Ladies and gentlemen, thank you for standing by. I am Galley, your Chorus Call operator. Welcome and thank you for joining the Hepsiburada Conference Call and Live Webcast to Present and Discuss the Third Quarter 2022 Financial Results. All participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by a question-and-answer session. [Operator Instructions] At this time, I would like to turn the conference over to Ms. Helin Celikbilek, Investor Relations Director. Ms. Celikbilek, you may now proceed.

Thanks, Galley. Thank you for joining us today for Hepsiburada's third quarter 2022 earnings call. I’m pleased to be joined on the call today by our CEO, Murat Emirdag; and our CFO, Korhan Oz. The following discussion, including responses to your questions reflect management’s views as of today’s date only. We do not undertake any obligation to update or revise this information except as required by law. Certain statements made on today’s call are forward-looking statements and actual results may differ materially from these forward-looking statements. Please refer to today’s earnings release, as well as the risk factors described in the Safe Harbor slide of today’s supplemental deck, today’s press release, the 6-K, our Form 20-F filed with the SEC on May 2, 2022, and other SEC filings for information about factors, which could cause our actual results to differ materially from these forward-looking statements. Also, we will reference certain non-IFRS measures during today’s call. Please refer to the appendix of our supplemental slide deck, as well as today’s press release for a presentation of the most directly comparable IFRS measures, as well as the relevant IFRS to non-IFRS reconciliations. As a reminder, a replay of this call will also be available on our Investor Relations website. With that, I will hand it over to our CEO, Murat.

Thank you, Helin. Welcome everyone and thank you for joining us today. I will begin a summary of our quarterly highlight and continue with an update on our operations. I will then turn the call over to Korhan for an in-depth discussion on our financial figures. Now, let's have a brief look at our third quarter platforms. Next slide. In the third quarter, we showed consistent progress in our results despite continuing challenges in the macro environment when inflation in Türkiye has continued to rise, reaching about 80%. On an unadjusted for inflation basis, our GMV growth was 66% in the third quarter and 68% in the first nine months of 2022 compared to the same periods of last year. Adjustment for inflation, our GMV declined by 9% in the third quarter bringing the first nine month GMV growth to minus 1%. On an adjusted for inflation basis, revenue growth was 7%. We delivered 8.4% gross contribution margin in Q3 with a 4.5 percentage points year-on-year improvement compared to the same quarter growth last year. Fueled by the continued momentum in active customers and older frequency, we achieved 26% older growth during the third quarter contributing to 29% growth in the first nine months of 2022. Before I touch upon our EBITDA performance, I would like to summarize our recent development and point out its effect on our financials. As we close, we have reached a Settlement agreement related to the both putative class action lawsuits in the U.S. Hepsiburada agreed to pay $13.9 million to resolve the these lawsuits in entirety. The Settlement remains subject to approval and or entry of judgment by the respective course. As part of prudent management, we have booked a provision expense for the total at approximately TRY258 million corresponding to $13.9 million. These…

Thank you, Murat, and welcome everyone. In the third quarter on an unadjusted for inflation basis, we generated TRY10.7 billion GMV corresponding to 66% year-on-year growth. Adjusted for inflation, the GMV became TRY11 billion, indicating a 9% decline compared to Q3 of last year. This decline was mainly due to the below inflation rise in our average order value, similar to the second quarter performance, while we recorded continued order growth. The full impact of inflation does not necessarily get reflected on our GMV growth due to several reasons, including customer tendency to substitute for budget-friendly choices and partial holdback in purchase decisions in certain categories. We also believe that other factors such as inventory carryover and competitive market dynamics might affect selling prices in certain categories. Meanwhile, the share of marketplace GMV was around 68%, which was 70% year ago and 64% in the second quarter of this year. This GMV mix may fluctuate from one quarter to another since it's impacted from several factors, including but not limited to, macroeconomic environment, customer behavior, campaign calendar and inventory dynamics during the quarter. On the next slide, I would like to discuss our revenue performance. On an unadjusted for inflation basis, our revenue grew by 93% in Q3, compared to the third quarter of last year. When adjusted for inflation, our revenue increased by 7%. The reason behind 7% revenue growth despite the 9% GMV decline is mainly due to our strategic decision to focus on improving the profitability and therefore cutting back on campaigns and discounts compared to the same period of last year. The 2 percentage points shipped in GMV mix in favor of 1P also had an impact on this result. 7% revenue growth was mainly achieved by nearly six-fold growth in our marketplace revenue, 10% increase…

Ladies and gentlemen, at this time we will begin the question-and-answer session. [Operator Instructions] Ladies and gentlemen, there are no questions at this time. I will now turn the conference over to management for any closing comments. Thank you. I'm sorry, I apologize. We do have a question Mr. Unal Cem with Goldman Sachs. Please go ahead.

Thanks, Murat and Korhan for the presentation, and also on your new roadmap. My question will be related to the new e-commerce loss, and I'd like to understand how do you expect to see the impact on the profitability post significant reduction in advertisement and the promotion budgets as indicated by the new e-commerce loss in 2023? And how do you see this to impact competition and your market share as well as the GMV growth going forward? And also, did you start to see -- did you already start to see some kind of easing in aggressive discount and advertising spend from the competitors within this fourth quarter? And also going forward, if there will be any kind of improvement in the cash on lower spending, how do you plan to spend this excess cash? Thank you very much.

Thank you, Jim. I guess I will leave the floor to Korhan for cash, but I will answer the other questions first. With respect to like first to your comment with respect to competitive landscape, I guess, we believe it's fair to say that the market continues to be competitive, where the cost of marketing and cost of growth remains still high. So I guess it is still valid based on our observations. And with respect to regulatory changes, like you mentioned, we expect the loss to be in effect by January 1, 2023. So, it is yet to be observed within New Year, but we believe the new regulatory framework will bring a more open, transparent and fair operating environment for all players. With that said, as we discussed, we are already getting ready and prepared for the publicly shared time line as of January 1, 2023. And as you also mentioned, the first impact of regulatory framework is seemed to be the restrictions on marketing spending and promotional discounts. And as a team, we are already actively working towards that timeline, which is January 1, 2023. With that said, maybe just as a side note, as you can see from our numbers and also provided in announcements, we have been actively working on increased marketing efficiency, and we are already actually implementing those efficiency points into our execution as we speak, regardless of the regulatory framework. Let me stop here and hand over to Korhan for the cash question.

Thank you, Cem, for the question. On the cash side, there will be a reduction in the payment terms for the merchants and we are in a position to calculate the impact because the newcomers and the existing merchants will differentiate for the first six months and going forward. To create excess cash, it depends on the GMV and how we distribute our promotions among the months and so on. So, this is under progress and in the coming quarters, we will be talking more about our cash flow projections. Thank you.

[Operator Instructions] Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to management for any closing comments. Thank you.

Thank you. Before we close our call, thank you all once again for participating in our results announcement call and for your kind support over the years, much appreciated. I would like to take one more minute to thank our founder, board of directors, the executive and the management team for their trust and relentless support to me to Hepsiburada's mission over the years. And I also would like to express my gratitude to our customers and business partners, the investment community and to the rest of the Hepsiburada community who have been part of this amazing journey. Thank you again and goodbye.

Ladies and gentlemen, the conference is now concluded and you may disconnect your telephone. Thank you for calling and have a good afternoon.