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Kaspi.kz AO - $KSPI - Earnings Analysis: Strong growth in revenue and net income across all platforms.

By sagebytes in Technology —

Business Model

Kaspi.kz operates a two-sided Super App model, Kaspi.kz for consumers and Kaspi Pay for merchants, generating revenue through Payments, Marketplace, and Fintech platforms.

Revenue Sources

  • Payments Platform: Transaction fees from B2B, consumer card, and QR transactions.
  • Marketplace Platform: Commissions from e-commerce, m-commerce and travel bookings, advertising and delivery services.
  • Fintech Platform: Interest income from loans, fees from BNPL, merchant lending and deposits.

Income Statement Analysis

  • Revenue increased by 28% year-over-year, driven by growth in all platforms.
  • Costs and operating expenses increased by 29% year-over-year, higher than the revenue growth.
  • Net income increased by 28% year-over-year, reflecting strong bottom-line growth.

Balance Sheet Analysis

  • Total assets increased by 23%, reflecting overall growth and increased investments.
  • Total liabilities increased by 19%, indicating a manageable growth in obligations.
  • Total equity increased by 43%, driven by strong net income and retained earnings.
  • Total Liabilities increased by 19% indicating increased borrowing to fund asset growth but with health equity.

Capital Allocation

Kaspi.kz plans to fund the Hepsiburada acquisition from operating cash flow and is reducing dividends for 4Q 2024 and 1H 2025 to preserve cash. They intend to revisit the potential for returning excess cash to shareholders in the second half of the year. The company focus is on sustainable profitable growth.

Management Commentary

FY 2024 net income up 25% year-over-year – in line with guidance initially provided at the start of 2024.

Marketplace is our fastest growing platform with GMV up 39% and 44% in 4Q and FY 2024, respectively

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.

Overall Sentiment: Positive, reflecting confidence in continued growth and successful execution of strategic priorities.

Disclaimer: This report is for informational purposes only and not investment advice. The analysis is based on limited information and subject to change. Investing in securities involves risks, including potential loss of principal. Past performance doesn't guarantee future results. Always conduct your own research, understand the risks, and consult a financial professional before making investment decisions.