• Revenue: $45.7 million, down 23% year over year in USD, and down 2% in constant currency.
• Gross Profit: $23.9 million, down 36% year over year, or 18% on a constant currency basis.
• Adjusted EBITDA: Negative $13.7 million compared to negative $6 million in Q4 2023.
• Loss Before Income Tax: $17.6 million, a 3% increase year over year or 19% decline on a constant currency basis.
• Cash Burn: $30.6 million compared to $26.8 million in Q4 2023.
• Quarterly Active Customers: Increased by 8% year over year.
• Physical Goods Orders: Grew by 18% year over year.
• Marketing Spend: Reduced from $6.2 million in Q4 2023 to $4.8 million in Q4 2024.
• Net Promoter Score: Increased to 63, a 17-point year over year increase.
• 90 Days Repurchase Rate: Increased by 375 basis points year over year.
• Liquidity Position: $133.9 million, including $55.4 million in cash and cash equivalents.

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

Release Date: February 20, 2025

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

Positive Points

• Jumia Technologies AG (NYSE:JMIA) achieved an 18% year-over-year growth in physical goods orders in Q4 2024, indicating increased demand on their platform.
• Quarterly active customers increased by 8%, showcasing the strength and value of Jumia's platform.
• The company successfully reduced marketing spend from $6.2 million in Q4 2023 to $4.8 million in Q4 2024, demonstrating cost-efficient marketing strategies.
• Jumia's Black Friday sales event was a key growth driver, with strong performance in priority categories such as electronics and phones.
• The company improved its net promoter score to 63, a 17-point increase year-over-year, reflecting stronger customer loyalty and satisfaction.

Negative Points

• Jumia Technologies AG (NYSE:JMIA) experienced a 12% decline in GMV in USD terms, although it grew 13% year-over-year in constant currency, affected by currency devaluations and reduced corporate sales.
• Revenue for Q4 2024 was $45.7 million, down 23% year-over-year in USD, driven by lower corporate sales in Egypt.
• Adjusted EBITDA was negative $13.7 million, compared to negative $6 million in Q4 2023, indicating increased operational losses.
• Cash burn for the quarter was $30.6 million, up from $26.8 million in Q4 2023, partly due to one-time termination costs and increased working capital.
• The average order value for physical goods orders decreased from $45.5 in Q4 2023 to $35.5 in Q4 2024, driven by currency variations and lower corporate sales.

Q & A Highlights

Q: Can you provide more color on the trends you're observing in Q1 2025? A: Francis Dufay, CEO of Jumia Technologies AG, noted that they are seeing continued progress in growth and usage, which supports their guidance of 15% to 20% year-over-year growth. They are also observing strong execution and discipline on the cost side, which gives them confidence in their net loss guidance based on improved efficiency and cost management.

Q: Is there anything preventing Jumia from bringing on more selection to meet incremental demand? A: Francis Dufay explained that the challenge is more on the supply side rather than demand. Jumia is focused on increasing supply and improving value for money for customers. This involves operational improvements and a long list of actions, such as onboarding new suppliers and improving vendor experience. It's a gradual process rather than an immediate fix.

Q: Can you elaborate on the 1P versus 3P mix and the cyclical trends affecting it? A: Francis Dufay mentioned that they saw a decline in corporate sales, particularly in Egypt, which are largely first-party. This was due to reduced bulk purchases amid macroeconomic uncertainty. Jumia uses first-party sales when it provides better supply and value for money, and they do not foresee massive changes in the mix, excluding corporate sales impacts.

Q: What is driving the physical order growth and how does it affect average order value (AOV)? A: Physical order growth is driven by upcountry expansion, better assortment, and improved customer experience. The AOV is a consequence of the mix, and Jumia focuses on delivering the best value for money in priority categories. They ensure profitability at all levels, regardless of AOV, by maintaining the right economics.

Q: How does consolidating the warehouse footprint improve efficiency and costs? A: Francis Dufay explained that consolidating smaller warehouses into larger ones allows for better control over efficiency, productivity, and security. This structural change, mostly completed in the second half of 2024, is expected to lead to significant savings in fulfillment costs in 2025.

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