KSPI Joint Stock Company Kaspi KZ

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 informationDavid Ferguson, david.ferguson@kaspi.kz +44 7427 751 275