Jumia Technologies AG (JMIA) Q2 2024 Earnings Call Highlights: Navigating Currency Challenges ...

GuruFocus News
4 min read

In This Article:

  • Revenue: USD 36.5 million, down 17.2% year-over-year, up 15% on a constant currency basis.

  • GMV in Constant Currency: Grew 35% year-over-year.

  • GMV in USD: Declined by 5% year-over-year.

  • Orders Growth: Increased 6.9% year-over-year and 4.9% sequentially.

  • Gross Profit: USD 21.6 million, down 5.7% year-over-year, up 34.5% on a constant currency basis.

  • Gross Profit Margin: 12.7% of GMV, stable compared to 12.8% in Q2 '23.

  • Adjusted EBITDA Loss: USD 16.3 million, decreased year-over-year.

  • Loss Before Income Tax: USD 22.5 million, a 27.1% decrease year-over-year.

  • Cash Burn: Reduced from USD 19.1 million in Q1 2024 to USD 8.7 million in Q2 2024.

  • Liquidity Position: USD 92.8 million, comprising USD 45.1 million in cash and cash equivalents and USD 47.7 million in term deposits and financial assets.

  • Fulfillment Expense: USD 9.3 million, down 12.2% year-over-year.

  • Sales & Advertising Expense: USD 4.4 million, down 19.2% year-over-year.

  • Technology and Content Expense: USD 8.7 million, down 18.5% year-over-year.

  • G&A Expense (Excluding Share-Based Compensation): USD 17.6 million, up 1.9% year-over-year.

  • Quarterly Active Customers: Improved 6% quarter-over-quarter, flat year-over-year.

  • Orders Per Customer: Increased by 5.1% in Q2 2024.

  • Average Order Value (AOV) for Physical Goods: USD 39.2, down 7.1% year-over-year.

Release Date: August 06, 2024

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

Positive Points

  • Jumia Technologies AG (NYSE:JMIA) reported a 6.9% year-over-year increase in orders and a 4.9% sequential increase in Q2 2024.

  • GMV in constant currency grew by 35% year-over-year, indicating strong underlying business performance despite currency devaluations.

  • The company achieved a significant reduction in quarterly cash burn from $19.1 million in Q1 2024 to $8.7 million in Q2 2024.

  • Jumia's logistics network expansion, including new warehouses in Nigeria and Morocco, is expected to enhance supply chain management and operational efficiency.

  • The company reported a 46% 90-day repurchase rate from new customers in Q1 2024, demonstrating improved customer retention strategies.

Negative Points

  • Revenue in USD declined by 17.2% year-over-year in Q2 2024, impacted by currency devaluations in key markets like Nigeria and Egypt.

  • GMV in USD decreased by 5% year-over-year due to currency fluctuations, affecting the top-line performance.

  • Average Order Value (AOV) for physical goods decreased by 7.1% year-over-year, attributed to a shift in category mix.

  • The company experienced lower corporate sales in Egypt, impacting overall revenue.

  • Liquidity position decreased to $92.8 million in Q2 2024 from $120.6 million in Q4 2023, indicating a reduction in cash reserves.

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