Jumia Technologies ( (JMIA) ) has released its Q3 earnings. Here is a breakdown of the information Jumia Technologies presented to its investors.
Jumia Technologies AG is a leading e-commerce platform in Africa, offering a wide range of products and services across multiple countries and aiming to enhance the digital shopping experience in the region.
In its third-quarter 2024 earnings report, Jumia Technologies reported significant financial shifts amid challenging macroeconomic conditions. The company highlighted a resilient top-line growth in constant currency and a significantly improved liquidity position, despite a decline in reported revenue.
Key financial metrics showed a revenue of $36.4 million, down 13% year-over-year, though up 9% in constant currency terms. Gross Merchandise Volume (GMV) also saw a decline of 1% but increased by 29% in constant currency. The company’s liquidity position improved significantly, with a $71.8 million increase, primarily due to an ATM offering. However, operating losses rose to $20.1 million, and adjusted EBITDA loss reached $17.0 million. Strategic decisions included ceasing operations in South Africa and Tunisia to focus on markets with stronger growth potential and expanding logistics and supplier networks.
Jumia remains committed to scaling its operations while managing cash efficiently. The company plans to utilize proceeds from its recent capital raise to support growth initiatives, including improving vendor technology and expanding customer acquisition efforts. Jumia projects an increase in orders and GMV, excluding foreign exchange impacts, as it continues to build on its strategy for profitable growth.
Looking ahead, Jumia’s management is optimistic about its strategic realignment efforts, which are expected to enhance operational efficiency and support the company’s path towards sustainable growth. The focus remains on improving profitability and expanding market presence in regions with high growth potential.
