Jumia Technologies AG Q3 FY2025 earnings call

• Customer demand and order growth accelerated, with physical goods GMV and orders showing strong increases. • Continued usage acceleration across the platform, with active customers up 22% year-over-year adjusted for perimeter effects. • Upcountry expansion driving growth, with orders from upcountry regions making up 60% of total volumes. • Expanded international seller partnerships, sourcing 3.4 million growth items from China up 52% year-over-year. • Strong country-level performance: Nigeria, Kenya, Ivory Coast, Egypt, Ghana all saw growth in orders and GMV. • Cost efficiencies achieved: Fulfillment cost per order down 22% to $1.86, technology and content expenses down 10%, adjusted EBITDA loss improved to $14 million.

Physical goods GMV grew by 26% when adjusting for perimeter effects and 37% when excluding corporate sales. Physical goods orders grew 34% year-over-year adjusted for perimeter effects. Core physical goods represented 100% of total orders and nearly all GMV. Revenue for the third quarter was $45.6 million, up 25% year-over-year. Marketplace revenue was $21.5 million, up 4% year-over-year; third-party sales were $19 million, up 5%; marketing and advertising revenue was $1.3 million, down 24%; value-added services revenue was $1.1 million, up 59%; first-party sales revenue was $23.8 million, up 54%.

• Physical goods order growth expected in the range of 25%-27%. • GMV growth projected between 15%-17% year-over-year. • Loss before income tax expected to be approximately negative $55 million to $50 million in 2025. • Maintain 2026 loss before income tax target of negative $25 million to $30 million, aiming for breakeven in the fourth quarter of 2026 and full year profitability in 2027.

Q: On the guidance for PBT, how is the attribution?

A: Expect significant seasonality-driven usage acceleration in Q4, with fulfillment cost per order at $1.86 being the new baseline and continued cost improvement.

Q: On order growth and GMV visibility, A: Slight adjustments based on mid-quarter trends, with no massive shift in market dynamics.

Q: On supply access in Q4, A: Positive trends with currency stability and Chinese manufacturers shifting to Africa.

Q: On Jumia Instant, A: Pilot in Nairobi for 4-hour delivery, with neutral net profit impact as costs are passed to customers.

Q: On active customer growth, A: Driven by better assortment, new markets, and refined marketing, broad-based across key markets.

Q: On upcountry expansion, A: Still in early stages with plans to expand in Nigeria, Kenya, Egypt.

Q: On advertising monetization, A: Currently 1% of GMV, with upside potential to 2% of GMV by leveraging retail advertising and scale.