Jumia(US:JMIA)2023-08-14 16:00Financial Performance - Adjusted EBITDA and Operating losses decreased by approximately 66% year-over-year, reaching the lowest loss levels in over 4 years[4] - Adjusted EBITDA loss guidance for 2023 updated to $90-100 million from $100-120 million previously[1] - Revenue for Q2 2023 was $48.5 million, down 15% year-over-year, but up 6% on a constant currency basis[20] - First Party revenue decreased to $21.9 million, a 12% year-over-year decline, but increased by 19% on a constant currency basis[20] - Gross profit reached $26.0 million, down 13% year-over-year, with a gross profit margin of 12.9%, up from 11.0% in Q2 2022[22] - Operating loss for Q2 2023 was $23.3 million, a 66% reduction year-over-year[32] - Adjusted EBITDA loss was $19.3 million, down 66% year-over-year[32] - The company’s total comprehensive loss for Q2 2023 was $38,137 thousand, down from $70,985 thousand in Q2 2022, a reduction of approximately 46.3%[41] Consumer Metrics - Quarterly Active Consumers decreased by 28.1% year-over-year to 2.4 million, while Orders fell by 36.5% to 6.5 million[2] - JumiaPay Transactions fell by 37.9% year-over-year to 2.1 million, primarily due to a decline in promotional digital services[11] - TPV penetration as a percentage of GMV increased from 27.4% in Q2 2022 to 28.1% in Q2 2023[17] - The Electronics category in Senegal grew by 58% year-over-year, indicating early signs of success in rebuilding general merchandise categories[10] Cost Management - Fulfillment expenses reduced by 50.4% year-over-year, while Sales and Advertising expenses decreased by 74%[5] - Fulfillment expense was $13.7 million, down 50% year-over-year, with fulfillment expense per order decreasing by 30% to $2.23[23] - Sales and Advertising expense was $5.8 million, down 74% year-over-year, with expense per order decreasing by 59% to $0.88[24] - General and Administrative (G&A) expenses, excluding share-based compensation, were $17.7 million in Q2 2023, down 32.7% from $26.3 million in Q2 2022[65] - General & Administrative expense guidance for 2023 is revised to $85 million to $95 million, down from the previous range of $90 million to $105 million[38] Cash and Assets - Cash position as of June 30, 2023, was $166.3 million, with cash and cash equivalents at $61.0 million[33] - Cash and cash equivalents at the end of Q2 2023 were $61,040 thousand, compared to $53,767 thousand at the end of Q2 2022, reflecting an increase of approximately 13.3%[44] - Total assets decreased from $330,221 thousand as of December 31, 2022, to $248,949 thousand as of June 30, 2023, a decline of about 24.5%[43] - Total equity attributable to equity holders of the Company decreased from $174,718 thousand as of December 31, 2022, to $106,346 thousand as of June 30, 2023, a decline of about 39.1%[43] Operational Efficiency - The company continues to focus on improving operational efficiency and reducing costs in response to the challenging market conditions[45] - The company reported a net cash flow used in operating activities of $20,725 thousand for Q2 2023, a significant improvement from $58,335 thousand in Q2 2022, indicating a reduction of approximately 64.6%[44] - The company experienced a foreign exchange gain of $8,644 thousand in Q2 2023, compared to a gain of $600 thousand in Q2 2022, reflecting a substantial increase[44] Market Dynamics - Gross Merchandise Value (GMV) declined by 25.4% year-over-year to $202.3 million, with a constant currency GMV decrease of 11.4%[2] - Total Payment Value (TPV) decreased by 23.3% year-over-year to $56.9 million, with a constant currency decline of 5.7%[11] - Gross Merchandise Value (GMV) for Q2 2023 was $202.3 million, a decrease of 25.4% year-over-year, while on a constant currency basis, it decreased by 11.4% to $240.1 million[65] - Total Payment Volume (TPV) for Q2 2023 was $56.9 million, down 23.3% year-over-year, with a TPV as a percentage of GMV of 28.1%[65] Strategic Insights - Management noted that Adjusted EBITDA is a critical measure for evaluating operational performance and strategic initiatives, despite its limitations[59][60] - The company emphasized the importance of using constant currency metrics to understand underlying business dynamics, excluding currency effects[61][62]