• Payments TPV Growth: 30% in Q4.
• Payments Net Income Growth: 22% in Q4.
• Payments Revenue Growth: 19% in Q4.
• Marketplace GMV Growth: 39% in Q4.
• Marketplace Revenue Growth: 43% in Q4.
• Marketplace Net Income Growth: 32% in Q4.
• Fintech Financing Volumes Growth: 21% in Q4.
• Fintech Net Income Growth: 28% in Q4.
• Consolidated Revenue Growth: 28% in Q4.
• Consolidated Net Income Growth: 28% in Q4.
• Annual Revenue Growth: 32% for 2024.
• Annual Net Income Growth: 25% for 2024.
• e-Grocery GMV Growth: 97% in 2024.
• e-Grocery Transactions Growth: 84% in 2024.
• Delivered Orders Growth: 128% in 2024.
• Kaspi POS Register Usage: 35% of merchants.
• Advertising Service Usage: 51,000 merchants.
• Business Deposit Growth: 443% in 2024.
• Loan Origination Growth: 21% in Q4.
• Loan Portfolio Growth: 37% in Q4.
• Deposits Growth: 23% in Q4.
• Fintech Revenue Growth: 26% in Q4.
• Fintech Bottom Line Growth: 28% in Q4.

• Warning! GuruFocus has detected 3 Warning Signs with KSPI.

Release Date: February 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kaspi.kz JSC (NASDAQ:KSPI) reported strong growth across all platforms, with payments TPV growing 30% and marketplace GMV increasing by 39% in Q4 2024.
• The company's fintech business showed significant improvement, with financing volumes growing 21% and net income increasing by 28% in Q4 2024.
• Kaspi.kz JSC (NASDAQ:KSPI) continues to diversify its revenue streams, with a balanced contribution from payments, marketplace, and fintech platforms.
• The e-Grocery segment demonstrated impressive growth, with GMV increasing by 97% and transactions by 84% in 2024.
• Kaspi.kz JSC (NASDAQ:KSPI) successfully launched new products like gift cards and business deposits, which have been well-received by consumers and merchants.

Negative Points

• The company's fintech revenue growth was slower than expected, with a 12% increase for the full year, partly due to rising interest rates in December.
• Kaspi.kz JSC (NASDAQ:KSPI) faces challenges in maintaining fintech margins due to yield dilution and higher interest rates.
• The geopolitical environment in Kazakhstan and regional conflicts could impact investor perception and economic stability.
• Currency volatility remains a concern, with the tenge weaker against the dollar, affecting financial results in dollar terms.
• The integration and strategic direction of Hepsiburada, a recent acquisition, remain uncertain, with potential challenges in aligning operations and management.

Q & A Highlights

Q: Can you explain the rationale behind the 20% growth guidance for 2025, given the higher exit rates in 2024? A: David Ferguson, Managing Director, Head of Investor Relations, explained that the guidance reflects the scale of the business and the current economic environment. He emphasized that the trends from 2024 are expected to continue into 2025, with some adjustments due to changes in interest rates and market conditions. The guidance is not overly conservative or aggressive but reflects a realistic outlook.

Q: What are the plans for integrating Hepsiburada and expanding internationally? A: Mikheil Lomtadze, CEO, stated that Hepsiburada provides a strong foundation for Kaspi's international expansion. The focus will be on leveraging Kaspi's expertise in mobile services and consumer engagement. While Hepsiburada will operate independently, Kaspi plans to explore launching its own services in Turkey, aiming for innovation and quality improvements.

Q: How is the macroeconomic environment in Kazakhstan affecting Kaspi's business? A: David Ferguson noted that the macro environment remains stable and predictable, with consistent consumer and merchant trends. He acknowledged some currency volatility and interest rate changes but emphasized that these are manageable and align with global trends. The overall outlook remains positive, with potential for future growth as conditions normalize.

Q: What is Kaspi's approach to managing Hepsiburada's operations and strategy? A: Mikheil Lomtadze clarified that Kaspi will act as a strategic investor, focusing on product innovation and service quality. Hepsiburada's management will continue to operate independently, with Kaspi providing support and guidance through its board involvement. The goal is to enhance Hepsiburada's offerings without imposing drastic changes.

Q: How does Kaspi plan to handle regulatory changes and potential impacts on its business model? A: David Ferguson assured that Kaspi is well-positioned to adapt to regulatory changes, having navigated similar challenges in the past. The company actively participates in discussions with stakeholders and remains committed to maintaining a compliant and resilient business model. No immediate regulatory threats are anticipated.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.