Core Insights - Jumia Technologies AG reported a significant increase in physical goods orders and GMV for the two months ended November 30, 2025, indicating strong operational performance and growth [1] Group 1: Performance Metrics - Physical goods orders increased by 30% year-over-year for the two months ended November 30, 2025 [1] - Physical goods GMV (Gross Merchandise Value) increased by 35% year-over-year for the same period [1] - Excluding corporate sales, physical goods GMV grew by 41% year-over-year [1] Group 2: Regional Performance - Nigeria showed strong performance with physical goods orders up 28% and physical goods GMV up 45% year-over-year for the two months ended November 30, 2025 [1] Group 3: Event Impact - The results reflect a successful Black Friday event that took place from October 31 to November 30, 2025, contributing to the overall growth in key operational metrics [1] Group 4: Exclusions - All reported KPIs exclude results from South Africa and Tunisia, as Jumia exited these markets in late 2024 [1]

Core Insights - Jumia Technologies experienced a 16.2% stock rally in November, driven by a sell-side analyst significantly raising the price target after the company's earnings report and Investor Day [2][3] Financial Performance - In Q3, Jumia reported a 25% revenue increase to $45.6 million, with gross merchandise volume (GMV) rising by 21% and operating losses narrowing by 13% to ($17.4 million) [4] - The company has completed a multi-year restructuring phase aimed at improving profitability, which involved exiting unprofitable markets and streamlining operations [5] Long-term Outlook - Management provided optimistic long-term targets, projecting profitability and positive free cash flow by 2027 [6] - Jumia anticipates GMV growth at a 20% compound annual growth rate, increasing from $0.8 billion today to between $2.5 billion and $3.0 billion by 2030 [7] - The company plans to enhance profitability by increasing its "take rate" by 2 to 2.5 percentage points and reducing costs as a percentage of revenue as it scales [8]

Core Insights - Jumia Technologies has reached a significant milestone in its journey towards becoming a key player in African e-commerce, as stated by CEO Francis Dufay during the Q3 earnings call [1] Company Summary - Jumia has reached an inflection point in its business model, indicating a potential shift towards sustained growth and profitability [1]

Core Insights - Jumia Technologies AG is positioned as an online shopping platform similar to Amazon, specifically targeting the African market [1] Company Overview - Jumia operates across multiple African countries, providing a wide range of e-commerce services [1] - The company is categorized as a small- to mid-cap entity, which often attracts less attention from investors compared to larger firms [1] Market Position - Jumia's business model reflects the growing trend of e-commerce in Africa, indicating potential for significant market growth [1]

Summary of Jumia Technologies Investor Day Company Overview - **Company**: Jumia Technologies (NYSE: JMIA) - **Event**: 2025 Investor Day - **Date**: November 13, 2025 Industry Insights - **Market Size**: The addressable e-commerce market in Africa is projected to reach **$40 billion by 2029** across nine recovering markets [1] - **Population Growth**: Africa's population is expected to grow from **1.5 billion today to 2.5 billion by 2050**, a **60% increase** [2] - **Low GDP per Capita**: Average GDP per capita in the markets where Jumia operates is around **$2,000** [2] - **Internet Penetration**: Internet access is improving, with penetration expected to rise from **14% to 38%** over the next decade [3] Core Business Model and Strategy - **Unique Business Model**: Jumia is focused on creating a business model tailored to the unique challenges of the African market rather than copying models from other regions [1] - **Marketplace Flywheel**: The company aims to create a positive feedback loop where increased demand leads to more sales, attracting more vendors and brands, which in turn generates more sales [5] - **Focus on Lower Middle Class**: Jumia targets the lower middle class in Africa, defined as individuals earning between **$150 and $500 per month**, which represents a significant portion of the population [42][44] Operational Changes and Restructuring - **Restructuring Phase**: Jumia underwent a significant restructuring starting in late 2022, focusing on cost management and rebuilding its value proposition [18] - **Staff Reduction**: The company reduced its workforce from **4,500 to 2,000 employees** to streamline operations and cut costs [23] - **Fulfillment Cost Reduction**: Fulfillment costs per order decreased from **$3.4 to $1.9**, a reduction of nearly **50%** [33][55] - **Marketing Budget Cuts**: Marketing expenses were reduced by **75%**, from **$15 million** to **$3 million** [36][55] Financial Performance - **Operating Loss**: Operating losses decreased from **$200 million to $70 million** [55] - **Cash Burn**: Cash burn reduced from nearly **$300 million in 2022 to $82 million** [55] - **Contribution Margin**: Contribution margin per order improved from **$1.9 to $2.3** [55] Market Challenges - **Unique Challenges**: The African e-commerce market faces challenges such as low disposable income, fragmented markets, immature logistics, and varying shopping behaviors across regions [11][12] - **Trust Issues**: There are significant trust issues among consumers regarding online transactions, which Jumia aims to address through improved operations and customer engagement [12] Future Outlook - **Path to Profitability**: Jumia aims to achieve breakeven by **2027**, focusing on sustainable growth and improved unit economics [41][55] - **Expansion Plans**: The company is expanding its logistics network to cover more remote areas, increasing accessibility for underserved populations [52] Key Performance Indicators (KPIs) - **Repurchase Rate**: The 90-day repurchase rate for new customers increased from **39% to 43%** over three years [47] - **Customer Satisfaction**: Net promoter score improved from **46 to 64**, indicating higher customer satisfaction [48] Conclusion - **Strategic Positioning**: Jumia believes it is well-positioned to capitalize on the growing e-commerce market in Africa, with a unique business model and a focus on affordability and accessibility for the lower middle class [8][10]

Investor Day 13 November 2025 Disclaimer IMPORTANT NOTICE The information set forth herein does not purport to be complete or to contain all of the information a prospective investor may require. The forward-looking statements contained in this presentation are made as of the date hereof. Except as required by law, we undertake no obligation to update publicly or otherwise revise any forward-looking statements, or the assumptions and risks affecting such forward-looking statements, whether as a result of ne ...

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Core Viewpoint - Activist investor Pleasant Lake Partners disclosed a 9.7% stake in African e-commerce platform Jumia, which reported a significant 25% increase in Q3 revenue, reaching $45.6 million [1] Group 1 - Pleasant Lake Partners holds a 9.7% stake in Jumia [1] - Jumia's Q3 revenue increased by 25% [1] - Jumia's Q3 revenue reached $45.6 million [1]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $45.6 million, up 25% year over year, or up 22% on a constant currency basis [18] - Adjusted EBITDA loss improved to $14 million compared to $17 million in the same quarter last year [10] - Loss before income tax was $17.7 million, a 1% decrease year over year [10][24] Business Line Data and Key Metrics Changes - Physical goods GMV grew by 26% year over year, and by 37% when excluding corporate sales [4][7] - First-party sales increased by 54% year over year, driven by strong momentum with key international brands [20] - Marketing and advertising revenue totaled $1.3 million, down 24% year over year [19] Market Data and Key Metrics Changes - Active customers increased by 22% year over year, marking the highest increase in the past three years [7] - Orders from up-country regions represented 60% of total volume this quarter, up from 54% in the same quarter last year [11] - Nigeria's physical goods orders were up 30% year over year, while Kenya saw a 56% increase [12][13] Company Strategy and Development Direction - The company aims to achieve full-year profitability by 2027, focusing on efficiency, disciplined execution, and strategic investments [5][27] - Jumia is phasing out non-core digital transactions to streamline operations and enhance efficiency [6] - The company is expanding its logistics and commercial infrastructure to serve secondary cities and rural regions [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, citing strong customer demand and operational improvements [9][27] - The competitive environment remains stable, with some global entrants pulling back in markets like Nigeria [16] - Management highlighted the importance of adapting to local market conditions to maintain a competitive edge [55] Other Important Information - The average order value for physical goods in Q3 2025 was $35, down from $38 in Q3 2024 [8] - The total headcount declined by 7% since December 2024, reflecting a leaner organization [10] - The liquidity position at the end of Q3 was $82.5 million, including $81.5 million in cash [24] Q&A Session Summary Question: Guidance for PBT and cost management - Management expects significant acceleration in usage in Q4 due to strong seasonality, with further growth in usage likely to bring economies of scale on fulfillment costs [33][34] Question: Working capital movements for Q4 - Management indicated that they do not expect significant changes in working capital dynamics for Q4, as they can ramp up inventory much faster now [36][39] Question: October order and GMV growth - Management confirmed that the above 30% growth in October reflects continued momentum, but they remain cautious about setting expectations for the entire quarter [42][43] Question: Competitive environment and supply access - Management noted that international platforms are facing challenges in Africa due to operational difficulties, while Jumia's localized model provides a competitive advantage [52][55] Question: Advertising monetization opportunities - Management sees significant upside potential in advertising revenue, aiming to reach around 2% of GMV in the future, driven by better tools and execution [87][88]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $45.6 million, up 25% year-over-year, or up 22% on a constant currency basis [18] - Adjusted EBITDA loss improved to $14 million compared to $17 million in the same quarter last year [10] - Loss before income tax was $17.7 million, a 1% decrease year-over-year, or an 8% decline on a constant currency basis [10][24] Business Line Data and Key Metrics Changes - Physical goods GMV grew by 26% year-over-year, adjusting for perimeter effects, and by 37% when excluding corporate sales [4][7] - First-party sales revenue was $23.8 million, up 54% year-over-year, driven by strong momentum with key international brands [20] - Third-party sales were $19 million, up 5% year-over-year, or 2% on a constant currency basis [18] Market Data and Key Metrics Changes - Active customers increased by 22% year-over-year, marking the highest increase in the past three years [7] - Orders from up-country regions represented 60% of total volume this quarter, up from 54% in the same quarter last year [11] - Nigeria's physical goods orders were up 30% year-over-year, while GMV increased by 43% [12] Company Strategy and Development Direction - The company aims to achieve full-year profitability by 2027, focusing on driving profitable growth through efficiency and strategic investments [5][27] - Jumia is phasing out non-core digital transactions to streamline operations and enhance organizational efficiency [6] - The company is expanding its logistics and commercial infrastructure to serve secondary cities and rural regions, which are driving some of the fastest growth [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, citing strong customer demand and operational improvements [9][27] - The competitive environment remains stable, with some global entrants pulling back, allowing Jumia to gain local market share [16] - Management highlighted the importance of adapting to local market conditions, which presents challenges for international platforms [53][55] Other Important Information - The average order value for physical goods in Q3 2025 stood at $35, down from $38 in Q3 2024 [8] - The company ended Q3 2025 with a liquidity position of $82.5 million, including $81.5 million in cash and cash equivalents [24] - Fulfillment cost per order decreased by 22% year-over-year to $1.86, driven by structural efficiencies [10] Q&A Session Summary Question: Guidance for PBT and cost attribution - Management expects significant acceleration in usage in Q4 due to strong seasonality, which will translate into revenue and monetization [33] - Fulfillment cost per order is expected to remain at the new baseline of $1.86, reflecting improved efficiency [34] Question: Working capital movements for Q4 - Management indicated that they do not expect significant changes in working capital dynamics for Q4, as they can ramp up inventory faster [39] Question: October order and GMV growth - Management confirmed that the above 30% growth in October is indicative of continued momentum, but they remain cautious about expectations for the full quarter [43] Question: Competitive environment and supply access - Management noted that international platforms are facing challenges in Africa due to logistics and customs issues, which Jumia is well-positioned to navigate [53][55] Question: Advertising monetization opportunities - Management sees significant upside potential in advertising revenue, aiming to reach around 2% of GMV in the mid to long term [87][88]