in its business model and its ambition to lead the digital transformation in the broader Central Asian region.

Earnings Call Insights

The earnings call provided a comprehensive overview of Kaspi.kz's financial performance and strategic direction. The company's focus on innovation, customer engagement, and market expansion is evident in its impressive growth figures and strategic initiatives. The call also shed light on the challenges and opportunities facing the digital marketplace in Kazakhstan, underscoring the company's role as a key player in the region's digital economy.

Conclusion

Kaspi.kz's Q2 financial results highlight its strong position in the digital marketplace in Kazakhstan. With a focus on innovation, growth, and customer engagement, the company is well-positioned to capitalize on the opportunities presented by the digital economy in the region. As it continues to expand its offerings and explore international opportunities, Kaspi.kz is poised to shape the future of digital services in Central Asia.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.