Kaspi.kz 4Q and FY 2024 Financial Results

Rhea-AI Summary

Kaspi.kz (NASDAQ:KSPI) reported strong financial results for Q4 and FY 2024. The company achieved 25% year-over-year net income growth and 32% revenue growth in FY 2024, meeting initial guidance. The Marketplace platform showed exceptional performance with GMV up 44% in FY 2024, driven by e-Commerce growth of 85%. Payments and Marketplace platforms contributed 69% of FY 2024 consolidated net income.

Key highlights include: Kaspi Delivery orders increased 128% YoY to 99 million in FY 2024, e-Commerce Take Rate improved to 11.3%, and e-Grocery GMV grew 97%. The Fintech Platform saw TFV growth of 30% in FY 2024, with Merchant & Micro Business Finance reaching 17% of TFV. The company completed the acquisition of 65.41% of Hepsiburada in January 2025 for an initial payment of $600 million, with $526.9 million due within 6 months.

Looking ahead, Kaspi.kz projects approximately 20% YoY consolidated net income growth for 2025, excluding impact from Turkish operations.

Positive

• Net income increased 25% YoY in FY 2024
• Revenue grew 32% YoY in FY 2024
• Marketplace GMV up 44% in FY 2024
• e-Commerce GMV grew 85% YoY in FY 2024
• Kaspi Delivery orders increased 128% to 99 million in FY 2024
• Payments and Marketplace platforms contributed 69% of total net income
• e-Commerce Take Rate improved by 30 bps to 11.3% in FY 2024

Negative

• Higher interest rates may slow Fintech funding cost moderation
• Additional $526.9 million payment due for Hepsiburada acquisition
• Challenging consumer environment in Turkish market

Insights

Financial Analyst

Kaspi.kz's FY 2024 results demonstrate the company's successful execution of its super-app strategy, with particularly impressive performance in its high-margin Marketplace and Payments segments. The structural shift in income contribution is noteworthy, with these two segments now accounting for 69% of net income, up from 66% in FY 2023, indicating a strategic pivot toward higher-margin, more scalable revenue streams.

The e-Commerce division stands out as the company's growth engine, with 85% YoY GMV growth in FY 2024. This exceptional performance is underpinned by strategic investments in infrastructure, particularly the Kaspi Postomat network, which now handles over 50% of e-Commerce deliveries. The 128% YoY growth in delivery orders to 99 million demonstrates strong network effects and improving unit economics.

The company's merchant-focused innovation strategy is bearing fruit, with new products strengthening its competitive moat. The adoption of Kaspi POS Register by 35% of merchants within its first year indicates strong product-market fit and creates additional switching costs for merchants. The introduction of Business Deposits and Buy-Inventory-Now-Pay-Later services further embeds Kaspi.kz into merchants' operational workflows, potentially driving higher transaction volumes and deposits.

The Hepsiburada acquisition marks a pivotal expansion into Turkey's larger market, though execution risks exist given the challenging economic environment. The $1.13 billion total investment will be funded through a combination of immediate cash payment and operating cash flow, reflecting strong financial flexibility.

While the Fintech segment showed moderate growth with net income up 12% YoY, the platform's performance improved in Q4 as funding costs stabilized. However, the guidance suggests continued pressure from higher interest rates, which may impact funding costs more than previously anticipated.

The 20% net income growth guidance for 2025 (excluding Turkey) appears conservative given the strong momentum in e-Commerce and Payments, potentially providing upside if execution remains strong and macroeconomic conditions stabilize.

ALMATY, Kazakhstan, Feb. 24, 2025 (GLOBE NEWSWIRE) -- Joint Stock Company Kaspi.kz (“Kaspi.kz”, “we”) (Nasdaq:KSPI) which operates the Kaspi.kz and Kaspi Pay Super Apps, today published its consolidated IFRS financial results for the quarter and fiscal year ended 31 December 2024 (“4Q 2024” and “FY 2024,” respectively).

4Q 2024 & FY 2024 Highlights

• FY 2024 net income up 25% year-over-year (“YoY”) – in line with guidance initially provided at the start of 2024. Revenue up 32% YoY.
• In 4Q 2024 revenue and net income both increased 28% YoY. As we expected, Marketplace GMV growth accelerated in the final quarter of the year. Fintech net income growth accelerated materially from 3Q to 4Q 2024 as the interest rate cut in the first half of 2024 translated into more moderate growth in our funding costs.
• Our Payments and Marketplace Platforms continued to grow their bottom line at a significantly faster rate than Fintech, accounting for 69% of FY 2024 consolidated net income, up from 66% in FY 2023.
• Marketplace is our fastest growing platform with GMV up 39% and 44% in 4Q and FY 2024, respectively:
  • Marketplace purchases were up 48% and 42% YoY in 4Q and FY 2024, respectively.
  • Revenue and net income up 43% and 32% YoY in 4Q 2024, respectively, and for FY 2024 up 64% and 41% YoY respectively.
• Within Marketplace, e-Commerce is the fastest engine of growth:
  • e-Commerce GMV was up 67% and 85% YoY in 4Q and FY 2024, respectively.
  • e-Commerce Take Rate was up 10 bps and 30 bps to 11.6% and 11.3% YoY in 4Q and FY 2024, respectively.
  • Kaspi Delivery orders delivered were up 128% YoY to 99 million in FY 2024. Kaspi Postomats accounted for >50% of e-Commerce deliveries.
  • Digital Gift Cards launched in 4Q 2024 and are an innovative way to boost Super App engagement and drive Marketplace transactions higher.
• e-Grocery top-line keeps growing fast:
  • GMV up 97% YoY in FY 2024 with 858K active consumers.
• Following the acquisition of Kolesa in 2023, we made scaling our e-Cars marketplace an important priority in 2024:
  • e-Cars GMV momentum was strong throughout the year and in 4Q 2024 increased 62% compared to 1Q 2024 to KZT239 billion.
• Kaspi Travel is still growing rapidly:
  • GMV up 30% and 34% YoY in 4Q 2024 and FY 2024 respectively.
  • We launched Kaspi Tours, a vacation package holidays marketplace approximately 18 months ago and expect international package holidays to increasingly contribute to Kaspi Travel’s GMV growth. In FY 2024 Tours GMV reached 9% of Travel’s GMV.
• In Payments, strong top-line continues to reflect in bottom-line results:
  • Payment’s transactions were up 33% and 40% YoY in 4Q and FY 2024, respectively.
  • B2B Payments remains the fastest-growing component of TPV.
  • Kaspi POS Register, launched in 2023, is now used by 35% of Kaspi Pay merchants. Enhances Kaspi Pay’s offering, as merchants can create a product catalogue, accept payments and issue tax invoices.
  • Payment’s revenue and net income were up 19% and 22% YoY in 4Q 2024, respectively, and for FY 2024 were up 23% and 24% YoY, respectively. Once again, tight cost control led to full-year Payments Platform profit growth ahead of revenue growth.
• Fintech Platform TFV growth was up 21% and 30% YoY in 4Q 2024 and FY 2024, respectively:
  • Merchant & Micro Business Finance is our fastest growing lending product and at 17% of TFV in FY 2024 is increasingly meaningful in size. Car financing integrated with Kolesa.kz is also growing fast.
  • Dedicated Business Deposit for merchants launched in 3Q 2024.
  • Buy-Inventory-Now-Pay-Later (BINPL) for merchants launched in 4Q 2024. We pay the supplier immediately and the merchant pay us within 30 days.
  • Business Deposit & BINPL are two new additional reasons for merchants to transact and keep more of their funds with us.
  • Lower growth in funding costs and stable Cost of Risk contributed to accelerating Fintech net income growth in 4Q 2024. Fintech’s revenue and net income were up 26% and 28% YoY in 4Q 2024, respectively, and for FY 2024 were up 25% and 12% YoY, respectively.
  • Higher interest rates at the end of 2024 are likely to result in Fintech funding costs now moderating more gradually, than we had expected at the time of our 3Q 2024 results.
• Transaction to acquire 65.41% of Hepsiburada closed in January 2025. Initial $600 million cash payment was made with a further $526.9 million to be made no later than 6 months post-closing. The outstanding payment will be funded from operating cash flow generated by Kaspi.kz in 1H 2025. Hepsiburada & Türkiye significantly expands our addressable market and medium-term growth potential.
• We expect Kaspi.kz to deliver another strong year of profitable growth and expect consolidated net income growth around 20% YoY for 2025. This guidance excludes any impact from our business in Türkiye.

To the shareholders of Kaspi.kz:

I’m pleased to report another set of operating and financial results that reflect our team’s excellent execution. In the final quarter of 2024, all our platforms had a strong end to the year. Kaspi.kz’s full-year bottom-line growth of 25% year-over-year is in line with our guidance. Once again, the strength and predictability of our Super App business model has shown itself and we start 2025 on the front foot.

I will discuss our performance and outlook shortly, but it is worth taking a moment to reflect on two important milestones delivered in 2024, that better position Kaspi.kz for the next leg of its growth journey.

First, our listing on Nasdaq. This allowed us to showcase our unique Super App business model to a larger pool of investors than ever before. It’s true that life as a listed company in the US hasn’t been completely plain sailing, but just one year later the breadth and depth of our shareholder base has increased significantly. With improved liquidity and as our team keeps executing, we believe the pool of investors with whom we can engage should keep expanding.

Second, our investment in Hepsiburada. Those of you that have followed us over the years will know that we have long sought an opportunity to scale our Super App expertise across a larger geographical footprint. Although the near-term consumer environment is challenging as its economy getting back on track, we believe Türkiye offers no shortage of opportunities to develop digital products for consumers and merchants. Hepsiburada is a strong consumer facing platform and gives us a head start that is extremely hard to come by. This year is all about putting in place rock solid foundations for our long-term strategy in Türkiye, with the aim of ensuring our enlarged business can deliver for many more years to come. Please keep in mind we’re still only 3 weeks in the door. We will share more details with you as the year progresses.

Turning back to Kazakhstan and our results in 2024, our top priority is always to grow transactions between consumers and merchants. You can see that we’re delivering, with monthly transactions per active consumer hitting a record high 73, Payment’s transactions up 40% year-over-year and Marketplace purchases up 42%. Its strong transaction activity that resulted in rapid financial growth across our business.

We continue to make good progress across our entire product range, but Marketplace and specifically e-Commerce remains our most important growth engine with purchases growing 123% year-over-year. The efforts we have made over several years in merchant expansion, the rollout of Kaspi Postomats and e-Grocery, have always yielded strong results, but our scale is now on another level. We believe that the e-Commerce market in Kazakhstan offers years of strong, structural growth to come. Kaspi e-Commerce is the market leader, and we believe e-Commerce has the potential to be the single biggest opportunity for us over the next couple of years.

In 2024, product innovation continued at pace, with a strong focus on the merchant side of our business. Kaspi POS Register is now used by 35% of our merchants, enhancing the value of Kaspi Pay. We also launched Brand Advertising, a dedicated Business Deposit and Buy-Inventory-Now-Pay-Later service. All these products give merchants more reasons to be with us. We will keep working hard to ensure we remain front and centre of our merchant’s needs and continue delivering added value beyond payments.

The first quarter of the year is on track and we’re excited about the year ahead in both Kazakhstan and Türkiye. With our expectation of net income growth of around 20% year-over-year, 2025 has the potential to be another strong year for Kaspi.kz. This guidance excludes any impact from our business in Türkiye.

As always, I would like to thank every Kaspi.kz employee for their incredible execution and dedication to our consumers, merchants and partners. To our long-term shareholders, thank you for your ongoing trust and support.

Mikheil Lomtadze
Kaspi.kz CEO and co-founder

Click on, or paste the following link into your web browser, to view the full announcement.
http://ml.globenewswire.com/Resource/Download/b2a25e63-a825-4156-b979-91816ab97d47

For further information
David Ferguson, david.ferguson@kaspi.kz +44 7427 751 275 

FAQ

What was Kaspi.kz (KSPI) revenue growth in FY 2024?

Kaspi.kz reported 32% year-over-year revenue growth in FY 2024.

How much did Kaspi.kz (KSPI) e-Commerce GMV grow in 2024?

Kaspi.kz's e-Commerce GMV grew 85% year-over-year in FY 2024.

What is Kaspi.kz (KSPI) net income growth guidance for 2025?

Kaspi.kz expects approximately 20% year-over-year consolidated net income growth for 2025, excluding Turkish operations.

How much did Kaspi.kz (KSPI) pay for Hepsiburada acquisition?

Kaspi.kz made an initial payment of $600 million with an additional $526.9 million due within 6 months for 65.41% of Hepsiburada.

What was Kaspi.kz (KSPI) Marketplace GMV growth in Q4 2024?

Kaspi.kz's Marketplace GMV grew 39% year-over-year in Q4 2024.